TomCo Energy PLC - Preliminary Results

RNS Number:1121R
TomCo Energy PLC
31 March 2008

TOMCO ENERGY PLC
('TomCo' or 'the Company')

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2007

TomCo (TOM.L), the oil mining and production company, today announces its
Preliminary Results for the year ended 30 September 2007.

HIGHLIGHTS

• Successful launch of TomCo Energy plc on AIM following completion of the
acquisition of The Oil Mining Company Inc in January 2007 which owns oil
shale leases covering 2,918 acres in Utah, estimated by SRK Consulting to
contain some 230 million barrels of oil

• Raised £1.77 million in new equity for investment in conventional oil assets

• During the year, acquired interest in 7 drilling participations and acquired
rights to participate in 17 new drilling prospects in US

• Gross production averaging 11.46 barrels per day from PDP's

Stephen Komlosy, Chairman of TomCo, commented:

'The period under review covers a period during which the Company has been
transformed: the Board's strategy, that of holding the oil shale assets until
commercial production is economical, whilst pursuing exposure to conventional,
low cost oil & gas production, is being fulfilled. The Board continues to
actively seek further investments, acquisitions and oil business associations.'

Shareholders may be interested to view the Company's web site,
www.tomcoenergy.com which contains a summary of our current strategy of
participation in oil producing wells and prospects and contains detailed
information about US oil shale and related interesting links to US Government
sites, the Company's share price (twenty minute delay) together with press
articles and Company announcements as they are made.

For further information, please contact:

TomCo Energy Plc
Stephen Komlosy Tel: (020) 7808 4857

Strand Partners Limited
Simon Raggett Tel: (020) 7409 3494
Warren Pearce

Bankside Consultants Tel: (020) 7367 8888
Simon Rothschild
Louise Mason

TomCo Energy Plc

PRELIMINARY RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2007

CHAIRMAN'S STATEMENT

I am pleased to announce the results for TomCo Energy Plc ("TomCo" or "the
Company") (formerly Netcentric Systems Plc) for the year ended 30th September
2007. These financial results reflect the fundamental change by the Company into
an active oil production and exploration company during the period.

Acquisition of The Oil Mining Company Inc

On 16 January 2007, Netcentric Systems Plc completed the reverse acquisition of
The Oil Mining Company Inc, which owns two separate groups of mineral leases on
a total of 2,918 acres of oil shale in the State of Utah, USA. The independent
firm of mining consultants, SRK, reporting on the acquired leases, has estimated
these leased oil shale areas to contain some 230 million barrels of oil.

On completion of the acquisition, the Company changed its name to TomCo Energy
Plc and was re-admitted to trading on AIM (TOM.L) and John Ryan, the President
of The Oil Mining Company Inc, was appointed to the Board as Commercial
Director.

In conjunction with the acquisition, the Company raised a total of £1.78 million
through a placing of 71.28 million ordinary shares of 0.5 pence each ("Ordinary
Shares"), at a placing price of 2.5 pence each, which has been used for working
capital and primarily to enable the Company to investigate and make investments
in producing oil wells and drilling in proven undeveloped acreage in the USA.

Investments

During the year, the Company took interests in five drilling participations two
of which were successful and one of which has not yet started drilling. The
Company also acquired for $972,000, a 50% interest in the Mark III leases,
"Saratoga and Abel" in Lubbock County, Texas, which have 8 producing wells and
preliminary estimated Reserves of 28,960 barrels and subsequent to the year end
has announced a six well "in-fill" drilling programme at these two leases with a
further eleven wells projected to be drilled later during 2008.

We also spent a significant amount of time and effort to research and bring
forward the acquisition programme for two sizeable target companies, which,
unfortunately, failed to pass the due diligence tests which are a vital aspect
of our decision making process. We will continue to be vigilant about all
acquisition opportunities and the process has enhanced our contacts within the
industry and in turn our access to a larger number of high class prospects. We
continue to research a number of other potential acquisition targets.

