Repsol Exploration has assumed operatorship of Namibian Licence 0010 after it completed a farmout deal with Arcadia Expro Namibia and Tower Resources’ subsidiary Neptune Petroleum
Tower Resources announced that its subsidiary, Neptune Petroleum’s interest in Namibian Licence 0010 has doubled with the completion of the deal.
According to the terms of the farmout agreement, Neptune has released escrow funds of approximately US$5.3mn to reimburse Arcadia for 30 per cent of Arcadia’s past costs on the licence and it will assume 30 per cent of costs from 1 July 2012.
With the transactions now completed, Repsol has the maximum interest in the Licence 0010 with 44 per cent and the partners stand at Tower 30 per cent and Arcadia 26 per cent.
Tower CEO Graeme Thomson said, “We are pleased that the agreements have now been completed. We look forward to updating the market as preparations are made to drill the Welwitschia well on the multi-billion barrel prospect, formerly identified as the delta structure. Planning for the well is now able to accelerate.”
Tower chairman Jeremy Ashe noted, “The partners in Licence 0010 see many advantages in waiting until early 2014, and are certainly disinclined to hurry preparations for a complex and important well on such an attractive prospect.
“We have more than US$4mn of cash on hand and no immediate funding requirements. This also allows us to develop some other new business opportunities that we have in the pipeline.”
