Tower Resources (AIM:TRP) has been tipped as a Speculative Buy as stockbroker SP Angel marks time, and takes inventory of the small-cap firm's potential, as investors await action in Cameroon and Namibia.
SP Angel, meanwhile, raised its 12-month target price to 0.11p, from 0.10p per share (current price: 0.02p).
Analyst David Mirzai the highlighted in a note that the London-listed oil and gas explorer is maintaining operational readiness to drill the NJOM-3 appraisal well in Cameroon in 4Q26 while progressing the PEL96 work programme in Namibia.
The note flags that Prime Global Energies has cleared due diligence in Namibia and been recommended for approval, that Prime will pay $2.5m on completion and carry $15m gross capex on Thali.
The SP Angel analyst says it assumes Prime’s carry will allow Tower to contract a rig and services to spud NJOM-3 once ministerial approvals are received, with the well expected to confirm Njonji’s commerciality and de‑risk a fast‑track development.
Mirzai, meanwhile, increased its long-term Brent assumption to $80/bbl (from $70/bbl) to revalue Tower’s Core NAV plus a risked contribution from PEL96.
Earlier this week, Tower reported an $18.5m FY25 loss which included $4m spent to maintain drill readiness and a $14m non‑cash impairment on Algoa Gamtoos amid delays to farm‑out approvals following 2025 Presidential elections.
