Tower Resources (LSE:TRP) reported its preliminary results for 2025, outlining advances across its African asset portfolio and measures taken to reinforce its financial position. The company continues to focus on developing its Thali licence in Cameroon while progressing exploration opportunities in Namibia and South Africa, seeking to capitalize on a favorable oil market environment.
Cameroon Farm-Out Supports Upcoming Drilling Activity
In Cameroon, Tower reached an agreement to farm out a 42.5% non-operated stake in the Thali licence to Prime Global Energies. Under the arrangement, Prime will contribute US$15 million toward the licence work programme, while a jack-up drilling rig has been secured for the planned NJOM-3 well.
The company is also pursuing a one-year extension to the licence’s initial exploration period. In parallel, Tower revised its commercial arrangements with Pegasus Petroleum, introducing a structure based on future production-linked payments and a significant share issuance designed to better align the interests of all parties as the project moves toward potential development.
Namibia Transactions Increase Exposure While Sharing Risk
Tower has also taken steps to expand its participation in Namibia’s offshore PEL96 licence by increasing its direct interest by 5%. At the same time, the company agreed to a 25% farm-in by Prime, which includes reimbursement of historical costs.
The Ministry of Industries, Mines and Energy (MIME) has confirmed the licence’s entry into its first renewal period, providing additional support for future exploration activities. Management believes the transaction structure allows Tower to maintain meaningful exposure to one of Africa’s most closely watched exploration regions while reducing funding requirements through partner participation.
Capital Raises Provide Liquidity for Strategic Priorities
To support ongoing operations, Tower implemented a series of financing initiatives during 2025 and early 2026. The company secured an unsecured convertible bridge loan facility of up to £1 million during 2025 and subsequently completed multiple equity subscriptions that raised more than £2.7 million.
The proceeds enabled the full repayment of the bridge loan and provided working capital to advance key licence commitments while awaiting regulatory approvals for the Cameroon and Namibia farm-out transactions. Although the funding programme resulted in substantial shareholder dilution, management views the additional capital as critical to maintaining momentum across its portfolio.
Financial Challenges Continue to Weigh on Outlook
Despite operational progress, Tower’s outlook remains constrained by its financial profile. The company continues to report no revenue generation, recurring losses and negative free cash flow, although leverage remains relatively low.
Technical indicators also remain weak, with the shares trading below major moving averages and momentum measures such as MACD remaining negative. Valuation metrics provide limited support given the company’s loss-making status and the absence of a dividend yield.
More About Tower Resources
Tower Resources is an AIM-listed oil and gas exploration and production company focused on developing a diversified portfolio of African energy assets.
The company’s strategy combines near-term development opportunities in Cameroon, aimed at generating future cash flow, with exploration projects in Namibia and South Africa. Through seismic acquisition and partner-led risk sharing, Tower seeks to unlock value from emerging hydrocarbon provinces across the continent.
Leave a Reply