Algoa-Gamtoos Block (50% Operated)
Operator: New Age Energy Algoa (Pty) Ltd,
New African Global Energy SA (Pty) Ltd
Licence Size: 11,809km²
1st Renewal Period (2 Years)
Through its wholly-owned subsidiary, Rift Petroleum Limited, Tower Resources holds a 50% interest in the Algoa-Gamtoos licence, offshore South Africa. Tower acquired its non-operated interest in the Algoa-Gamtoos licence through the all share acquisition of privately-owned Rift Petroleum Limited in April 2014.
Offshore South Africa has recently come to the interest of oil majors, such as Exxon, Total, Anadarko and Shell who have recently acquired acreage in the region, paying farm-in premiums totaling hundreds of millions of dollars.
The Algoa-Gamtoos licence covers 11,809km² and is operated by New Age Energy Algoa (Pty) Ltd (50%). It is located between two licence areas that have recently been farmed into by Exxon and Total. The Algoa-Gamtoos licence consists of three prospective basins, Algoa to the east, Gamtoos to the west and the Outeniqua deep-water basin. Total’s very large Brulpadda prospect, that was to be drilled in 2014 in the block adjacent to Algoa-Gamtoos, could materially de-risk the deep water portion of the area.
In September 2015, approval was received to enter into the two-year First Renewal Period on the offshore Algoa-Gamtoos licence. Evaluation continues by the Operator, New Age, of the previously acquired 3D and 2D seismic.