Tower Resources releases 1H19 interim results

Highlights

• January 2019 placing of 170 million new ordinary shares at 1p to raise £1.7 million (gross), together with issuance of placing warrants, broker warrants, and agreement of directors to accept warrants in lieu of fees.
• February 2019 announcement by Total of a 1 billion boe gas-condensate discovery at its Brulpadda well in the Outeniqua basin, on its Blocks 11B/12B in South Africa, which is immediately adjacent to the Company's 50%-owned Algoa-Gamtoos licence.
• Release of operator's estimates of 510 million boe of mean unrisked recoverable resource potential in the Algoa-Gamtoos licence, including a 346 million boe prospect in the Outeniqua basin section of the license.
• April 2019 announcement of a Bridging Loan of US$750 000, with associated warrants, provided by Pegasus Petroleum Ltd and other parties to fund working capital while the Company pursues a farm-out of its Thali licence in Cameroon.
• June 2019 subscription of 15 million new ordinary shares at 1p to raise £150 000 of further working capital.

Post reporting period events

• July 2019 award in the company's favour by the First-Tier Tribunal (Tax Chamber) in respect of the company's VAT dispute with HMRC (where HMRC has subsequently requested leave to appeal to the Higher Tribunal).
• Ongoing well planning and preparatory work for the intended 2019 Thali drilling programme in Cameroon.
• Continuation of farm-out processes in respect of both the Thali licence in Cameroon and the Algoa-Gamtoos licence in South Africa.
• Substantial farm-out discussions in respect of Thali.
• Extension of bridging loan until 31 August 2019 with grace period until 30 September 2019.
• Now seeking funding for working capital and to repay bridging loan.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/12092019/tower-resources-releases-1h19-interim-results/