Tower Resources, the AIM-listed oil and gas company focused on Africa, has announced that its wholly owned subsidiary, Tower Resources Cameroon SA ('TRCSA'), has received formal documentation from the Ministry of Mines, Industry and Technological Development ('MINMIDT') of the extension to the initial exploration period for its Thali license in Cameroon.
The initial exploration period of the Thali license has now been extended by a further year to 2 October 2027.
The next steps are intended to be the formal approval by MINMIDT and subsequent completion of the previously announced farm-out of a 42.5% interest in the Thali license to Prime Global Energies ('Prime'). As previously disclosed, this farm-out has already received the approval of the President of the Republic of Cameroon, which has been conveyed through the Prime Minister’s office to the Société Nationale des Hydrocarbures and MINMIDT. Whilst the Company cannot be specific about timing, it hopes that these steps will be completed shortly.
TRCSA will now move forward towards conclusion of a rig contract to drill the NJOM-3 well on the Njonji structure within the Thali block, with a target spud date in the second quarter of 2027, in parallel with the completion of the farm-out. This well aims to test both the existing reservoirs encountered by the previous discovery wells drilled on the structure, and also additional reservoirs, the presence of which is indicated on the 3D seismic data but not yet confirmed by drilling.
If the NJOM-3 well confirms current expectations, then TRCSA plans to suspend the well and to return in 2028 to drill further production wells, in order to commence production with multiple wells simultaneously through a mobile oil production unit ('MOPU').
Tower Resources Chairman & CEO, Jeremy Asher, commented:
'We are very happy to share this long-awaited news with shareholders. In addition to recognising the effort of TRCSA’s Managing Director, M Dairou, in steering our file through the various stages of approval, I wish to offer my personal thanks, as well as the Company’s thanks, to the President and Prime Minister of the Republic of Cameroon and their staff, including, in particular, the President’s Director of Civil Cabinet, and also the Minister of Mines, Industry and Technological Development, and our friends at the Societé Nationale des Hydrocarbures and the British High Commissioner in Cameroon, for their support through this process.
'We are looking forward to completing the final stage of the initial exploration period work programme, together with our partner Prime once the farm-out is completed, and my colleagues and I are very grateful both to Prime and to our shareholders for their patience and support up to this point.'
Source: Tower Resources
