Tower Resources Regulatory News (TRP)

9 Jan 2007 07:01

Tower Resources PLC09 January 2007 Press Release 9 January 2007 Tower Resources Plc Extraordinary General Meeting Tower Resources Plc ("Tower" or the "Company"), the AIM listed oil and gasexploration and production company, has today posted a Circular to shareholdersconvening an Extraordinary General Meeting of the Company on 1 February 2007. This follows the announcement on 21 December 2006 that the Company had enteredinto the Agile Commitment Letter by which Agile agreed to subscribe for thefollowing two tranches of Ordinary Shares at a placing price of £0.02 perOrdinary Share ("Placing Price"): (a) the first tranche of 45,000,000 of the Placing Shares (the "First Tranche");and (b) the second tranche of 7,000,000 of the Placing Shares (the "Second Tranche"). Agile's obligation to subscribe for the First Tranche is conditional only uponadmission of such shares to trading on AIM. The allotment of the First Trancheto Agile and receipt by the Company of the proceeds of £900,000 are due on 31January 2007. It is expected that dealings in the First Tranche on AIM willcommence at 8.00 a.m. on 5 February 2007. Agile's obligation to subscribe for the Second Tranche is conditional on, interalia, the Company passing resolutions granting the Company's directors authorityto allot the Second Tranche pursuant to Sections 80 and 95 of the Companies Act1985 and any other resolutions required to permit the allotment of the SecondTranche. Subject to the passing of these resolutions, the allotment of theSecond Tranche to Agile and receipt by the Company of the proceeds of £140,000are due by 30 April 2007. It is expected that, subject to the passing of thoseresolutions (and assuming payment on 30 April 2007), dealings in the SecondTranche on AIM will commence at 8.00 a.m. on 4 May 2007. Update on Licences and use of proceeds The Company is now into the second year of the first two-year Licence Periodsfor both its 100% owned Ugandan and Namibian Licences. Comprehensive technicalevaluation has reinforced our view as to the prospectivity of both Licences.Commitments over the course of 2007 could amount to US$8 million and the companywishes to retain maximum flexibility to fully fund these commitments at itsdiscretion so as to be able to optimise commercial terms with potential farm-inpartners and to retain substantial interests where desirable. Farm-outactivities have been underway for the Uganda Licence, Block EA5, for some monthsand there has been significant interest and commercial terms have been discussedwith a small number of companies. The farm-out process has only recently begunfor the Namibia Licence but serious interest has already been attracted. The Company intends to apply the proceeds of the Agile Placing to meetoperational commitments as they arise in 2007, to invest in the expansion of itsoil and gas portfolio should partners be confirmed who will meet costs onexisting Licences and for general working capital purposes. A copy of the circular being sent to shareholders is available free of chargefrom the offices of Corporate Synergy Plc, 30 Old Broad Street, London EC2N 1HT. For further information, please contact: Tower Resources plc www.towerresources.co.ukPeter Kingston, Executive Director Mobile: 07802 804852 Corporate Synergy plcJohn Prior 020 7448 4400 Aquila Financial LimitedPeter Reilly 020 7202 2601Ross Bethell 020 7202 2603www.aquila-financial.com This information is provided by RNS The company news service from the London Stock Exchange