RE: Shard loan29 Oct 2020 13:29
In mid-August, we were pleased to see the spudding of Total's Luiperd exploration well on Blocks 11B/12B offshore South Africa, following its successful 1-billion boe Brulpadda discovery on the same blocks. Africa Energy, a minority partner in the well, has said that it believes the chance of success of this well is over 80%, and we certainly hope this proves correct. The Luiperd well, if successful, will further de-risk the whole Outeniqua basin in South Africa. Tower, together with operator NewAge, hold the block immediately to the East of Total's blocks 11B/12B, which contains a substantial prospect in the Outeniqua basin, analogous to Brulpadda.
At the end of August 2020, we extended our loan facility provided by Pegasus Petroleum Ltd, and added a second loan facility on similar terms with Shard Merchant Capital Ltd as well as issuing new shares to Shard and to Pegasus for further cash and in lieu of past and future interest on those facilities. This provided the Company with, in aggregate, just under US$700,000 of additional funds net of fees, which provides us with further runway to get the NJOM-3 well underway, and its financing completed. I remain confident that this will be done.