Big picture - Why invest in Tower Resources PLC
Tower Resources PLC Snapshot
Tower Resources was first admitted to trading on the London Stock Exchange (AIM) on 13 January 2005. The Company was subsequently re-admitted to AIM on 17 June 2006 following its acquisition of Neptune Petroleum Limited whereby Tower Resources acquired licenses in Namibia and Uganda.
Since the time of its listing Tower Resources has undertaken a number of acquisitions and farm-in transactions which have transformed the company’s portfolio to deliver an active and balanced Sub-Saharan African asset base.
Our strategy continues to be to shift our focus towards lower risk exploration and development within proven basins, best characterised by our 2015 signature of the Thali PSC in the Rio Del Rey basin, offshore Cameroon. We have not abandoned high risk/reward exploration altogether: we still have our licenses in Zambia and South Africa, for example, and we also have a new license under discussion in Namibia. The Thali PSC also has a high reward upside in the deeper zones, which have not yet been tested by past drilling, as Exxon’s Zafira discovery to the South-West of our block has demonstrated. We continue to believe that all of our assets are attractive and valuable. But our strategy is to shift the balance of our investment, and to focus our current investment on the lower risk, earlier reward opportunities like Thali, or other appraisal and development opportunities, during this phase of the market cycle.
Entry: September 2015
100% of Thali PSC
Rio del Rey Basin
Operator: Tower Resources Cameroon S.A
Initial Exploration Period (3 years)
Tower Resources Cameroon S.A, a wholly-owned subsidiary of Tower Resources plc, holds a 100% interest in the shallow water Thali (formerly known as “Dissoni”) Production Sharing Contract (PSC), in the Rio del Rey basin, offshore Cameroon. Tower was awarded the PSC on 15 September 2015.
Further details here
Algoa-Gamtoos Block (50% Operated)
Operator: New Age Energy Algoa (Pty) Ltd,
New African Global Energy SA (Pty) Ltd
Licence Size: 11,809km²
1st Renewal Period (2 Years)
Through its wholly-owned subsidiary, Rift Petroleum Limited, Tower Resources holds a 50% interest in the Algoa-Gamtoos licence, offshore South Africa. Tower acquired its non-operated interest in the Algoa-Gamtoos licence through the all share acquisition of privately-owned Rift Petroleum Limited in April 2014.
Further details here
Guelta, Imlili and Bojador (5% – 10% ORRI)
1 Onshore/2 Offshore
Operator: Hague and London Oil plc (“HALO”, 50%).
Licence size 72,698km²
As part of a portfolio review Tower Resources sold its interests in the Guelta, Imlili and Bojador blocks in the Saharawi Arab Democratic Republic (SADR) in January 2017 to Red Rio Petroleum Ltd in exchange for an over-riding royalty interest (ORRI) ranging from 5% – 10%; depending on the licence. The licences continue to be Operated by Hague and London Oil plc (“HALO”, 50%).
Further details here
Entry: April 2014
Blocks 40 & 41 (100% Operated)
Operator: Rift Petroleum (Zambia) Ltd
Secondary Exploration Period (3 years)
Through its wholly-owned subsidiary Rift Petroleum (Zambia) Limited, Tower operates a 100% interest in Blocks 40 and 41 of the frontier Zambezi Basin, which cover a gross area of 6,946km² and forms part of a frontier rift basin adjacent to the East Africa Rift Basins system.
Further details here
Jeremy Asher BSc (Econ), MBA, MEI - Chairman and Chief Executive Officer
Jeremy Asher, aged 59, in addition to his role in Tower, is Chairman of Agile Energy Limited, a privately held energy investment company, and a director of several other energy-related companies including NYSE-listed Pacific Drilling SA, where he chairs the Remuneration Committee, Better Place BV (a private company developing infrastructure to support mass deployment of electric vehicles), and until 2010, AIM-listed Gulf Keystone Petroleum Ltd. He is also a member of the London Business School's UK regional advisory board and the Engineering Advisory Board of Imperial Innovations, the commercial arm of Imperial College. Following several years as a management consultant, he ran the global oil products trading business at Glencore AG and then acquired, developed and sold the 275,000 b/d Beta oil refinery at Wilhelmshaven in Germany. Between 1998 and 2001 he was CEO of PA Consulting Group, and since that time has been an investor and director in various public and private companies.
Graeme Thomson FCA, MA, BA, MEI, MIoD - Non-Executive Director
Graeme Thomson, aged 60, in addition to serving as CEO of Tower, is a non-executive director of Desire Petroleum plc, where he chairs the Audit Committee. He was a non-executive director of Frontier Resources International plc from 2011 to 2012. From 2009-12 he advised a range of energy and other companies on their financial and commercial affairs. From 2000 to 2009 he was a founder, Company Secretary, CFO and finally CEO of Sterling Energy plc, and from 2005 2008 a non-executive director of Forum Energy plc. He was CFO and Company Secretary of Dragon Oil plc from 1992 to 1999. In 1989 he co-led a management buy-in to AmBrit International plc, which was taken over in 1992. He was a runner-up for Finance Director of the Year at the 2007 QCA Awards.
Peter Taylor BSc (Hons), C.Eng, MIMechE - Non-Executive Director
Peter Taylor, aged 70, is Joint Chairman of TM Services Ltd, an international oil and gas consulting company. In 1991 he was a founder and director of TM Oil Productions Ltd which became Dana Petroleum Plc. and one of the leading UK oil and gas exploration companies before being taken over in 2010 by KNOC for £2bn. He was founder member of Consort Resources Ltd, a significant North Sea gas transportation and production company and was also a founder and director of Planet Oil Ltd, which reversed into Hardman Resources in 1998. Planet held various interests including Mauritania, Guyane (formerly French Guiana) and Uganda. He was a founding member and director of Star Petroleum Plc which was incorporated into Global Petroleum Ltd, and also a founding member of Neptune Petroleum Ltd which was acquired by Tower. He is a director of Global Petroleum Ltd, listed on the ASX and AIM. He was co-founder of Jupiter Petroleum Ltd, which has assets in offshore Namibia and Juan de Nova. Jupiter was sold to Global in 2011. He is Chairman of the Remuneration Committee.
David M Thomas
Independent Non-Executive Director
Mr Thomas is a geologist with over 30 years of experience in the oil and gas industry, primarily in North and West Africa. After working in Libya for Occidental Petroleum and Tunisia for Tenneco (now British Gas) in the 1970s and 1980s, Mr Thomas returned to London as International Chief Geologist for Kuwait Petroleum Corporation and later founded a consulting company offering a range of petroleum advisory services. Mr Thomas served most recently as managing director of MedOil PLC and has been a director of AIM-quoted Thalassa Holdings since 2008.
In accordance with AIM Rule 26 the following investors are identified as having a significant (3% or more) interest in the Company.
|David & Monique Newlands||23,753,000||6.3%|
The current number of share options outstanding are 1,626,800 (0.4% of the fully diluted share capital).
Tower Resources plc
140 Buckingham Palace Road
London SW1W 9SA
Tel: +44 20 7157 9625
Nominated Adviser and Broker
SP Angel Corporate Finance LLP
35 Maddox Street
London W1S 2PP
Auditors and Reporting Accountants
UHY Hacker Young
4 Thomas More Square
London E1W 1YW
Solicitors to the Company
Watson, Farley & Williams LLP
15 Appold Street
London EC2A 2HB
Link Market Services Limited
34 Beckenham Road
Kent BR3 4TV
Barclays Bank Plc
One Churchill Place
London E14 5HP