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Tower Resources PLC - Update on Bridging Loan Facility

RNS Number : 2430O
Tower Resources PLC
01 October 2019
 

1 October 2019

Tower Resources plc

Update on Bridging Loan Facility

 

Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN), the AIM-listed oil and gas company with a focus on Africa, is pleased to provide an update in respect of its Bridging Loan Facility ("Facility") of $750,000 details of which were first announced on 16 April 2019.

 

The Company has agreed with the majority of the Facility lenders to extend further the repayment of the Facility (the "Extension"), but was unable to reach a couple of the lenders yesterday to confirm their agreement. The Company has no reason to believe they would not agree with the position of the other Facility lenders, and will confirm the terms of the extension when they are agreed with all the Facility lenders. The purpose of the extension is to complete other financing discussions, which are currently in progress. The Company continues to manage its limited cash resources carefully as these discussions are progressed.  

 

The Bridging Loan will in the meantime continue to have a preferential right of repayment from any future financing in excess of $750,000, and will remain secured by the Company with interest due of 1% per month (accrued and paid on repayment) along with a fixed and floating charge over the Company's assets.

 

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

[email protected]

Jeremy Asher
Chairman and CEO

 

 

Andrew Matharu
VP - Corporate Affairs

 

 

 

SP Angel Corporate Finance LLP
Nominated Adviser

+44 20 3470 0470

Stuart Gledhill

Caroline Rowe

 

 

 

Whitman Howard Limited
Joint Broker

Nick Lovering

Hugh Rich

 

+44 20 7659 1234

Turner Pope Investments (TPI) Limited
Joint Broker

Zoe Alexander

Andy Thacker

 

+44 20 3657 0050

Yellow Jersey PR Limited

 

Sarah Hollins

Henry Wilkinson

+44 7764 947 137

+44 7951 402 336

 

Notes:

 

Tower Resources Cameroon S.A, a wholly owned subsidiary of Tower Resources plc, holds a 100% interest in the shallow water Thali (formerly known as "Dissoni") Production Sharing Contract (PSC), in the Rio del Rey basin, offshore Cameroon.  Tower was awarded the PSC on 15 September 2015 for an Initial Exploration Period of 3 years, which has been extended for a further year ending 15 September 2019 and a further extension is now pending.

 

The Thali PSC covers an area of 119.2 km², with water depths ranging from 8 to 48 metres, and lies in the prolific Rio del Rey basin, in the eastern part of the Niger Delta. The Rio del Rey basin has, to date, produced over one billion barrels of oil and has estimated remaining reserves of 1.2 billion barrels of oil equivalent ("boe"), primarily within depths of less than 2,000 metres. The Rio del Rey is a sub-basin of the Niger Delta, an area in which over 34.5 billion barrels of oil has been discovered, with 2.5 billion boe attributed to the Cameroonian section.

 

An independent Reserve Report conducted by Oilfield International Limited (OIL) has highlighted the contingent and potential resources on the Thali licence and the associated Expected Monetary Value (EMV) as follows:

·    Gross mean contingent resources of 18 MMbbls of oil across the proven Njonji-1 and Njonji-2 fault blocks;

·    Gross mean prospective resources of 20 MMbbls of oil across the Njonji South and Njonji South-West fault blocks;

·    Gross mean prospective resources of 111 MMbbls of oil across four identified prospects located in the Dissoni South and Idenao areas in the northern part of the Thali licence;

·    Calculated EMV10s of US$118 million for the contingent resources, and US$82 million for the prospective resources, respectively.

 

In accordance with the guidelines for the AIM market of the London Stock Exchange, Dr Mark Enfield, BSc, PhD, FGS, Advisor to the Board of Tower Resources plc, who has over 30 years' experience in the oil & gas industry, is the qualified person that has reviewed and approved the technical content of this announcement.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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