7 August 2012
Watson, Farley & Williams (“WFW”), a leading international law firm, is pleased to announce that it has advised Tower Resources plc (“Tower”) on the acquisition of an additional 15% interest in Namibian oil and gas licence 0010 and the related petroleum agreement (the “Licence”) from Arcadia Expro Namibia (Proprietary) Ltd (“Arcadia”) and a placing to institutional and other investors to raise £5.9 million.
Under the terms of a farm-out agreement entered into between a wholly owned subsidiary of Tower and Arcadia, Tower has agreed to convert its existing 15% carried interest in the Licence into a 30% working interest. The transaction also saw Spanish major Repsol S.A. agree to acquire a 44% working interest in the Licence and become operator. Both acquisitions are subject to regulatory approvals.
In addition to its interest in the Licence, Tower holds a 50% interest in three exploration licences in the Saharawi Arab Democratic Republic.
Jan Mellmann, partner and head of the WFW Natural Resources Group, led the team with assistance from solicitors Heike Trischmann (oil and gas) on the farm-out and joint operating agreements and Gareth Burge (corporate finance) on the placing arrangements.
Speaking for Tower, Graeme Thomson (Chief Executive Officer) said: “This was my first transaction with WFW, having recently joined Tower as CEO. It will not be the last. The WFW team were hi-tempo, extremely diligent, tenacious, focused and pro-active. Their advice was commercial and to-the-point. This enabled a complex deal and placing to be achieved fast”.
Jan Mellmann, partner and head of Natural Resources at WFW commented: “We have advised Tower for a number of years and are delighted to have been involved in this latest transaction which represents a significant step for the company. Offshore Namibia is considered by some to be one the few under-explored regions worldwide with large resource potential. Over the past year or so, the region has seen a flurry of M&A and investment activity, including transactions on which our Natural Resources team has advised.”