Tower Resources PLC (AIM:TRP, FRA:ULF1) said it remains confident that the company and its investors "will reap the benefits of patience", as the small-cap continues to await approvals on farm-outs designed to fund work in Cameroon and Namibia.
At the same time, Tower noted that 2026 had begun with a positive period for oil prices, and it has undertaken a considerable amount of work to ensure that once approvals have been issued, it will be operationally ready.
Commenting on the sector backdrop, chief executive Jeremy Asher commented: "We understand that many banks, analysts and larger oil companies are raising both their external and internal forecasts for forward Brent crude oil, and this, together with the greater levels of cash and equity in the industry, is also significantly improving asset values."
In terms of financial results, Tower reported a wider annual loss after taking a non-cash impairment on its South African licence.
It posted a loss after tax of US$18.49 million for the year, including a US$13.98 million impairment against the Algoa-Gamtoos licence, where regulatory uncertainty over environmental rules has slowed plans for seismic acquisition.
Tower noted that it will need to complete the agreed Cameroon farm-out with Prime Global Energies, another asset-level transaction, or raise further funds “within the coming months” to meet liabilities as they fall due, particularly around the Cameroon drilling programme.
The deals see Prime agree to take a 42.5% non-operated interest in the Thali licence in Cameroon and contribute US$15 million toward the work programme, including the NJOM-3 well. It has also agreed to take 25% of PEL96 offshore Namibia, with Tower expecting US$4.4 million in total cash from the related transactions (when they complete).
Tower added that a Q4 2026 spud for NJOM-3 remains possible, though the actual timeline depends on receiving approvals soon enough to meet service company lead times.