Tower Resources (LSE:TRP) has provided an update on regulatory steps tied to its farm-out agreements with Prime Global Energies in Cameroon and Namibia. The company expects to receive a one-year extension for the Thali licence offshore Cameroon and is also seeking accelerated approval for the transfer of a 25% interest in Namibia’s PEL96 licence. Once finalised, these approvals are intended to support plans to drill the NJOM-3 well in Cameroon later this year while strengthening Tower’s operational position across both upstream projects.
Alongside these developments, Tower has raised approximately £1.5 million through a discounted subscription involving more than 6.3 billion new shares. The majority of the funds will be used to repay a £1 million convertible bridge loan approaching maturity, with the remaining proceeds allocated to working capital. The fundraising substantially increases the company’s issued share capital and includes broker warrants issued to Axis Capital Markets, underlining the group’s continued reliance on equity funding as it advances exploration activity across its African portfolio.
The company’s overall outlook remains constrained by weak financial fundamentals, including the absence of revenue, recurring losses and ongoing negative free cash flow, despite relatively low leverage. Technical indicators also remain negative, with the share price trading below key moving averages and a bearish MACD signal. Valuation metrics provide limited support given negative earnings and the lack of dividend yield data.
More about Tower Resources
Tower Resources is an AIM-listed oil and gas exploration company focused on African energy assets. Its portfolio includes the Thali licence offshore Cameroon and the PEL96 licence in Namibia. The company’s strategy centres on partnering with regional and international operators—such as Prime Global Energies—to advance exploration drilling, data acquisition and development across its asset base.
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