Wallace acts for AIM quoted TomCo Energy on Israeli Oil Field Acquisition

May 2008

Wallace has advised AIM listed oil and gas company TomCo Energy (“TomCo”) on the acquisition of interest in two oil field production licences in Israel from Avenue Group, a New York based, US listed oil and gas company.  In a deal worth over $6 million, the interest acquired includes a 50% share in the Heletz-Blur-Kokhav licence and a 25% share in the adjacent Iris licence. 

TomCo holds two shale oil leases in the Green River Basin with an estimated potential yield of 230 million barrels.

The latest acquisition gives TomCo the potential for in excess of 100 million barrels of oil at deeper levels. 

To assist in funding the acquisition, TomCo made an institutional placing of its shares to raise approximately £1 million and issued a convertible loan note to Trafalgar Capital Specialised Investment Fund for €1 million.  Managing Partner Rex Newman, who led the deal, commented:

“This deal represented an exciting opportunity for TomCo to invest in two producing Israeli oil fields.  It was rewarding to work collaboratively with a major Israeli law practice on this transaction.”