Tower Resources plc (the “Company” or “Tower” (TRP.L, TRP LN)), the AIM-listed oil and gas company with its focus on Africa, is pleased to provide the following operational update on its work on the Thali licence in Cameroon, conducted through its wholly owned subsidiary Tower Resources Cameroon SA.
As noted in its operational update published on 20 August 2018, the Company filed its application with the Ministry of Mines, Industry and Technological Development (“MINMIDT”) for an extension of the Initial Exploration Period of the Thali licence of up to one year from its current expiration date (of 14 September 2018), as permitted under the Company’s production-sharing contract (“PSC”), for the purpose of completing the well currently in process on the Njonji structure.
The Company was informed on Friday 14 September by His Excellency the Minister that he has agreed to grant a one-year extension to the Thali license, in accordance with the PSC, and subject to the condition that the Company’s rig contract for the upcoming well is finalised and executed within three months. The Company has not yet received formal notification by letter from MINMIDT but has been told to expect such a letter this week. There is also some further documentation to be completed and the Company will make a further announcement when this is done.
In the meantime, work on the Reserve Report and selection of rig and service contractors for the upcoming well is continuing. The Company’s internal G&G work is now substantially complete and is being reviewed by Oilfield International (“OIL”), the independent consultants preparing the Reserve Report. The Company has retained Bedrock Drilling Limited to provide well management and supervision services for the Njonji well, and is presently negotiating terms for both rig and services.
Jeremy Asher, Chairman & CEO, added:
“We would like to thank His Excellency Minister Ernest Gbwaboubou, and M Adolphe Moudiki, the Excecutive General Manager of our partner the Société Nationale des Hydrocarbures, together with their respective staffs, for their commitment to us and to the Njonji project at Thali.”
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Tower Resources plc
+44 20 7157 9625
Jeremy Asher, Chairman and CEO
Andrew Matharu, VP – Corporate Affairs
SP Angel Corporate Finance LLP
Nominated Adviser and Broker
+44 20 3470 0470
Tower Resources Cameroon S.A, a wholly-owned subsidiary of Tower Resources plc, holds a 100% interest in the shallow water Thali (formerly known as “Dissoni”) Production Sharing Contract (PSC), in the Rio del Rey basin, offshore Cameroon. Tower was awarded the PSC on 15 September 2015 for an Initial Exploration Period of 3 years.
The Thali PSC covers an area of 119.2 km², with water depths ranging from 8 to 48 metres, and lies in the prolific Rio del Rey basin, in the eastern part of the Niger Delta. The Rio del Rey basin has, to date, produced over one billion barrels of oil and has estimated remaining reserves of 1.2 billion barrels of oil equivalent (“boe”), primarily at depths of less than 2,000 metres. The Rio del Rey is a sub-basin of the Niger Delta, an area in which over 34.5 billion barrels of oil has been discovered, with 2.5 billion boe attributed to the Cameroonian section.
The Thali Block has the potential to hold up to four distinct oil play systems, including the established play in which three discovery wells, one gas (Rumpi-1), one oil and gas (Njonji-2) and one oil (Njonji-1), have already been drilled. Prior to the interpretation of the recently reprocessed 3D seismic data covering the block, the most recent contingent Oil-In-Place estimate for the Njonji discovery was 39 million barrels (Pmean, gross) with an estimated 7 to 15 million barrels of recoverable oil.