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(Alliance News) - Tower Resources PLC on Friday said it has raised GBP1.5 million via a new placing of shares, to put towards its African energy projects.
The Westminster, London-based oil and gas company issued 576.9 million new ordinary shares at a price of 0.26p per share - a 29% discount to the closing share price on Thursday of 0.37p. Novum Securities Ltd acted as sole broker for the placing.
Tower Resources' share price fell by 18% to 0.30p each in London on Friday morning.
The proceeds will be used to fund maintenance and planning in its Cameroon drilling project, working programme costs in Namibia for a basin modelling study, and costs in its South African joint venture with New Age Energy Algoa Ltd. They will also be used as general working capital.
Following the placing, Tower Resources will have 2.7 billion shares issued overall.
"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. 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," said Chair and CEO Jeremy Asher.
"We also want to keep moving forward in Namibia and South Africa, so that we can capitalise on both the improving economics of our acreage positions and also further positive news around us. This does require us to raise capital at this time, though we continue to seek to keep share issues to a minimum."
By Elizabeth Winter; elizabethwinter@alliancenews.com
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