AIM-listed Tower Resources, the Africa-focused energy company, has announced its preliminary results for the 12 months ended 31 December 2023.
Highlights
- Cameroon operational update covering:
- Application for a one-year extension of the initial exploration period of the Production Sharing Contract ('PSC'), following positive discussions with the Minister of Mines, Industry and Technological Development and the Prime Minister of the Republic of Cameroon
- Ongoing discussions with rig owners and operators with the aim to secure rig availability to drill at NJOM-3
- Ongoing negotiations for a term loan with BGFI Bank Group and asset-level financing with several other parties
- Updated resource estimates and risks for the reservoirs connected to the NJOM-1 and the NJOM-2 discovery wells, substantially lowering risk attributed to PS9 Sup and PS3 HW reservoirs, and increasing total risked pMean prospective resources to 35.4 million bbls
- Deployment of software to conduct detailed attribute analysis of the reprocessed 3D seismic data to identify the oil and gas elements of the reservoirs in the Njonji-1 and Njonji-2 fault blocks, resulting in a clearer picture of the pay zones in both fault blocks.
- Namibia technical update covering:
- A basin and thermal maturity study to significantly progress the understanding of the hydrocarbon prospectivity of the license. The basin modelling study has been carefully integrated with seismic sequence stratigraphic interpretation of the large 2D seismic datasets and combined with the well data within PEL96 and available well data elsewhere in the Walvis Basin region.
- The integrated analysis of the seismic, wells and the basin modelling results showing clear evidence of a working petroleum system present within the Dolphin Graben in PEL 96; in the form of oil recovered from cores in the 1911/15-1 well and direct hydrocarbon indicators (DHIs) observed on seismic.
- The objectives of the basin modelling study were to assess the critical elements of the hydrocarbon charging system, i.e. thermal maturity, distribution of generative source kitchens, volumetric estimation of generative capacity of mature source rocks, timing of generation/expulsion of hydrocarbons and mapping of migration pathways.
- An oil seep analysis to accompany the basin modelling work, and a review of the existing volumetric data on the prospects and leads that have already been identified
- The execution of a contract with Borr Drilling Limited for the hire of the Norve jack-up rig, one of Borr's fleet of high-specification drilling units, to drill the NJOM-3 well on Tower's Thali license in Cameroon in 2024.
- The completion of an institutional placing via an investment deed to Energy Exploration Capital Partners, LLC ("EEPC"), in January 2023 with an initial placing of $1.3 million at a price of 0.36p per share with additional follow-on commitments up to a total commitment of $6.0 million. As part of the placing commitment, additional tranches of share issues were made throughout 2023 raising an additional $556K at an issue price of between 0.028p and 0.12p per share.
- A placing and subscription of 4,600 million shares to raise £2.3 million ($2.9 million) at a price of 0.05p (0.06¢) per share announced in May 2023 together with the appointment of Axis Capital Markets Limited as joint broker to the Company.
- A subscription at a share price of 0.02p per share to raise £600k announced in December 2023 with proceeds receivable in January 2024.
- Cash balance at year-end of $21k (2022: $231k) prior to receipt of subscription proceeds
- 2023 full-year net administrative costs, excluding share-based payment charges, of $702k (2022: $631k)
Post-Reporting Period Events
4 January 2024: Share issuance in accordance with the terms of the investment deed with EEPC announced on 16 January 2023, of 440,567,445 ordinary shares of 0.001 pence each. The purchase price of 0.0225 pence per Ordinary Share for the settlement amount of $125,000 had been prepaid by EEPC.
4 January 2024: Issue of 350.9 million warrants in lieu of £60,000 (in aggregate) of Directors fees in respect of the period January-June 2024, to conserve the Company's working capital. The warrants are exercisable at a strike price of 0.03 pence per share. The warrants are exercisable for a period of five years from the date of issue.
8 February 2024: The Company received formal notification from the Minister of Mines, Industry and Technological Development in Cameroon of the extension of the First Exploration Period of the Thali production-sharing contract to 4 February 2025, in accordance with the Company's PSC and the Cameroon Petroleum Code, and with the approval of the President of the Republic of Cameroon. The Company's principal obligation during the First Exploration Period is the drilling of a single well which the Company intends to fulfil through the drilling of the NJOM-3 well during 2024.
9 February 2024: Share issuance in accordance with the terms of the investment deed with EEPC announced on 16 January 2023, of 396,825 ordinary shares of 0.001 pence each. The purchase price of 0.021 pence per Ordinary Share for the settlement amount of $105,000 had been prepaid by EEPC.
15 February 2024: The Company reached an agreement for the repayment of the outstanding balance owed to EECP, in accordance with the terms of the investment deed announced to the market on 16 January 2023. In addition, the Company also announced a Subscription to raise £600,000 via the issue of 3,333,333,333 shares at a price of 0.018p per share.
In addition to the events above, subsequent to the year-end the Company received notice that the third of its appeals to the First-Tier Tax Tribunal had been successful, resulting in a release of the remaining VAT provision and the receipt of remaining receivables.
Source: Tower Resources
