TomCo Energy plc (LON:TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, has announced an extension to the repayment date for the unsecured US$1.5 million loan from Valkor Oil & Gas LLC to the Company’s wholly owned subsidiary, Greenfield Energy LLC, used for the acquisition of the initial 10% of the Membership Interests in Tar Sands Holdings II LLC, as announced on 16 November 2021.
On 31 May 2022, the Company announced that the terms of the Loan had been varied in order to extend the repayment date to on or before 30 June 2022 and on 28 June 2022 that it had been further extended to 31 July 2022. The terms of the Loan have now been further varied in order to extend the repayment date to on or before 31 August 2022.
As a former joint venture partner, Valkor is considered to be a related party of the Company (as defined in the AIM Rules for Companies) and, accordingly, the variation of the Loan’s terms is deemed to constitute a related party transaction pursuant to AIM Rule 13. The TomCo directors, having consulted with Strand Hanson Limited, the Company’s Nominated Adviser, consider that the variation of the Loan’s terms is fair and reasonable insofar as the Company’s shareholders are concerned.
