Times have been tough in oil sector in recent years, but prices of the black stuff have crept back up to around US$70 and money has started to trickle back into the sector.
Tower itself raised US$3.0mln back in November to take forward its Thali prospect, offshore Cameroon.
The company will need more money to drill a well, but the cash injection did allow Tower to reprocess old seismic data. That reprocessing is now complete and “the quality of the resulting data set is good”, said Tower.
An Environmental and Social Impact Assessment – needed to start drilling on the Thali licence – also began around the same time as the fundraise and work on that continues.
Also in November, Tower welcomed David Thomas, a petroleum geologist who has worked at Tenneco and Kuwait Petroleum, to its board of directors.
Plans for 2018
“Our company has made substantial progress since our last Annual Report in June 2017, and we are looking forward to finalising our Cameroon drilling program and making further progress towards near-term oil production,” said chairman and chief executive Jeremy Asher.
“Our objectives for the year ahead include getting our drilling program underway in Thali, planning further work in Cameroon including the pathway to production, agreeing plans to move forward in South Africa and Zambia, and potentially in Namibia, and generally continuing to strengthen our financial position.”
Tower ended the year with a cash balance of US$2.2mln (2016: US$0.79mln) and recorded a loss before tax of US$1.6mln (2016: US$23.3mln).
Tower shares were down 1.8% to 1.4p in early deals on Tuesday.