Tower Resources PLC
09 January 2007
Press Release
9 January 2007
Tower Resources Plc
Extraordinary General Meeting
Tower Resources Plc ('Tower' or the 'Company'), the AIM listed oil and gas
exploration and production company, has today posted a Circular to shareholders
convening an Extraordinary General Meeting of the Company on 1 February 2007.
This follows the announcement on 21 December 2006 that the Company had entered
into the Agile Commitment Letter by which Agile agreed to subscribe for the
following two tranches of Ordinary Shares at a placing price of £0.02 per
Ordinary Share ('Placing Price'):
(a) the first tranche of 45,000,000 of the Placing Shares (the 'First Tranche');
and
(b) the second tranche of 7,000,000 of the Placing Shares (the 'Second Tranche
').
Agile's obligation to subscribe for the First Tranche is conditional only upon
admission of such shares to trading on AIM. The allotment of the First Tranche
to Agile and receipt by the Company of the proceeds of £900,000 are due on 31
January 2007. It is expected that dealings in the First Tranche on AIM will
commence at 8.00 a.m. on 5 February 2007.
Agile's obligation to subscribe for the Second Tranche is conditional on, inter
alia, the Company passing resolutions granting the Company's directors authority
to allot the Second Tranche pursuant to Sections 80 and 95 of the Companies Act
1985 and any other resolutions required to permit the allotment of the Second
Tranche. Subject to the passing of these resolutions, the allotment of the
Second Tranche to Agile and receipt by the Company of the proceeds of £140,000
are due by 30 April 2007. It is expected that, subject to the passing of those
resolutions (and assuming payment on 30 April 2007), dealings in the Second
Tranche on AIM will commence at 8.00 a.m. on 4 May 2007.
Update on Licences and use of proceeds
The Company is now into the second year of the first two-year Licence Periods
for both its 100% owned Ugandan and Namibian Licences. Comprehensive technical
evaluation has reinforced our view as to the prospectivity of both Licences.
Commitments over the course of 2007 could amount to US$8 million and the company
wishes to retain maximum flexibility to fully fund these commitments at its
discretion so as to be able to optimise commercial terms with potential farm-in
partners and to retain substantial interests where desirable. Farm-out
activities have been underway for the Uganda Licence, Block EA5, for some months
and there has been significant interest and commercial terms have been discussed
with a small number of companies. The farm-out process has only recently begun
for the Namibia Licence but serious interest has already been attracted.
The Company intends to apply the proceeds of the Agile Placing to meet
operational commitments as they arise in 2007, to invest in the expansion of its
oil and gas portfolio should partners be confirmed who will meet costs on
existing Licences and for general working capital purposes.
A copy of the circular being sent to shareholders is available free of charge
from the offices of Corporate Synergy Plc, 30 Old Broad Street, London EC2N 1HT.
For further information, please contact:
Tower Resources plc www.towerresources.co.uk
Peter Kingston, Executive Director Mobile: 07802 804852
Corporate Synergy plc
John Prior 020 7448 4400
Aquila Financial Limited
Peter Reilly 020 7202 2601
Ross Bethell 020 7202 2603
www.aquila-financial.com
This information is provided by RNS
The company news service from the London Stock Exchange