Business
Completion of Wilton Petroleum Acquisition
Completion of Wilton Petroleum Acquisition.
About this update from Tower Resources Plc
[{"type":"text","content":"\n \nRNS Number : 3435P Tower Resources PLC 01 October 2013 \n \n\n1 October 2013\n \nTower Resources plc\nCompletion of Wilton Petroleum Acquisition\nFurther to the announcements made on 2 September and 25 September 2013, Tower Resources plc (the \"Company\" or \"Tower\" (TRP.L, TRP LN)), the AIM listed Africa focussed oil and gas exploration company, is pleased to announce the completion of the acquisition of Wilton Petroleum Limited (\"Wilton\"), subject to the Admission on the AIM market of the Consideration Shares.\nThe consideration for Wilton comprises a combination of US$1.75 million cash and 120 million ordinary shares in Tower (the \"Consideration Shares\"), locked-in for 12 months, which at yesterday's closing price valued Wilton at US$4.3 million.\nGraeme Thomson, Tower's CEO, commented: \"Under the terms of the Settlement Agreement, announced on 25 September 2013, Wilton has received US$6 million in cash. After estimated taxes the acquisition is, therefore, equivalent to Tower issuing 4.6% of its enlarged issued share capital at a premium of approximately 35% to yesterday's closing price of 1.35p per share. On completion Tower's current cash position will increase by US$4.25 million (before any taxes) to approximately US$18 million\". \nJeremy Asher, Tower's Chairman added \"The additional cash on our balance sheet strengthens our position with respect to our multi-billion barrel upside exploration well, Welwitschia-1, operated by Repsol offshore Namibia, where preparations continue on track for spud in February 2014. We also remain firmly committed to new ventures with near term drilling or early stage interests where we can keep initial cash outlays to reasonable levels, including in Madagascar and also in Cameroon where, following the recent licencing round, we have been invited to negotiate a new PSC\". \nApplication will been made for admission of the 120,000,000 Consideration Shares to the AIM market of the London Stock Exchange. The Consideration Shares will rank pari passu in all respects with the existing Tower ordinary shares. It is expected that admission of the Consideration Shares will occur and dealings will commence at 8.00 a.m. on or around 4 October 2013.\nFollowing admission of the Consideration Shares and in accordance with Disclosure and Transparency Rules...