Breakout for TomCo?October 31, 2011
TomCo is the London-based company with leases on large blocks of land in the shale oil rich region of the Uinta Basin in Utah. This summer, they announced that they had awarded contracts to begin pre-development of these leases. This month, their stock has shown a breakout:
Rumor has it (sorry, no links) that their partner RedLeaf Resources, the developers of the revolutionary EcoShale process that enables the production of kerogen oil without the use of water, will begin production on their own leases in early 2013, with TomCo to follow as soon as later that year.
The development of shale oil in an economical and environmentally friendly matter will be an even bigger game changer than has been the development of shale gas. I am told (again, all rumor and scuttlebutt, no links) that November could be a big month for shale oil news.
I am not invested in TomCo, but I have been told that shares are very difficult to come by this week. I do not know if that is irrational exuberance or simply the result of reasoned knowledge and well founded expectations, but I am hopeful for the latter, only because I want to see this shale resource brought to market on a large scale and the EcoShale process is so promising on so many fronts.