The AIM-quoted firm hopes the cash, along with a significantly reduced cost base, will ease the group’s financial pressures for the time being at least.
Tower’s shares were suspended last month pending clarification of its financial position. Like most of the oil industry, Tower had been knocked by the “difficult” conditions in the sector brought on by the tumbling oil price.
Half of the £360,000 to be raised will come from the placing of 18mln new shares at 1p apiece, while the other £180,000 will come from an open offer to existing shareholders at the same price.
Certain directors have agreed to take part in the fundraise, Tower said.
While £360,000 is enough to keep the business afloat in the near-term, the explorer told investors it will likely need to raise a further £2mln or so over the coming year – mainly to fund obligations in respect of its Thali asset, offshore Cameroon.
Tower is still on the lookout for a partner for Thali, which it thinks is necessary in order to push ahead with the programme at the asset.
Last month’s share suspension came after its latest efforts to secure a farm-out deal stalled after the final deadline for signature of a heads of agreement was missed.
Tower recorded a loss for the 12 months to 31 December 2016 of US$23.3mln (2015: US$9.8mln).
Shares will remain suspended even after today’s raise and won’t be re-admitted to trading until there is “greater certainty” in regards to the company’s future prospects.