- TomCo Energy said a preliminary design report for the Greenfield Energy oil sands joint venture in Utah estimated a capital cost for the plant of $185m.

Greenfield was the company's recently formed 50/50 joint venture with Valkor.

The pre-front-end engineering and design (FEED) report estimated the total incremental cost of production was likely to fall below $30 per barrel of oil.

Costs could be brought down to less than $25 per barrel, it added, in the next round of design through heat recovery and process optimisations.

The plant would be designed to process 10,000 barrels of oil per day.

The report concluded that the plant could be constructed in a relatively short time frame, estimated to be just over a year from the commencement of construction to the start of production.

'We are delighted with the conclusions of the pre-FEED study, which indicates that the proposed commercial scale oil sands plant has favourable economics, both in terms of plant construction costs and cost per barrel of oil produced,' chief executive John Potter said.

'This coupled with the potentially modest time frame to construct a plant capable of producing ready for sale products means that we are very excited for the future of Greenfield.'

'We look forward to progressing matters with our partners and announcing further updates in due course.'

At 2:58pm: [LON:TOM] TomCo Energy PLC share price was -0.08p at 0.73p

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