Post Balance Sheet

Acquisition of Heletz-Kokhav and Luxi Licenses, Israel

On 16 January 2008 the Company announced that it had signed a Letter of Intent
("LOI") regarding the acquisition of interests in two onshore petroleum licenses
in Israel from Avenue Group Inc (AVNU.OB), a New York based US listed Oil & Gas
Company, and its wholly-owned subsidiary Avenue Energy Israel Limited (together
referred to as "AEI") (the "Acquisition"). The interests to be acquired are a
50% interest in the Heletz-Blur-Kokhav Licence and a 25% interest in the
integral Iris License (the "Licenses"), which include the original
Heletz-Blur-Kokhav oilfield ("Heletz"). The concessions, covering over 68,000
gross acres, were recently awarded to AEI by the Israel Petroleum Commission and
are 3-year production and development licenses which can be extended to 30-year
production leases upon a significant increase in the production from its current
capability of 60 barrels of oil per day ("bopd").

The Heletz field, located 55km south of Tel Aviv and 12km east of the
Mediterranean coast, is Israel's only onshore producing oil field. The field has
produced in excess of 17 million barrels of oil to date from Cretaceous sands,
with peak production of 4,000 bopd in the mid 1960's.The Israeli Government
estimates the original oil-in-place (OOIP) for the field to be 50.7 million bbls
with 2 million bbls of primary recoverable oil remaining, and studies suggest
over 5 million bbls of secondary recovery potential may exist. A number of
undrilled, deeper exploration prospects on the licenses have estimated potential
in excess of 100 million bbls.

AEI and the Company will commission an independent determination of the
remaining reserves for the Heletz field as one of the first steps in an active
technical programme designed to identify well re-completion and infill well
drilling targets, and to examine secondary recovery options. Production from the
field had declined to around 60 bpd by 2007, although TomCo expects that the
implementation of modern production and recovery methods and selected infill
drilling will significantly increase production over the next 24 months,
resulting in the granting of a 30-year production lease.

Shareholders should be aware that the acquisition has not yet completed and the
Company will make further announcements regarding this transaction in due
course.

Strategy

The Company's strategy going forward is to hold the oil shale assets in reserve
until such time as their exploitation becomes commercially and economically
practical. In this regard, we believe that the Shell Oil "In Situ" extraction
process is the most likely to receive environmental clearance from US
authorities and start meaningful production within a six year time frame.
Secondly the Company is utilizing the expertise of Howard Crosby, our CEO, and
John Ryan, in investment in oil wells and proven undeveloped acreage located in
the US and in special situations like the Heletz License in Israel. This
strategy is being implemented and the Company has, to date, already invested
$1.39 million in such situations with a view to creating a prodigious and
productive investment portfolio of conventional American and Israeli based
shallow producing oil wells and proven undeveloped drilling locations. Meanwhile
the Board continues to actively seek further investments, acquisitions and oil
business associations.

Oil Shale

Although there have been recent ongoing advances in the technology to extract
oil from oil shale, particularly by Shell Oil, oil shale in the US is not yet
being commercially exploited on any scale, but your Board believes that this
situation will change over the next few years as a result of the huge strategic
and commercial pressures, together with present supply anxiety which will within
this time frame, induce the US to create an oil shale industry in the way that
the Canadian Tar Sands industry was created. There have been a number of oil
shale deals done in January 2008 in the US, including an acquisition by IDT and
apparent oil shale land purchases by Shell Oil which the Board believes supports
this view.

Future Investment

Your Board is now also reviewing certain other investments where clear advantage
can be shown to exist to assist in the improving the value of our shares.

Web Site

Shareholders can find detailed information on the Company's web site;
www.tomcoenergy.com which, in accordance with AIM Rule 26, contains a summary of
our current strategy, detailed information about US oil shale and oil shale
related links to US Government sites, the Company's share price, documents,
announcements, press releases and articles.

Stephen Komlosy
Chairman
31 March 2008

Consolidated income statement
For the financial year ended 30 September 2007

2007 2006
£'000 £'000

Revenue 68 -

Cost of sales (36) -
-------- --------
Gross profit 32 -
-------- --------
Administrative expenses (1,274) (131)
-------- --------
Operating loss (1,242) (131)

Financial income 30 4
-------- --------
Loss before taxation (1,212) (127)

Taxation - -
-------- --------
Loss for the year attributable to equity (1,212) (127)
shareholders -------- --------

Earnings per share 2007 2006
Pence per Pence per
share share

Loss per share (0.34) (0.09)

Fully diluted loss per share (0.34) (0.09)

All amounts derive wholly from continuing activities. The financial information
above may not be representative of future results

