Tower Resources PLC Financing Update and change of Joint Broker (1058W)
14 Agosto 2020 - 08:00AM
UK Regulatory
TIDMTRP
RNS Number : 1058W
Tower Resources PLC
14 August 2020
14 August 2020
Tower Resources plc
Financing Update and change of Joint Broker
Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)),
the AIM-listed oil and gas company with its focus on Africa, is
pleased to provide an update regarding the financing process in
respect of its Thali production-sharing contract (the "PSC") in
Cameroon conducted through its wholly-owned subsidiary Tower
Resources Cameroon SA (the "Operator").
In recent weeks the Company has been engaged in detailed
discussions regarding a loan facility for the Njonji development at
Thali. The proposed facility would provide up to US$10 million to
the Operator for the NJOM-3 well currently in progress, and,
subject to the results of that NJOM-3 well, the facility might then
be expanded to support the next three production wells and platform
planned for Njonji. The proposed facility would be secured by the
proceeds from the PSC.
As previously announced, the Company has an agreement with OilLR
Pty Ltd ("OilLR") for OilLR to farm in to the PSC to provide up to
US$7.5 million for the NJOM-3 well. OilLR has not yet made the
payment into escrow contemplated by that agreement, which means
that the Company has the option either to reduce OilLR's investment
to US$5 million or to terminate the agreement. The Company also
remains in discussions with another potential farm-in partner. The
Company is considering its options with regard to the OilLR
agreement in light of other discussions, notably regarding the
proposed US$10 million loan facility, and the terms of the
agreement do not set any deadline for the Company to declare its
options, apart from a planned completion date of 15 September
2020.
The Company also notes that its current Loan Facility, held by
Pegasus Petroleum Ltd, a company beneficially owned by the
Company's Chairman and CEO, Jeremy Asher, is due for repayment, and
it is currently in discussions regarding a further extension to
that Loan Facility, which it expects to conclude within the grace
period as announced on 1 July 2020.
Change of Joint Broker
Following the merger of the Company's joint broker, Whitman
Howard Limited, with Panmure Gordon, the Company is also pleased to
announce that it has novated its agreement with Whitman Howard in
favour of the new entity, Panmure Gordon (UK) Limited.
Jeremy Asher, Tower's Chairman and CEO, commented:
"We are very pleased that these discussions regarding a loan
facility for Thali have gained traction, because debt financing has
remained our preference since we first explored the idea last year.
The possibility of a facility that can be extended to cover the
next stage of work following NJOM-3 is especially attractive as it
would significantly reduce the work and time required between
drilling NJOM-3 and drilling the next three wells and achieving
first oil.
We must stress that these discussions are not yet concluded, but
they are material enough that they affect our other decisions
regarding farm-out investment, not least the amount of additional
funds we may need, and they also naturally affect the
decision-making for our potential farm-out partners. We hope to
bring these discussions to a conclusion as quickly as possible, but
I hope that shareholders will also understand that it is very
difficult to predict timeframes at the moment. Nevertheless, this
is an exciting time for Tower."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Contacts
Tower Resources plc +44 20 7157 9625
Jeremy Asher
Chairman and CEO
Andrew Matharu
VP - Corporate Affairs
SP Angel Corporate Finance
LLP
Nominated Adviser and
Joint Broker + 44 20 3470 0470
Stuart Gledhill
Caroline Rowe
Turner Pope Investments
(TPI) Limited
Joint Broker
Andy Thacker
Zoe Alexander + 44 20 3657 0050
Panmure Gordon (UK) Limited
Joint Broker
Nick Lovering
Hugh Rich + 44 20 7886 2500
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END
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