TomCo Energy FY 2025 Results: Smaller Loss, Strategic Reset with Valkor, and a Funding To‑Do List
TomCo Energy has published audited results for the year to 30 September 2025. The headline is a sharply reduced loss after a bruising 2024, plus a meaningful reset of the Valkor relationship that could finally put activity back on the ground in Utah. There is, however, a clear funding timetable and a stated going concern risk investors must weigh.
Key financials investors should know
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Loss before tax | £0.69 million | £6.34 million |
| Administrative expenses | £623,000 | £854,000 |
| Foreign exchange loss | £8,000 | £817,000 |
| Finance costs | £55,000 | £59,000 |
| Cash at year end | £151,000 | £857,000 |
| Net assets/(liabilities) | (£0.30 million) | £0.35 million |
| Basic & diluted EPS | (0.02p) | (0.17p) |
| Loans (current) | £442,000 | £462,000 |
Why the improvement year on year? FY 2024 carried a one‑off £4.27 million impairment. Strip that out and the operating profile is still lean, but the step down in admin and FX drag helped.
Strategic reset: 50:50 Greenfield with Valkor and a Board seat
In February 2026 TomCo reinstated Valkor as a 50% co‑owner of Greenfield Energy. Valkor’s founder and CEO, Steven Byle, is joining the TomCo Board as a Non‑Executive Director, subject to the Nominated Adviser’s customary checks. The Greenfield loan from Valkor was also amended, with half of the outstanding balance settled in new TomCo shares at a deemed 0.1p – a premium to the prevailing market price at the time – and the remainder rescheduled.
Why it matters:
- Alignment – equity ownership and a Board seat bring Valkor fully back into the tent.
- Shared pathway – TomCo expects to participate alongside Valkor in drilling on AC Oil’s leased acreage, initially the six currently permitted wells, by end 2026 if Valkor finalises an economic drilling methodology.
- Plant option – TomCo gets an 18‑month window, once Valkor’s neighbouring Asphalt Ridge plant reaches commercial production, to pursue financing and build a similar oil sands separation plant on tract D via Greenfield. That piggybacks Valkor’s build-and-commission learning curve.
Operational pathway: wells first, plant later
Valkor is trialling drilling techniques below the oil‑sands layer through 2026. If successful, TomCo aims to participate in one or more wells on the AC Oil lease area by end 2026. The company guides to a typical well cost of $0.8 million to $1.0 million, to be held in special purpose vehicles outside Greenfield and funded by a consortium. Each participant would take a proportional revenue share based on their funding contribution.
My read: the SPV route is sensible – it contains capital risk at the project level and avoids overloading TomCo’s balance sheet in the early innings. The trade‑off is sharing upside, but for a junior that is often the only practical way to get into production.
Funding and going concern: what the timetable says
Cash at 27 March 2026 was about £0.4 million, following a £550,000 gross placing and subscription on 23 February 2026. The company also received £12,000 in January 2026 from broker warrant exercises.
The Valkor loan was amended. Half was capitalised into TomCo equity at a premium; the remaining unsecured balance is scheduled for repayment on 23 February 2027. Management’s base case, however, assumes repaying the second half in Q3 2026 to resolve negative equity sooner.
Crucially, the board’s cash flow forecast indicates TomCo will need approximately an additional £0.6 million in Q3 2026 – including the planned loan repayment – to cover working capital through to 31 March 2027. Beyond that, further funding will be required. The auditor flags a material uncertainty regarding going concern. That does not mean failure is imminent, but it does mean fresh capital is a must-have, not a nice-to-have.
Context: what has changed since the TSHII redemption
TomCo received $1.575 million in Q3 2024 for redeeming its 10% stake in Tar Sands Holdings II LLC. That let the group clear creditors, reduce the Valkor balance, and operate for roughly 18 months without new equity. The company explored other energy and mining opportunities in the interim, but nothing passed the feasibility or attractiveness threshold. The renewed Valkor partnership is therefore the centrepiece of the go‑forward plan.
Risks, guardrails and what to watch next
- Technical risk – Valkor must demonstrate a commercially viable drilling methodology in 2026. Without that, a 2026 spud on AC Oil’s acreage is unlikely.
- Funding risk – The company needs about £0.6 million in Q3 2026 and more beyond. Equity, debt or a combination could be used, but none is guaranteed.
- Regulatory and ESG risk – US federal and Utah state permitting, environmental and worker safety rules apply. Compliance costs and timelines can move.
- Execution risk – Even if wells are drilled, they may not be commercially successful. The same caution applies to any future oil sands plant.
Potential catalysts:
- Valkor announcing a proven and repeatable drilling methodology.
- Consortium funding commitments for initial wells on the AC Oil lease area.
- Clear timetable for Asphalt Ridge plant construction and commissioning.
- Repayment of the remaining Valkor loan balance as planned in Q3 2026.
- Any agreement with TSHII’s owners that advances mined oil sands on tract D.
My take: cautiously constructive, still high risk
The FY 2025 numbers are tidy enough for a pre‑revenue junior – a smaller loss, lower admin run‑rate, and clear disclosure on cash needs. The strategic news matters more: a 50:50 Greenfield, Valkor on the Board, a premium equity conversion, and a defined path to drilling in 2026 if the methodology clicks. That is the most coherent route to near‑term activity TomCo has set out in some time.
The flip side is non‑trivial. There is a material going concern uncertainty, funding is essential this year, and technical success is not yet in the bag. For investors who can stomach early‑stage energy risk, the reset with Valkor improves alignment and reduces some execution risk via SPVs and a follow‑on plant option. For more cautious holders, watch for technical proof points and the Q3 2026 funding package before leaning in.
Where to read more
The full Annual Report, governance details and RNS archive are available on the TomCo Energy website.
