Nodding Donkey

WFW advises Tower Resources on an acquisition, farm-in and £19m placing

10 April 2014

Watson, Farley & Williams (“WFW”), a leading international law firm, is pleased to announce that it has advised London-based oil and gas exploration company Tower Resources plc (“Tower Resources”) on three concurrent “transformational” transactions; its £19.3 million (US$32m) placing and subscription, proposed acquisition of Rift Petroleum Holdings Limited (“Rift Petroleum”) and proposed farm-in to Block 2B onshore Kenya alongside Taipan Resources Inc (“Taipan Resources”).

AIM-listed Tower Resources plans to raise £19.3m by way of a placing with certain existing and new investors of 550,000,000 new ordinary shares at a price of 3.5p per placing share. An application has been made for the placing shares to be admitted to trading on AIM. Expectations are that the placing shares will become effective and dealings will commence on AIM on April 14, 2014.

The proceeds of the placing will be used to fund ongoing costs associated with the all-share acquisition of Rift Petroleum, Tower Resources’ remaining costs associated with the Welwitschia-1 well in Namibia, and the proposed farm-in to Block 2B, onshore Kenya. The farm-in will be undertaken alongside Premier Oil and Taipan Resources. According to Tower Resources’, the completion of these “transformational transactions will create a diversified African portfolio” for the company.

In 2013, WFW advised Tower Resources on its acquisition of Wilton Petroleum Limited, and related placing and open offer. WFW also advised Tower Resources on its 2012 acquisition of an additional 15% interest in Namibian oil and gas licence 0010 and related petroleum agreement, and a placing to institutional and other investors.

The WFW deal team was led by London Corporate partner and Head of Natural Resources Jan Mellmann, supported by associates Sarah Williamson and Richard O’Brien, trainee solicitor Joe Osgerby-Lacey, and WFW Oil & Gas senior associate Heike Trischmann.

Tower Resources CEO Graeme Thomson, commented: “Tower highly values the relationship with WFW. Their advice is always given clearly and effectively, their work consistently of a high quality. This recent very complex triple transaction required an exceptional dedication within tight time-lines, was multi-jurisdictional and multi-faceted. Their support was instrumental to the successful outcomes.”

WFW partner Jan Mellmann, commented: “Tower Resources is a valued long-term client. We are delighted to advise them on these three significant deals, which mark the next steps in the company’s evolution and will help transform and diversify the company’s oil and gas portfolio into a pan-African offering.”