Tower Resources PLC (AIM:TRP) investors reacted positively on Monday, with the shares up more than 6%, after it confirmed forward momentum with the planned NJOM-3 well offshore Senegal.
The AIM-quoted firm this morning announced it had agreed a modest expansion to its bridge loan facility with Prime Resources Limited, increasing by £250,000 to £1 million, as the company continues to advance towards a fourth-quarter spud for its NJOM-3 appraisal well, on the Thali licence offshore Cameroon
"The purpose of the Bridge Loan has been to provide the company with working capital flexibility in preparation for the drilling of the NJOM-3 well on the Thali license in Cameroon," chief executive Jeremy Asher said.
"We are still anticipating spudding the NJOM-3 well in Q4 2025, although this is now quite a tight schedule".
Asher added: "The Prime Minister of the Republic of Cameroon has issued instructions for the grant of the extension of the initial exploration period of the Thali license and the approval of the farm-out to Prime Global Energies Limited, and the process is ongoing.
"Therefore, although we expect to receive the formal documentation of these approvals and completion of the farm-out presently, it is important that we keep the current work streams on track in the meantime, in order to minimise delays to the drilling schedule."
The loan carries 15% annual interest and is convertible into shares if not repaid within 12 months.
“Tower is in a strong position, subject to completing the two transformational farm-out agreements announced in January,” stockbroker SP Angel said in a note.
The stockbroker added: “With Prime’s funding in place, Tower should be able to drill the NJOM-3 appraisal well in 4Q25 at Njonji, which is expected to confirm the commerciality of the oil discovery and de-risk a future fast-track development.
In London, Tower shares climbed 6.4% changing hands at 0.038p, valuing the business at just under £11 million.