TomCo Energy : Unaudited interim results for the six months ended 31 March 2021

22 June 2021

TOMCO ENERGY PLC

("TomCo", the "Company" or the "Group")

Unaudited interim results for the six-month period ended 31 March 2021

TomCo Energy plc (AIM: TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, announces its unaudited interim results for the six-month period ended 31 March 2021.

CHAIRMAN'S STATEMENT

Operational

Our Greenfield joint venture with Valkor LLC has made progress despite the COVID-19 pandemic. The oil sands plant at Asphalt Ridge developed by Petroteq Energy Inc (the "POSP") and enhanced by Greenfield has now been brought into sustained production, extracting oil from sands in a manner that we believe could be scaled up to be commercially viable in large, purpose-built plants, with a target of being capable of producing 10,000 barrels of oil per day. In late May 2021, we received a draft of the Front-End Engineering and Design ("FEED") study that, whilst still being reviewed, is encouraging. Taken together with the practical demonstration of the process via the POSP test plant, such draft report has led Greenfield to most recently move ahead with investigating the possibility of acquiring up to a 100 per cent. interest in a large oil sands site in Utah via Tar Sands Holdings II LLC ("TSHII") believed to be suitable for the construction of a potential initial commercial scale plant. Alongside the potential acquisition, Greenfield is also in the early stages of exploring possible financing opportunities for the potential project.

We have continued to postpone operations in respect of TurboShale's RF Technology, pending a return to normality after the COVID-19 pandemic abates.

Details of our progress during the reporting period, and more recently, is outlined in the various regulatory announcements the Company has issued. We will continue to provide regular updates as matters progress and believe that Greenfield is well positioned to achieve its goals.

Board changes

At the time of our last fund-raising, in the autumn of 2020, Stephen West and Alexander Benger stepped down from the Board to focus on commitments elsewhere, I became Chairman, and we appointed two new non-executives, Richard Horsman and Robb Kirchner. In the spring of 2021, Robb Kirchner left us to pursue other opportunities, but I am delighted that we were able to attract Louis Castro to join our Board. Louis is widely respected in our sector and brings very valuable experience and judgment relevant to the Company's future progression.

Funding

During the reporting period, we raised £3.5m (gross) via a placing in November 2020, through the issue of 777,777,777 new ordinary shares at a price of 0.45 pence per share, with the net proceeds being used to provide general working capital and to fund Greenfield's development.

As at 21June 2021, TomCo had approximately £1,390,000 of cash reserves available to it. The Board believes that the Group has sufficient funds to cover its expected and normal outgoings for the next 12 months. However, we anticipate needing to raise additional funds in the event a decision is made to exercise our option to acquire the abovementioned site and commence work on our first full-scale oil sands plant and related matters. The contractual balance due if Greenfield was to assume full ownership of the site via TSHII is up to approximately US$16 million (dependent on the timing of the option exercise) and, at this stage, we envisage that Greenfield would require funding in excess of US$110 million for the construction of the first plant, the vast majority of which it would seek to finance by way of debt. Should Greenfield proceed with the acquisition, TomCo will work closely with its joint venture partner to explore the most appropriate financing solutions for the requisite funding.

I would like to thank shareholders for their continued support and encouragement through recent challenging times. We remain focused on meeting the further challenges that lie ahead.

Malcolm Groat

Non-Executive Chairman

Condensed consolidated statement of comprehensive income

For the six-month period ended 31 March 2021

		Unaudited	Unaudited	Audited
		Six months	Six months
		Year ended
		ended	ended
		30 September
		31 March	31 March
		2021	2020	2020
	Notes	£'000	£'000	£'000
Revenue		-	-	-
Cost of sales		-	-	-
Gross profit/(loss)		-	-	-
Administrative expenses		(738)	(377)	(1,031)
Operating loss	3	(738)	(377)	(1,031)
Finance income/(costs)		-	1	1
Share of loss of joint venture		(39)	-	(40)
Loss on ordinary activities before taxation		(777)	(376)	(1,070)
Taxation		-	-	-
Loss for the period		(777)	(376)	(1,070)
Loss for the period/year attributable to:
Equity shareholders of the parent		(739)	(355)	(1,028)
Non-controlling interests		(38)	(21)	(42)
		(777)	(376)	(1,070)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign
operations		(585)	(107)	350
Other comprehensive income for the year attributable to:
Equity shareholders of the parent		(598)	(108)	(356)
Non-controlling interests		13	1	6
Other comprehensive income		(585)	(107)	(350)
Total comprehensive loss attributable to:
Equity shareholders of the parent		(1,337)	(463)	(1,384)
Non-controlling interests		(25)	(20)	(36)
		(1,362)	(483)	(1,420)
Loss per share attributable to the equity shareholders of the parent
Basic & Diluted Loss per share (pence)	4	(0.06)	(0.16)	(0.30)

