Tower Resources, the AIM-listed oil and gas company focused on Africa, has received formal notification from the Minister of Mines, Industry and Technological Development in Cameroon (MINMIDT) of the extension of the First Exploration Period of the Thali production-sharing contract (PSC) to 4 February 2025, in accordance with the Companys PSC and the Cameroon Petroleum Code, and with the approval of the President of the Republic of Cameroon
The Company's principal obligation during the First Exploration Period is the drilling of a single well which the Company intends to fulfil through the drilling of the NJOM-3 well.
The Company is continuing discussions with several parties regarding asset-level financing for the NJOM-3 well, for which it has contracted the Norve jack-up rig with Borr Drilling. Borr Drilling's latest advice is that the Norve rig is expected to be able to mobilise to Cameroon between June and August 2024, subject to its existing contractual commitments.
The Company will make further announcements about the financing of the well and the mobilisation of the rig as firm agreements and notices are finalised and received.
Tower Resources chairman and CEO, Jeremy Asher, commented, "We are delighted to share this news, and grateful to the MINMIDT, the Societe Nationale de Hydrocarbures, and the Prime Minister and President of the Republic of Cameroon, for their continuing support.
"We remain confident in finalising asset-level financing for the well, for which this extension was a critical condition precedent. However, we cannot comment further on the commercial discussions in progress until firm agreements are reached.
"In the meantime, we are also continuing our work on the evaluation and prioritisation of leads and prospects on our Namibian licence in light of the basin modelling work we recently completed, and we have been discussing the next steps on our South African Algoa-Gamtoos license with our joint venture partner and operator, NewAge. We hope that this will be the first of many positive announcements in 2024."