Tower Resources to Invest $13.9 Million in Namibia Oil Drilling

Written by Makula Dunbar

Jul 26, 2013

Tower Resources plc, which is listed on the Alternative Investment Market AIM part of the London Stock Exchange, plans to raise US$13,9 million (about N$136 million) for oil drilling in Namibia. The drilling is expected to start in February 2014.

Tower said on Thursday that the proceeds of the placing and the open offer will be used to fund the company’s share of costs associated with the Welwitschia-1 well in Namibia, the cash consideration payable in respect of the acquisition of Wilton Petroleum Limited for general working capital to enhance the company’s ability to pursue its new ventures strategy.

Tower said it has has conditionally placed 802,343,266 new ordinary shares at a price of 1,125 pence per share to raise £9 million (US$13,9 million) by means of a placing by Peel Hunt LLP and GMP Securities Europe LLP. It is expected that admission of the Placing Shares will become effective and that dealings will commence in the placing shares on 30 July 2013.