Condensed consolidated statement of financial position

As at 31 March 2021

		Unaudited	Unaudited
		Six months	Six months	Audited
		ended	ended	Year ended
		31 March	31 March	30 September
		2021	2020	2020
	Note	£'000	£'000	£'000
Assets
Non-current assets
Intangible assets	5	8,192	9,221	8,834
Property, plant and equipment		382	425	411
Investment in joint venture	6	1,859	-	1,224
Other receivables		24	27	26
		10,457	9,673	10,495
Current assets
Trade and other receivables		138	92	118
Cash and cash equivalents		2,250	751	334
		2,388	843	452
Total Assets		12,845	10,516	10,947
Liabilities
Current liabilities
Trade and other payables		(228)	(353)	(215)
		(228)	(353)	(215)
Net current assets		2,160	490	237
Total liabilities		(228)	(353)	(215)
Total Net Assets		12,617	10,163	10,732
Shareholders' equity
Share capital		-	-	-
Share premium	7	30,271	28,784	29,222
Warrant reserve	8	3,466	354	1,288
Translation reserve		(316)	530	282
Retained deficit		(20,606)	(19,348)	(19,887)
Equity attributable to owners of the parent		12,815	10,320	10,905
Non-controlling interests		(198)	(157)	(173)
Total Equity		12,617	10,163	10,732

The financial information was approved and authorised for issue by the Board of Directors on 21June

2021 and was signed on its behalf by:

1. Potter Director

Condensed consolidated statement of changes in equity

For the six months ended 31 March 2021

							Non-
	Share	Share	Warrant	Translation	Retained		controlling	Total
	capital	premium	reserve	reserve	deficit	Total	interest	equity
Note	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 30 September 2019	-	28,247	65	638	(19,012)	9,938	(137)	9,801
(audited)
Loss for the period	-	-	-	-	(355)	(355)	(21)	(376)
Comprehensive loss for
the period	-	-	-	(108)	-	(108)	1	(107)
Total comprehensive
loss for the period	-	-	-	(108)	(355)	(463)	(20)	(483)
Issue of shares (net of
costs)	-	537	327	-	-	864	-	864
Expiry of warrants	-	-	(42)	-	42	-	-	-
Share based payment
credit		-	4	-	(23)	(19)	-	(19)
At 31 March 2020	-	28,784	354	530	(19,348)	10,320	(157)	10,163
(unaudited)
Loss for the period	-	-	-	-	(673)	(673)	(21)	(694)
Comprehensive loss for
the period	-	-	-	(248)	-	(248)	5	(243)
Total comprehensive
loss for the period	-	-	-	(248)	(673)	(921)	(16)	(937)
Issue of shares (net of
costs)	-	329	1,050	-	-	1,379	-	1,379
Exercise of warrants	-	109	(114)	-	114	109	-	109
Expiry of warrants	-	-	(1)	-	1	-	-	-
Share based payment	-	-
charge	(1)	-	19	18	-	18
At 30 September 2020	-	29,222	1,288	282	(19,887)	10,905	(173)	10,732
(audited)
Loss for the period	-	-	-	-	(739)	(739)	(38)	(777)
Comprehensive loss for	-	-	-
the period	(598)	-	(598)	13	(585)
Total comprehensive
loss for the period	-	-	-	(598)	(739)	(1,337)	(25)	(1,362)
Issue of shares (net of
costs)	-	1,049	2,178	-	-	3,227	-	3,227
Share-based payment
credit	-	-	-	-	20	20	-	20
At 31 March 2021	-	30,271	3,466	(316)	(20,606)	12,815	(198)	12,617
(unaudited)

The following describes the nature and purpose of each reserve within owners' equity:

Reserve	Descriptions and purpose
Share capital	Amount subscribed for share capital at nominal value, together with transfers to share
	premium upon redenomination of the shares to nil par value.
Share premium	Amount subscribed for share capital in excess of nominal value, together with transfers
	from share capital upon redenomination of the shares to nil par value.
Warrant reserve	Amounts credited to equity in respect of warrants to acquire ordinary shares in the
	Company.
Translation reserve	Amounts debited or credited to equity arising from translating the results of subsidiary
	entities whose functional currency is not sterling.
Retained deficit	Cumulative net gains and losses recognised in the consolidated statement of
	comprehensive income.
Non-Controlling Interests	Amounts attributable to the non-controlling interest in TurboShale Inc.

Condensed consolidated statement of cash flows

For the period ended 31 March 2021

		Unaudited	Unaudited	Audited
		Six months	Six months	Year ended
		ended 31	ended 31	30 September
		March 2021	March 2020	2020
	Note	£'000	£'000	£'000
Cash flows from operating activities
Loss after tax		(777)	(376)	(1,070)
Finance (income)/costs		-	(1)	(1)
Amortisation of intangible fixed assets		3	3	6
Share-based payment (credit)/charge		20	(19)	(1)
Unrealised foreign exchange losses		172	-	81
Share of loss of joint venture		39	-	40
Decrease/(increase) in trade and other receivables		(20)	5	(21)
(Decrease)/increase in trade and other payables		13	(239)	(384)
Cash used in operations		(550)	(627)	(1,350)
Interest received/(paid)		-	1	(1)
Net cash outflows from operating activities		(550)	(626)	(1,349)
Cash flows from investing activities
Investment in intangibles	5	-	(124)	(29)
Investment in joint venture	6	(761)	-	(1,279)
Net cash used in investing activities		(761)	(124)	(1,308)
Cash flows from financing activities
Issue of share capital		3,500	864	2,535
Costs of share issue		(273)	-	(182)
Net cash generated from financing activities		3,227	864	2,353
Net increase/(decrease) in cash and cash		1,916	114	(304)
equivalents
Cash and cash equivalents at beginning of		334	639	639
financial period
Foreign currency translation differences		-	(2)	(1)
Cash and cash equivalents at end of financial		2,250	751	334
period