The Company has elected to take exemption under the Companies Act 1931- 2004 to
not present the parent Company's Income statement. The loss for the parent
Company for the year was £549,302 (2006: £127,443)

Balance sheets
As at 30 September 2007

Group Company Group Company
2007 2007 2006 2006
£'000 £'000 £'000 £'000

ASSETS
Non current assets
Property, plant and equipment 6 6 2 2
Oil properties 5,892 - - -
Investment in subsidiaries - 5,572 - -
Available for sale financial assets 49 49 94 94
-------- -------- -------- --------
5,947 5,627 96 96
-------- -------- -------- --------
Current assets
Trade and other receivables 54 1,118 86 86
Cash and cash equivalents 136 101 83 83
-------- -------- -------- --------
190 1,219 169 169
-------- -------- -------- --------
LIABILITIES
Current liabilities
Trade and other payables (93) (115) (47) (47)
-------- -------- -------- --------
(93) (115) (47) (47)

Net current assets 97 1,104 122 122
-------- -------- -------- --------
Net assets 6,044 6,731 218 218
======== ======== ======== ========

SHAREHOLDERS' EQUITY
Share capital 2,217 2,217 832 832
Share premium 5,593 5,593 188 188
Warrant reserve 272 272 - -
Retained earnings (2,038) (1,351) (802) (802)
-------- -------- -------- --------
Total equity 6,044 6,731 218 218
======== ======== ======== ========

Stephen A Komlosy John J May
Chairman Finance Director

Consolidated statement of changes in equity
For the financial year ended 30 September 2007

Share Share Warrant Retained
capital premium reserve earnings Total
£'000 £'000 £'000 £'000 £'000

Balance at
1 October 2006 832 188 - (802) 218

Recognition of
Share-based payments - - 272 - 272
Loss for year - - - (1,212) (1,212)
Issue of share capital 1,385 5,405 - - 6,790
Exchange - - - (24) (24)
-------- -------- -------- -------- --------
At 30 September 2007 2,217 5,593 272 (2,038) 6,044

Consolidated statement of recognised income and expense
For the financial year ended 30 September 2007

2007 2006
£'000 £'000

Currency translation differences (24) -
-------- --------
Net losses recognised directly in equity (24) -
Loss for the financial period (1,212) (127)
-------- --------
Total recognised expense for the year (1,236) (127)
-------- --------
Attributable to the equity shareholders
of the Company (1,236) (127)

Consolidated cash flow statements
For the financial year ended 30 September 2007

Group Company
2007 2006
£'000 £'000

Cash flows from operating activities
Cash generated from operations (540) (99)
-------- --------
Net cash used in operating activities (540) (99)
-------- --------

Cash flows from investing activities
Purchase of equipment (5) (2)
Purchase of oil leases (703) -
Purchase of available for sale financial assets (49) (94)
Finance income 30 4
-------- --------
Net cash used in investing activities (727) (92)
-------- --------

Cash flows from financing activities
Net proceeds from issue of share capital 1,320 271
-------- --------
Net increase in cash and cash equivalents 53 80

Cash and cash equivalents at beginning of 83 3
financial period
-------- --------
Cash and cash equivalents at end of financial 136 83
period ======== ========

NOTES

1. The figures set out above are derived from the audited accounts of TomCo
Energy Plc for the year ended 30 September 2007. The 2007 accounts will be sent
to shareholders shortly. The Annual General Meeting will be held at 5pm on 16
June 2008 at 26 Mount Row, London W1K 3SQ.

2. The Company's financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) and International Financial
Reporting Interpretations Committee (IFRIC) interpretations adopted by the
European Union (EU) and with those parts of the Companies Act 1931 to 2004
applicable to companies reporting under IFRS.

3. The financial information set out above does not constitute the Company's
statutory accounts for the years ended 30 September 2007 or 2006 within the
meaning of section 6 and Schedule 1 of the Isle of Man Companies Act 1982 but is
derived from those accounts. Statutory accounts for 2006 have been delivered to
the registrar of companies, and those for 2007 will be delivered in due course.
The auditors have reported on those accounts; their report was (i) unqualified
(ii) did not include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report and (iii) did not
contain a statement under section 15 (4) (a) or (6) of the Isle of Man Companies
Act 1982.

4. Segmental reporting

Analysis by geographical segment

The whole of the Group's revenue arises within the United States. The loss
before taxation arises within the United Kingdom and the United States. Net
assets are in the United Kingdom and the United States.

