News listings

energy-pedia general news

Namibia flagNamibia

Middle East / Africa >>> Namibia

Namibia: Tower Resources resolves Namibia cost dispute


19 Dec 2014

Photo - see caption

AIM-listed Tower Resources has reached agreement with the Operator, Repsol Exploration (Namibia), relating to the disputed costs associated with the drilling of the Welwitschia prospect, offshore Namibia.

As announced on 3rd September 2014, the Operator's estimate of well and other related costs for the drilling of the Welwitschia prospect, which had been completed on 15th June 2014, had increased to US$33.0 million net to Tower.  At that date, Tower's subsidiary, Neptune Petroleum (Namibia), had settled US$25.3 million of these costs.

Following amicable discussions with the Operator, agreement has been reached settling Neptune's share of costs at US$28.3 million. Consequently, a final cash payment of US$3.0 million is being made by Neptune in full and final settlement of all costs associated with the well and the Licence exploration period which ended on 22nd August 2014. This represents a net reduction of US$4.7 million against the previous estimate.  

A firm budget has been agreed for the next exploration period which extends to 22nd August 2015. This work programme is designed to obtain a fuller understanding of the results of the well and of its implications for the remaining prospectivity of the Licence, especially the large untested deeper targets, including the Albian carbonates, now there is a well-tie to the existing 3D seismic.

Following the final US$3.0 million payment, Tower's cash position will be approx. US$7.5 million. The Company is adequately funded for its remaining commitments with respect to the drilling of the Badada-1 well, onshore Block-2B, Kenya, which is expected to spud by early January 2015 and for which further cash costs of US$1.9 million are budgeted.

Graeme Thomson, CEO, commented: 'We are pleased to have resolved these matters and now to be working to improve our understanding of the untested prospectivity in our Namibia Licence. We can now focus on our exciting and potentially play-opening well onshore Kenya and continue developing our African portfolio.'

Original article link

Source: Tower Resources





Bookmark and Share


A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.


Subscriber Only Deals

Current deals: 1689
Completed deals: 5209

Company Profiles

Current Company Profiles: 2643

Corporate Activity

Current Corporate Activity articles: 3281

Companies Looking

Current number of articles: 427

Company Sales

Current Company Sales articles:1358

Geostudies

Current Geostudies articles: 640

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...


energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...



energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...

Subscribe

Subscribe to the FREE
energy-pedia Daily Newsletter
Subscribe

Union Jack Oil 149
Bayphase
KL Publishing
Government of South Australia
energy365
SLR Consulting logo
Geoespace
count geophysics
RSK Logo 149
OPC
Rose & Assocs 149
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans
UNITED KINGDOM

Tel: +44(0)1727 822675

Email: info@energy-pedia.com