The loan facility, originally envisaged as a bridging facility in April 2019, has now been extended through to the end of November 2021.
In a statement, the company noted that the company’s independent directors believe it is in the company’s best interest not to repay nor to convert the facility now given the potential additional dilution it may create.
Tower said it aims to repay the facility by mid-July.
Jeremy Asher, meanwhile, said: “The independent directors and I are all committed to getting the NJOM-3 well in Cameroon drilled as soon as circumstances permit.
“The possible easing of pandemic restrictions globally both provides a more favourable market environment, and also means that it is now important we complete current financing discussions for the well.
“We are therefore optimistic that we can get this financing in place by the summer, which would reduce the time required for the extension of the facility, and this is why the independent directors have adopted this extension structure.”
He added: “If the NJOM-3 well succeeds as we hope, then we believe that the royalty share agreed provides an appropriate reward to both shareholders and Pegasus.
“We also hope that shareholders will see clearly, in the terms of this extension, the confidence that I have in our ability to deliver the NJOM-3 well and production from Thali in due course.”