TomCo Energy plc (LON:TOM), the US operating oil development group focused on using innovative technology to unlock unconventional hydrocarbon resources, has announced a repayment of US$250,000 and further extension to the repayment date for the remaining US$1,000,000 outstanding principal amount of the unsecured loan from Valkor Oil & Gas LLC to the Company’s wholly owned subsidiary, Greenfield Energy LLC, which was used for the acquisition of the initial 10% of the Membership Interests in Tar Sands Holdings II LLC, as detailed in the Company’s announcement of 16 November 2021.
On 31 May 2022, 28 June 2022, 1 August 2022 and 1 September 2022, the Company announced that the terms of the Valkor Loan had been varied in order to extend the repayment date, with the last extension being to on or before 14 October 2022. TomCo Energy announces that the terms of the Valkor Loan have now been further varied to extend the repayment date for the remaining US$1,000,000 principal amount of the loan to on or before 31 October 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 further variation of the Valkor 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 further variation of the Valkor Loan’s terms is fair and reasonable insofar as the Company’s shareholders are concerned.
