TOM Tomco Energy Plc

By Alex MacDonald

LONDON--Shares in TomCo Energy PLC (TOM.LN) fell after the oil shale explorer said that first oil from its U.S. Holliday Block is likely to be delayed by about two years after its technology partners said they would delay the construction.

The company said that its technology provider Red Leaf Resources Inc., along with Total SA, told it they intend to defer the construction of the EcoShale capsule to 2017. They will instead on improving the capsule's design to lower its production cost to $30 a barrel from $40 a barrel. The production system capsule is key to developing the block.

TomCo said it will only invest in the commercial scale production of the capsule for its Holliday Block once it has received the results of the capsule's tests on a nearby field.

At 0829 GMT, TomCo's shares were down 27% at 0.15 pence a share.

Write to Alex MacDonald at alex.macdonald@wsj.com

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