Tower Resources has entered two farm-out agreements with Prime Global Energies, granting non-operated interests in its Thali license in Cameroon and PEL96 in Namibia. These agreements provide Tower with critical funding, totaling $15 million for the Thali well and $4.4 million overall, to advance its drilling program while enhancing liquidity and operational capacity.
U.K.-based oil and gas enterprise, Tower Resources, has executed two significant farm-out agreements with Prime Global Energies for non-operated stakes in their Thali license offshore Cameroon and the PEL96 license offshore Namibia. As part of the arrangements, Tower will transfer a 42.5% non-operated interest in the Thali license to Prime in exchange for a $15 million financial contribution towards the work program and the drilling of the NJOM-3 well, scheduled for 2025.
The timing for drilling the NJOM-3 well is contingent on the government’s approval of the Thali farm-out and an extension to the First Exploration Period, currently set to conclude on February 4, 2025. The actual schedule will be influenced by available rig slots, factoring in standard lead times for mobilizing equipment and personnel required for the drilling operation.
Additionally, Tower Resources, through its subsidiary Tower Resources (Namibia), has arranged for Prime to acquire a 25% non-operated interest in the PEL96 license offshore Namibia. Upon conclusion of the agreements, Tower anticipates receiving approximately $4.4 million in cash, including $937,500 upfront and $3.4 million upon the agreements’ completion by the end of the first quarter of 2025, subject to requisite government and regulatory approvals.
Jeremy Asher, the Chairman and CEO of Tower Resources, stated that the funding allocated for the Thali license should facilitate drilling the NJOM-3 commitment well, marking a pivotal milestone for the company. Notably, he emphasized the importance of recognizing the potential of the PEL96 license as well, which has led to this cooperative arrangement with Prime. Asher remarked, “Our goal remains to achieve progress across the company’s entire asset base and deliver value for all stakeholders, and the additional liquidity these transactions will generate, upon completion, should allow us to proceed with all our work programs with greater confidence.”
Tower Resources, a company headquartered in the United Kingdom, is involved in the exploration and production of oil and gas. The company holds licenses in various locations, notably offshore Cameroon and Namibia, where it seeks to expand its operational footprint and deliver shareholder value. The agreements with Prime Global Energies represent a strategic move to leverage external partnerships for operational funding and expertise, particularly as Tower prepares to engage in drilling activities in the coming years.
In summary, Tower Resources has successfully secured farm-out agreements with Prime Global Energies for its licenses in Cameroon and Namibia, which will provide essential funding and shared expertise to facilitate upcoming drilling operations. The company anticipates substantial cash inflows and the opportunity to enhance its operational capabilities, ultimately aiming for progress across its asset portfolio. These agreements are expected to significantly bolster Tower’s liquidity and further its strategic objectives.
Original Source: www.oedigital.com
