TomCo Energy plc (LON:TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, has provided an update with respect to the Company’s 100% owned subsidiary, Greenfield Energy LLC’s, potential acquisition of the remaining ownership and membership rights and interests in Tar Sands Holdings II LLC. As previously announced, Greenfield owns a 10% Membership Interest in TSHII and holds an exclusive option, exercisable at its sole discretion, to acquire the remaining 90% of the Membership Interests for additional cash consideration of US$16.25 million which was scheduled to expire on 28 February 2023.
Further to the announcement on 2 March 2023 which noted that the Company was in discussions with the counterparty to the Agreement with a view to seeking a further extension to the exercise period in respect of the Option, the Company is pleased to announce that the Agreement has now been varied in order to extend the exercise period of the Option. Accordingly, Greenfield may now exercise the Option, at its sole discretion, by delivering a notice of exercise on or before 31 March 2023 and making payment of the US$16.25 million cash consideration by no later than 5 April 2023.
There can be no certainty that the required funding can be secured to complete the acquisition of the remaining 90% of the Membership Interests and further announcements will be made as and when appropriate.