Tower Resources plc (the “Company” or “Tower” (TRP.L, TRP LN)), the AIM-listed Africa-focussed oil and gas exploration company, announces its Interim Results for the six months ended 30 June 2014.
- Strategic developments during the reporting period include:
- All-share acquisition of Rift Petroleum Holdings Limited resulting in Tower’s entry into South Africa and Zambia
- Farm-in to Block-2B, onshore Kenya, giving Tower exposure to the drill-ready Badada-1 well scheduled to be spud in late 2014/early 2015
- Total cash funding during the period of £20.1 million (US$33.3 million) including an Institutional placing to raise £19.3 million (US$32.0 million), before expenses, at a price of 3.5 pence per share
- Operational developments during the reporting period include:
- Drilling of the unsuccessful Welwitschia-1A exploration well in the Walvis Basin, offshore Namibia
- Developments following the reporting period include:
- Post well studies continue on the Namibia Licence 0010 and conditional application made for the next Exploration Period; drilling and other costs being disputed between the non-operating parties and the operator.
- Geological fieldwork in Blocks 40 and 41, Zambia, was completed in August 2014 and evaluation of samples and information is underway.
- Ongoing processing and interpretation of 3D seismic acquired over the Algoa-Gamtoos licence, offshore South Africa, plus reprocessing and merge of older 3D survey. Nearby Brulpadda-1AX well spud in July by Total.
- Preparation for the drilling of the potentially play-opening Badada-1 well, Block 2B, Kenya, including the ordering of long-lead items. Encouraging result from Sala-1 well in the same basin, which encouragingly found hydrocarbons.
- Continuing integration of new assets and work on new ventures including two new applications.
Graeme Thomson, CEO, commented “This has already been an extremely busy year for the Company. The first-half of 2014 saw us participate in the drilling of the Welwitschia well and our new business drive came to fruition with the acquisition of Rift Petroleum and our farm-in to Block 2B in Kenya. Whilst the potential upside of Welwitschia was clear, we were conscious of the high-risk nature of all frontier exploration, and instigated a programme of portfolio diversification which maintained Tower’s focus on game-changing exploration opportunities while at the same time mitigating the reliance on Namibia. Despite the Namibia drilling programme being a disappointment for us, our near term drilling in Kenya is evidence of the prudent early steps which were taken to turn Tower into a pan-African explorer with a broadening portfolio of high-impact exploration opportunities.”
Graeme Thomson (CEO)
Nigel Quinton (Head of Exploration)
Andrew Matharu (VP – Corporate Affairs)
+44 20 7253 6639
Peel Hunt LLP (Nominated Adviser and Joint Broker)
Richard Crichton/Charles Batten
+44 20 7418 8900
GMP Securities Europe LLP (Joint Broker)
Rob Collins/Liz Williamson
+44 20 7647 2800
Chris McMahon/Peter Reilly
+44 20 7016 9572