Tower Resources plc, (AIM: TRP), the oil and gas exploration company with interests in sub-Saharan Africa, principally in Uganda and Namibia, is pleased to announce, in response to continuing institutional interest in the company, the institutional placing announced on 12 January has been increased from £360,000 to £500,000 before expenses through the placing (the ‘Placing’) of 25,000,000 new ordinary shares (increased from 18,000,000 new ordinary shares) of 0.1p each in the Company (the ‘Placing Shares’) with institutional investors at a price of 2 pence per Placing Share.
It is intended that the proceeds of the Placing will be used to continue funding the preparation for the second exploration well in Uganda.
The Placing utilises the Company’s existing authorities, and the Placing Shares equate to 4.1 per cent of the company’s enlarged issued share capital.
Following admission to trading on AIM, the Placing Shares, will rank pari passu in all respects with the existing ordinary shares. Tower Resources’ total issued and voting share capital will comprise of 614,329,422 ordinary shares of 0.1p. It is expected that all the Placing Shares will be admitted to trading on 20 January 2009.
Peter Kingston, Executive Chairman of Tower Resources, said:
‘The continued good drilling results from Tullow Oil and Heritage Oil in Uganda have raised awareness of our upcoming drilling programme in Block EA5, Uganda, and we are pleased to have received further support for an increased fundraising, especially in the current market.’