Tower Resources, the AIM-listed oil and gas company focused on Africa, has received a formal letter of approval from the Namibian Ministry of Industries, Mines and Energy ('MIME') for the farm-out of the PEL96 license, offshore Namibia, to Prime Global Energies.
This represents the finalisation of the only outstanding condition precedent under the PEL96 farm-out contract, announced on 10 January 2025. The Company will now send out a notice of completion to Prime, and a draft deed of assignment, novation and amendment to MIME and Tower's partners, with completion expected to follow shortly.
The Company is still awaiting approval for the proposed purchase by its wholly owned subsidiary Tower Resources (Namibia) Limited ("TRNL") of an additional 5% interest in the PEL96 license from its local partner, ZM Fourteen Investment (Pty) Ltd ("ZM") (together, the "Parties"), announced on 7 March 2025. As a result of the delay, the Parties are no longer bound to complete the acquisition of this interest, but are continuing to discuss its execution.
Tower Resources Chairman & CEO, Jeremy Asher, commented:
'We are very pleased to have received this letter of approval, and would like to thank the relevant personnel at MIME, the Upstream Petroleum Unit and NAMCOR for their diligent review and continued engagement throughout this process. We would also like to welcome Prime, who we view as a highly favourable partner for PEL96, with substantial technical and financial resources and a track record of operational success. We look forward to working alongside them and our other stakeholders to progress with the work programme offshore Namibia.'
Source: Tower Resources
