Tower Resources, the AIM-listed oil and gas company focused on Africa, has announced that its subsidiary, Tower Resources Cameroon SA ('TRCSA'), has issued a Letter of Award to Advanced Energy Systems S.A.E ('ADES'), an affiliate of ADES Holding, for the provision of a jack-up rig, proposed to be the Admarine 510, to drill the NJOM-3 well on Tower's Thali license in Cameroon in Q4 2025.
The Admarine 510, a GustoMSC CJ-46-X100-D triangular design three-legged jackup unit, built in 2019, and capable of operating in water depth up to 375 ft, is just completing its five-yearly recertification project in Bahrain. The rig has also recently been awarded a contract with Addax Petroleum for operations in Cameroon, to commence in late 2025, and it is intended that the rig will drill the NJOM-3 well for Tower before beginning operations with Addax Petroleum.
The commercial terms of the ADES proposal to TRCSA are confidential, but the fact that the Admarine 510 was already committed to move to Cameroon for other operators has facilitated the discussions with the rig owner and resulted in more favourable terms than the owner could have offered otherwise. The terms are well in line with the Company's previous projections and compare very favourably to offers received from other rig owners earlier this year and last year.
The Letter of Award is subject to contract and usual conditions precedent, including receipt of Government approvals in Cameroon and completion of TRCSA's farm-out to Prime Global Energies Limited as announced on 10 January 2025.
Tower Resources Chairman & CEO, Jeremy Asher, commented:
'We are delighted to make this award, and are looking forward to working with ADES on the NJOM-3 well this year. Our rig selection process has been made a little more complex by the opportunity to coordinate our timing with that of other nearby oil and gas companies, including Addax Petroleum in particular, however I believe it has resulted in a very good commercial outcome for all parties.'
Source: Tower Resources