United United United
States Kingdom Total Kingdom
Year ended 30 September 2007 2007 2007 2006
£'000 £'000 £'000 £'000

Continuing activities
Revenue 68 - 68 -
Cost of sales (36) - (36) -
-------- -------- -------- --------
Gross profit 32 - 32 -
-------- -------- -------- --------
Administrative expenses (708) (566) (1,274) (131)
-------- -------- -------- --------
Operating loss (676) (566) (1,242) (131)

Financial income - 30 30 4
-------- -------- -------- --------
Loss for the year (676) (536) (1,212) (127)
======== ======== ======== ========

Financial assets
- Property, plant and equipment - 6 6 2
- Oil properties 5,892 - 5,892 -
- Available for sale
financial assets 49 - 49 94
Trade and other receivables 15 39 54 86
Cash and cash equivalents 13 123 136 83
-------- -------- -------- --------
Total assets 5,969 168 6,137 265
-------- -------- -------- --------

Financial liabilities
Trade and other payables - (93) (93) -
-------- -------- -------- --------
Total liabilities - (93) (93) -
-------- -------- -------- --------

Analysis by business segment

Based on an analysis of risks and returns, the Directors consider that the Group
has two main identifiable business segments; oil production and investing
activities. The Directors consider that no further segmentation is appropriate.

Oil
production Investing Central
activities activities costs Total
Year ended 30 September 2007 £'000 £'000 £'000 £'000

Continuing activities
Revenue 68 - - 68
Cost of sales (36) - - (36)
-------- -------- -------- --------
Gross profit 32 - - 32
-------- -------- -------- --------
Administrative expenses (708) - (566) (1,274)
-------- -------- -------- --------
Operating loss (676) - (566) (1,242)

Financial income - - 30 30
-------- -------- -------- --------
Loss for the year (676) - (536) (1,212)
======== ======== ======== ========

Financial assets
- Property, plant and equipment - - 6 6
- Oil properties 5,892 - - 5,892
- Available for sale
financial assets - 49 - 49
Trade and other receivables 15 - 39 54
Cash and cash equivalents 13 - 123 136
-------- -------- -------- --------
Total assets 5,920 49 168 6,137
-------- -------- -------- --------

Financial liabilities
Trade and other payables - - (93) (93)
-------- -------- -------- --------
Total liabilities - - (93) (93)
-------- -------- -------- --------

Oil
production Investing Central
activities activities costs Total
Year ended 30 September 2006 £'000 £'000 £'000 £'000

Continuing activities
Revenue - - - -
Administrative expenses - - (131) (131)
-------- -------- -------- --------
Operating loss - - (131) (131)

Financial income - - 4 4
-------- -------- -------- --------
Loss for the year - - (127) (127)
======== ======== ======== ========

Financial assets
- Property, plant and equipment - - 2 2
- Available for sale
financial assets - 94 - 94
Trade and other receivables - - 86 86
Cash and cash equivalents - - 83 83
-------- -------- -------- --------
Total assets - 94 171 265
-------- -------- -------- --------

Financial liabilities
Trade and other payables - - (47) (47)
-------- -------- -------- --------
Total liabilities - - (47) (47)
-------- -------- -------- --------

5. Earnings per share

Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of Ordinary shares
outstanding during the year.

For diluted earnings per share, the weighted average number of Ordinary shares
in issue is adjusted to assume conversion of all dilutive potential Ordinary
shares. Share warrants do not have a dilutive effect.

Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below.

Weighted
average
number of Per-share
Financial year ended 30 September 2007 Earnings shares amount
£'000 £'000 pence
Basic EPS
Earnings attributable to
Ordinary shareholders (1,212) 359,746 (0.34)
Effect of dilutive securities - - -
-------- -------- --------
Diluted EPS
Adjusted earnings (1,212) 359,746 (0.34)
-------- -------- --------

Weighted
average
number of Per-share
Financial year ended 30 September 2006 Earnings shares amount
£'000 £'000 pence
Basic EPS
Earnings attributable to
Ordinary shareholders (127) 149,227 (0.09)
Effect of dilutive securities - - -
-------- -------- --------
Diluted EPS
Adjusted earnings (127) 149,227 (0.09)
-------- -------- --------

This information is provided by RNS
The company news service from the London Stock Exchange

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