Initial Exploration Period (3 years)
Initial Exploration Period Extension (1 year)
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, and has been granted an extension to the Initial Exploration Period to 15 September 2019.
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 boe, primarily within 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 have been discovered, with 2.5 billion boe attributed to the Cameroonian section. The Thali Block has the potential to hold at least four distinct play systems, including two established plays in which three discovery wells (Rumpi-1, Njonji-1 and Njonji-2) have already been drilled on the Block.
Following a comprehensive review of the subsurface dataset, including reprocessing of 3D seismic data by DMT Petrologic GmbH & Co KG, and detailed petrophysical analysis of wells in and around the block, Oilfield International Limited (OIL) were retained to conduct an assessment of the Thali licence prospectivity and produce a Reserve Report. In November 2019 the results of the independent Reserve Report conducted by Oilfield International Limited (OIL) were published, highlighting the actual and potential resources on the Thali licence and the associated Expected Monetary Value (EMV) of each of the identified prospects, as follows:
Gross mean contingent resources of 18 MMbbls of oil across the proven Njonji-1 and Njonji-2 fault blocks and with a development contingency probability of 80% on first phase and 70% on second phase;
Gross mean prospective resources of 20 MMbbls of oil across the Njonji South and Njonji South-West fault blocks;
Gross mean prospective resources of 111 MMbbls of oil across four identified prospects located in the Dissoni South and Idenao areas in the northern part of the Thali licence;
Calculated EMV10s of US$118 million for the contingent resources, and US$82 million for the prospective resources, respectively.
Reprocessing of the existing 3D seismic dataset completed in 2018 also highlighted the deeper prospectivity that exists on the Thali block. These turbidite and sandstone exploration plays are analogous to giant fields such as Alba and Zafiro which are on trend within the same basin. However, this prospectivity has not formed part of the OIL reserves report.
Drilling of the NJOM-3 well is expected to occur between April and June 2019 targeting the contingent resources of Njonji-1 and Njonji-2, with the aim of converting these resources into 2P reserves in the event of drilling success via a drill stem test (DST). The objective then would be to deliver first oil from the Thali licence as soon as possible via an extended well test (EWT) using a Mobile Offshore Production Unit (MOPU), which could also be used for production from additional drilling of the other identified prospects on the Thali licence.
A suitable jack-up rig has been identified for the drilling of the NJOM-3 well and a Letter of Commitment (LoC) executed with the final terms being subject to contract. Financing of the NJOM-3 well via an industry partner remains an option and the financing of a field development using reserve-based lending is also under consideration in the event of a successful EWT.