25 May 2012

TomCo Energy

HOLD

17/11/2011 Robert Tyerman

Fresh buying has helped boost shares in US oil shale play TomCo Energy (TOM), backed by London Mining (LOND) co-founder Chris Brown.

Punters hope that private group Red Leaf Resources, TomCo's partner in a project to tap a potential 123m-barrel resource from the Holliday Block in Utah, is close to clinching funding arrangements for a nearby project.

Kenglo One, a company associated with Brown, holds nearly 35% of AIM-quoted TomCo, which intends to produce oil by using 'EcoShale', a relatively environmentally friendly process that has been developed by Red Leaf. Experienced mining financier Paul Rankine recently joined the board of TomCo, headed by veteran small company player Stephen Komlosy.

A former Israeli oil flop, TomCo returned to AIM last August with a £3m placing at 1p. Recommended by Growth Company Investor at 0.98p in September, the shares have hit 3.12p and now trade at 2.63p.

Hold on for now.

Tags: AIM market, Chris Brown, EcoShale process, Paul Rankine, Stephen Komlosy, Utah

Sector: Oil & Gas Producers

Companies: Tomco Energy

Market cap: £37m

PE Forecast: n/a

Share price: 2.63p

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