Tower Resources plc (the “Company” or “Tower” (TRP.L, TRP LN)), the AIM-listed Africa-focussed oil and gas exploration company, announces an Operational Update and its Interim Results for the six months ended 30 June 2015.
- Signing in September 2015 of the Thali Block PSC, located in the prolific proven producing Niger delta, offshore Cameroon; Tower is now reviewing existing discoveries (7 million bbls) and upside, as well as planning for H1 2016 3D seismic;
- Institutional placing in July 2015 raising approximately £5.2 million (US$8.0 million), after expenses, at a price of 0.19 pence per share: Key support from M&G Investments who now hold an 18% interest in the enlarged share capital and directors, consultants and employees who now hold a 15%+ interest;
- Completion of the Company’s Initial Period commitments in Blocks 40 and 41 of the frontier Zambezi basin, Zambia, with encouraging results;
- Application for new licences covering PEL0010 and other areas submitted to the Namibian Ministry of Mines and Energy following PEL0010 relinquishment notice being submitted by the Operator, Repsol;
- Drilling of the unsuccessful Badada-1 exploration well in the Block-2B, Anza Basin, onshore Kenya. Premier Oil plc (55%) and Tower (15%) have given notice to withdraw from the licence;
- Cost reductions including closure of regional East Africa office in Uganda and relocation of Tower’s corporate office; and
- Appointment to the Board of highly experienced technical experts, Phil Frank as Independent Non-Executive Director and Nigel Quinton as Exploration Director.
Graeme Thomson, CEO, commented “Our September entry into the Cameroon shallow waters marks a shift in our risk profile from frontier towards proven producing basins and introduces an asset with existing discoveries and significant upside to the Tower portfolio. In Namibia, we have a number of applications in process as we seek to build our acreage position in what remains a hugely underexplored but highly prospective area. Our early stage field work in Zambia has been encouraging, and we have now received approvals in South Africa to move into the next licence stage on Algoa-Gamtoos. These positive developments have been made possible largely through the support of existing and major new institutional shareholders and the unstinting efforts of the directors, employees and consultants, for which we are grateful.
We have now refocussed our portfolio and resources to areas predominantly on the Atlantic Margin where we are confident we can add value even in this difficult market. Accordingly, we have withdrawn from areas where we feel there is no medium-term likelihood of commercially worthwhile success. Our near-term commitments are low, and yet we have significant working interest holdings which we aim to farm down as appropriate to manage our risk-reward position. Tower intends to take advantage of the current difficulties in the sector to continue to assemble a high quality acreage portfolio in our focus areas.”
Jeremy Asher (Chairman)
Graeme Thomson (CEO)
Andrew Matharu (VP – Corporate Affairs)
+44 20 7253 6639
Peel Hunt LLP (Nominated Adviser and Joint Broker)
Richard Crichton/Ross Allister
+44 20 7418 8900
GMP Securities Europe LLP (Joint Broker)
Rob Collins/Emily Morris
+44 20 7647 2800
Chris McMahon/ Alex Aleksandrov
+44 20 7016 9572