We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

Tower Resources raises £1.5m for maintenance and work programmes

Fri 14 January 2022 14:32 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Africa-focussed oil and gas company Tower Resources raised £1.5m, it announced on Friday, to fund maintenance, planning and work programme costs across its portfolio.

The AIM-traded firm said the money was raised through the placing and subscription of 576,923,077 new shares at a price of 0.26p each, which was a 29% discount on the closing price on 13 January.

As part of the placing, the company's chairman and chief executive officer Jeremy Asher agreed to subscribe for 9,615,384 new shares in the placing, for £25,000.

The company said it would use the net proceeds to advance its portfolio and to cover working capital requirements going forward, including funding maintenance and planning expenditure in Cameroon to maintain the long-lead items inventory ready for the start of drilling and testing of the NJOM-3 well, pending completion of the farm-out, and to make payments and pre-payments to contractors.

It would also be used for work programme costs in Namibia for licence PEL96, where Tower was planning to conduct a basin modelling study based on the latest data available from recent drilling in the areas adjoining the acreage.

Work programme costs in South Africa for the Algoa-Gamtoos licence operated by 50% partner New Age Energy Algoa would also be covered, which adjoins the Total-operated blocks 11B/12B, and where the licence partners were preparing for 3D seismic data acquisition in 2022 and 2023.

Tower Resources said the funds would also be used for general working capital purposes.

"We are working to finalise the Cameroon farm-out, which both parties wish to see completed, and we are also encouraged by recent news reports of drilling operations underway at Graff-1 and Venus-1X, operated by Shell and TotalEnergies, respectively," said Jeremy Asher.

"However, while waiting for the farmout to complete we must continue to prepare for drilling operations and to maintain the current equipment inventory in a drill-ready state."

Asher said the company also wanted to keep moving forward in Namibia and South Africa, so it could capitalise on the improving economics of its acreage positions.

"This does require us to raise capital at this time, though we continue to seek to keep share issues to a minimum."

At 1415 GMT, shares in Tower Resources were down 20.55% at 0.29p.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.


    More AIM news from ShareCast

    No results were found