Tower Resources PLC (LON:TRP) will resume trading on AIM today after the Africa-focused oil explorer raised £2.1mln through a placing backed by directors and financier Lansdowne.
The shares were suspended in May due to uncertainty over Tower’s financial position.
READ: Tower Resources ready to advance exploration of Thali block
Jeremy Asher, chairman and chief executive, has agreed to subscribe half of his 2017 salary of £150,000 for new shares in Tower in addition to the placing.
Tower’s two other directors Peter Taylor and Graeme Thomson subscribed for 5mln and 1mln shares respectively in the placing.
The money will be used for another round of work at the Thali licence in Cameroon.
Asher said: “We can now move forward with the agreed work programme on the Thali license, including the reprocessing of existing 3D data, with a view to finalising our priorities for drilling.
“With contingent Oil-In-Place (OIP) estimated at 39 mln barrels (Pmean, gross) already discovered on the block, we now expect to be in a position to make a drilling decision on this high-quality discovered oil field later in 2018 and so be in a position to take advantage of the low cost of rigs and services in the current market. "
READ: Tower Resources “weathered the storm” in first half
The placing was priced at 1p per share with financier Lansdowne subscribing for 30mln of the 210mln shares issued.
Following the placing Taylor’s stake will 4.4% and Thomson’s 1.5%.
Tower also appointed SP Angel as its new nomad while veteran geologist David Thomas has joined as a non-executive director.