First Exploration Period (3 years extended to 11 May 2023, one further year extension beyond 11 May 2023 pending approval)
Two further Exploration Periods available
Tower Resources Cameroon S.A, a wholly-owned subsidiary of Tower Resources plc, holds a 100% interest in the shallow-water Thali Production Sharing Contract (PSC) in the Rio del Rey basin, offshore Cameroon.
Tower was awarded the PSC on 15 September 2015, and has applied to the Minister of Mines, Industry and Technological Development (“MINMIDT”) for a further one year extension to the First Exploration Period beyond 11 May 2023. The extension enables the Company to finalise the schedule for the drilling and testing of the NJOM-3 well which is expected to occur in the second half of 2023.
The Thali PSC covers an area of 119.2 km², with water depths ranging from eight 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 barrel of oil equivalent (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.
Tower’s most recent review of the Thali block prospectivity (announced on 27 April 2023) has applied an upgraded attribute analysis of the reprocessed 3D seismic data which Tower obtained in 2018, using the AI-driven Paradise® workbench software from Geophysical Insights (www.geoinsights.com) to identify the following aspects:
Oil pay sweet spots in the reservoirs;
Areas of potential increased gas risk or presence of gas caps more clearly
This study was completed with a particular focus on the location of the oil and gas elements of the reservoirs in the Njonji-1 and Njonji-2 fault blocks which were connected to the original NJOM-1 and NJOM-2 wells drilled by Total.
The Paradise AI workbench analysis yielded higher resolution of the PS9 (Sup) and PS3 pay zones in the Njonji-1 fault block which has both confirmed the additional volumes identified in Tower’s previous estimates and also substantially de-risked them. The analysis also provides better resolution of the PS9-R1 reservoir in the Njonji-2 fault block, including identifying an additional potential oil leg below the gas encountered in the NJOM-2 well.
The analysis has also de-risked the prospective resources associated with the proposed NJOM-3 well allowing for the optimisation of its drilling location.
Based on the results of the Paradise attribute analysis the following update of Tower’s internal resource and risk estimates for the reservoirs connected to the NJOM-1 and the NJOM-2 discovery wells has been generated. The latest company estimate of risked PMean recoverable resources is now 35.4 million barrels. The changes from previous internal company estimates can be summarised as follows:
Risked PMean recoverable resources in Fault Block 1 increased from 10.5 to 12.9 million bbls;
Risked PMean recoverable resources in Fault Block 2 increased from 4.1 to 4.9 million bbls;
Risked PMean recoverable resources in South Fault Block unchanged at 17.6 million bbls.
This new information will form the basis of an updated CPR to SPE/PSMR standards in due course.
Drilling Programme and Facilities Installation
Preparations are under way for the drilling of the NJOM-3 well and discussions continue with rig owners and operators with the aim to secure rig availability for a drilling date in the second half of 2023. The NJOM-3 well will target the contingent resources of the Njonji 1 fault block (and the PS9 reservoir in the Southern Njonji fault block) with the aim of converting some or all of these resources into 2P reserves in the event of a successful drill stem test (DST) establishing flow rates from the reservoirs.
Once drilled the NJOM-3 well will be logged and a Modular Formation Dynamics Test (MDT) run followed by a DST to ascertain a test flow rate, recoverable volumes and other reservoir characteristics. Assuming that these steps are successful, then the NJOM-3 well will be suspended as a future production well, and facilities will be installed under a Provisional Exploitation Authorisation (PEA) to commence production. A multi-well drilling programme will be undertaken with the drilling of an addition three further production wells with the objective to deliver first oil from the Thali licence in late 2024 if possible, while continuing reservoir testing via a platform and Mobile Offshore Production Unit (MOPU). The design concept for the platform and MOPU is intended to allow the drilling of additional identified prospects on the Thali licence including at Njonji while production is underway from the Njonji-1 and Njonji-2 reservoirs.