Tower Resources Raises £1.04 Through Open Offer

Tower Resources plc  , the AIM listed Africa focused oil and gas exploration company, announced on 25 July 2013 the details of the firm £9.0m Placing at 1.125 pence per share and the Open Offer of up to £4.1m at 1.125 pence per share.

The Open Offer has now closed in accordance with its terms. The Company has received valid acceptances from non-Placee Qualifying Shareholders, including for excess applications, in respect of 89,106,104 Open Offer Shares. This represents 24.7 per cent of the maximum Open Offer Shares available under the Open Offer and applications from 43.5% of the number of registered qualifying shareholders. The Company has therefore raised gross proceeds of approximately £1.04 million through the Open Offer.

Application has been made for these 89,106,104 Open Offer Shares, which will rank pari passu in all respects with the existing Ordinary Shares, to be admitted to trading on the AIM Market of the London Stock Exchange. It is expected that Admission of the Open Offer Shares will occur and dealings will commence at 8.00 a.m. on 16 August 2013.

Following Admission of the Open Offer Shares and in accordance with Disclosure and Transparency Rules, the Company’s issued ordinary share capital is now comprised of 2,516,512,515 Ordinary Shares of 0.1 pence each with voting rights.

Graeme Thomson, Chief Executive Officer of Tower, said:

“We are very pleased with the success of the Open Offer which has enabled our smaller shareholders to invest on the same basis as the Placees. Adjusting for the significant portion of the register represented by Directors and Placees, who subscribed through the firm Placing, this represents an impressive commitment by other eligible shareholders for which we are grateful. The proceeds will help the Company to move more quickly to capitalise on the exciting new business opportunities we are continuing to pursue in Africa”.

The proceeds of the Placing and the Open Offer will be used to fund the Company’s share of the 2013 costs associated with the Welwitschia-1 well in Namibia.

Tower’s primary focus is its 30% working interest in the 0010 Licence offshore Namibia. The 0010 Licence consists of three contiguous exploration Blocks (1910A, 1911 and 2011A which cover an area of approximately 23,000 sq km offshore Namibia, in water depths ranging from 200 to 3,000 metres.
An independent CPR completed in June 2011 concluded a Gross Unrisked Best Estimate of 12,284 MMstb (oil and liquids) and 19,164 BCF (gas) on the 0010 Licence (in a volatile oil scenario).

The drilling of the Welwitschia-1 well is now planned to commence in mid-February 2014 and a firm rig is in place, drilling location agreed, site survey largely completed and longest lead items are being manufactured.

After a competitive process to scour the market for the most suitable rig for this exploration well, the Joint Venture has formally approved the use of the new-build Rowan Renaissance, which Repsol has secured on a 3 year contract for international work. Repsol will take delivery of the rig at the end of December 2013 and it will move directly to Namibia whilst undergoing further trials and crew familiarisation activities.