Tower Resources has announced that Repsol SA has agreed to take a 44 per cent working interest in the Namibian offshore license 0010 and to become operator
Tower's subsidiary, Neptune Petroleum (
The farm-out deal will see Neptune reimburse Arcadia with 30 per cent of Arcadia's past costs on the license, amounting to approximately US$5.3mn, and will assume 30 per cent of future costs.
Provided that the transfers are completed, the ongoing interests in the license will be Repsol 44 per cent, Tower 30 per cent and
A number of prospects have been identified in the license, including five targets in the Delta structure which could contain approximately 9.3 billion barrels of recoverable oil and 14.5 tcf of gas.
Repsol is currently examining a variety of rig options and the busy exploration programme is likely to bring a number of rigs to the area
An announcement will be made when the partners have secured a rig to drill the first well on the license.
"We are also very pleased that we have increased our holding in the license to 30 per cent subject to the requisite government approvals,” said Tower chief executive officer Graeme Thomson.
“We will be in dialogue with Repsol regarding a rig and look forward to updating shareholders in due course.
“We are not willing to overpay for an early slot and are quite prepared to be patient if this achieves the best economics for us,” Thomson added.
