Results of AGM and Corporate Update

RNS Number : 1473I

Tower Resources PLC

27 May 2014

 



Tower Resources plc

Results of AGM and Corporate Update

27 May 2014

Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)), the AIM-listed Africa-focussed oil and gas exploration company, announces that at the Annual General Meeting of the Company, which took place at 3pm today, all resolutions put to shareholders were duly passed.

In addition the Company is also pleased to announce the following corporate updates:

Namibia PEL0010:

On 21 May 2014, Tower announced an update on its drilling operations offshore Namibia. The Company currently expects the fault relating to the BOP control system to be resolved shortly and for drilling of Welwitschia-1A to re-commence during the first week of June 2014 and to be completed within budget. Once drilling has recommenced the joint venture partners have declared that the well will continue to be classified as a "tight hole".

Kenya Block-2B:

On 9 April 2014, the Company announced that Tower Resources (Kenya) Limited, a wholly owned subsidiary of Tower, had agreed to acquire a 15% interest in Block 2B, Kenya, from Lion Petroleum Corp., a wholly owned subsidiary of Taipan Resources Inc. ("Taipan") (TSX.V: TPN), who hold 45% of the licence. The farm-in was conditional on consent from Premier Oil plc, who hold 55% of the licence. Tower is pleased to confirm that consent from Premier Oil plc has been received and anticipates that completion of the transaction should take place at the end of this week.

As announced on 9 April 2014, as consideration for the farm-in, Lion Petroleum Corp. (a subsidiary of Taipan) will receive at completion US$4.5 million cash and 4.5 million Ordinary Shares in Tower, with a second tranche of 4.5 million shares three months later. There is a contingent payment of US$1.0 million cash on the spudding of a second well.

Preparation for the first potentially play-opening well, Badada-1, on this Block are underway with spud expected towards the end of 2014 or early 2015.

Zambia:

As part of the acquisition of Rift Petroleum Limited ("Rift"), also announced on 9 April 2014, Tower acquired an 80% interest in, and operatorship of, Blocks 40 and 41 in the Zambesi basin, onshore Zambia. This is a frontier basin with a low commitment of geological fieldwork during the initial exploration period which expires in December 2014.  Tower recently met with the Ministry of Mines & Energy, the Zambian Environmental Management Agency (ZEMA) and the Zambian Geological Survey Department, and is now in the process of preparing for geological fieldwork in August of this year.   

Zambia is Tower's first operated licence area since its drilling operations in Uganda were completed in 2012 and thus marks another important milestone in the growth of the Company.

South Africa:

The acquisition of Rift also gave Tower exposure to one of the world's exploration hotspots - offshore South Africa.

The processing and interpretation of 3D seismic acquired over the Algoa-Gamtoos licence earlier in the year is currently underway, and is expected to be completed in Q3 2014.

It has been reported that Total are to spud the deep-water Brulpadda-1 exploration well in Block-11B/12B of the Outeniqua Basin, adjacent to the Algoa-Gamtoos block, in early June 2014. Total farmed into the Block 11B/12B in September 2013 for a 50% stake from Canadian Natural Resources Inc for cash and drilling commitments totalling US$255 million. Success with the Brulpadda-1 well could prove the deep-water potential of the Outeniqua Basin, which continues into the Algoa-Gamtoos licence area.

Cameroon:

Negotiations continue with the Cameroonian Government with regard to the Dissoni block offshore Cameroon following Tower's selection as preferred bidder in a licence round held in 2013. The block is located in the Rio Del Rey Basin, which is an extension of the Niger Delta play systems, and is adjacent to blocks with existing, long term production. Its prospectivity has been enhanced by the 2012 Oak discovery by Glencore, located in the adjacent Bolongo block. Tower hopes that a Production Sharing Contract can be agreed soon and that 3D seismic acquisition can commence in early 2015.

Jeremy Asher, Chairman, commented:  "Tower has been transformed in the last year. Our dedicated team has assembled a diversified exploration portfolio in sub-Saharan Africa, with a mixture of fully funded high-upside near-term drilling and other exploration interests at various stages of maturity. This is the most exciting time for the Company since I first became a major shareholder in 2006".

Contacts

Tower Resources plc

Graeme Thomson (CEO)
Andrew Matharu (VP - Corporate Affairs)
[phone]

Peel Hunt LLP (Nominated Adviser and Joint Broker)

Richard Crichton/Charles Batten
[phone]

GMP Securities Europe LLP (Joint Broker)

Rob Collins/Liz Williamson
[phone]

Vigo Communications

Chris McMahon/ Peter Reilly
[phone]

Notes:

With respect to the consideration shares payable to Lion Petroleum Corp. noted above: 

Application has been made to the London Stock Exchange for 4.5 million Ordinary Shares in Tower Resources to be admitted to trading on AIM.  The shares will rank pari passu in all respects with the Company's existing Ordinary Shares.  It is expected that the admission will become effective and that trading in these Ordinary Shares will commence at 8.00 a.m. on 30 May 2014.

Following admission of the above 4.5 million Ordinary Shares, the Company's enlarged issued share capital will comprise of 3,775,274,427 Ordinary Shares of 0.1 pence each with voting rights.  This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

Tower Resources is due to issue a further 4.5 million Ordinary Shares in Tower Resources to Lion Petroleum Corp. three months following completion of the farm-in to Block 2B onshore Kenya.  At that time, Tower Resources will apply to the London Stock Exchange for these Ordinary Shares to be admitted to trading on AIM. 

 

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