Tower Resources rises on drill funding

Tower Resources, the Africa focused oil and gas explorer, is up 2.3% this morning on news of a new financing agreement.Tower has tapped investment fund manager, Yorkville Advisors, for an initial $3.35m loan, with the capacity to increase the amount to $6.125m if required.The loan is backed by an equity distribution agreement which will be used for repayment.Tower needs the money to pay for drilling at its Mvule-1 well in Uganda.Tower's Chief Executive, Peter Kingston, said of the deal:"The arrangement provides flexible funding options which represent the best and most cost effective opportunity to drill the highly prospective Mvule-1 well. If successful, the well has the potential to create a great deal of value for our shareholders."Today's announcement claims Mvule-1 is intended to test an estimated recoverable potential in Uganda of 80 million barrels of oil.Tower's share price has dropped 41% in the last 12 months.BS Tower Resources