25th Sep 2013 11:36
LONDON (Alliance News) - Tower Resources PLC Wednesday said that Wilton Petroleum Limited and Ophir Energy PLC have signed a settlement agreement connected to Tower's acquisition of Wilton.
The AIM-listed oil and gas exploration company with operations in Africa said the settlement related to the acquisition of Wilton and its 20% owned Morovoay Block-2102, onshore Madagascar announced July 3.
The company said Ophir Madagascar, which owns the other 80% of the Morovoay block, decided to relinquish its commitments at the site on September 2 leaving Wilton to have to negotiate terms with the company and extending the Tower Resources acquisition schedule.
On Tuesday Ophir agreed to pay a settlement agreement of USD6 million in compensation to Wilton by no later than September 26.
Tower Resources said that it plans to proceed with the acquisition of Wilton following the payment.
It is paying USD1.75 million in cash, plus 120 million new Tower Resources shares.
"On completion of the Wilton acquisition, including payment of the cash consideration of USD1.75 million to the vendors, Tower's net cash balances will increase by USD4.25 million (before any taxes) to approximately USD18 million," Tower Resources Chief Executive Graeme Thomson said in a statement.
Tower Resources shares were flat midday Wednesday at 1.33 pence. Ophir Energy shares were quoted at 332.20p, down 5.30p.
By Tom McIvor; [email protected]; @TomMcIvor1
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