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Tower Resources discussing Namibia co-operation as Cameroon drilling nears

Snapshot

  • Partnership talks with an international oil major for Namibia assets
  • Targeting December spud at Njonji-3 well in Cameroon
  • Has licence next door to huge recent find offshore South Africa
oil rig

Quick facts: Tower Resources PLC

Price: 0.385 GBX

AIM:TRP
Market: AIM
Market Cap: £2.91 m
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How is it doing

Tower Resources PLC's (LON:TRP) Thali project has a mean figure of 111 MMbbls of oil identified across four prospects in the northern part of the Thali licence and  20 MMbbls of oil identified at the Njonji South and Njonji South-West fault blocks.

Using a 10% discount the value of the prospective resources is US$82mln.

Jeremy Asher, chairman and chief executive of Tower, said the group expected the Njonji-3 well to transform the 18mln barrels of Pmean contingent resources on the Njonji structure into reserves, which would be “transformative” for the project and Tower.

For the six months ended 30 June, the AIM-listed explorer reported a pre-tax loss of US$1.6mln, down from a US$3.3mln loss a year ago, while no revenues were made.

Njonji-3

The Njonji-3 well will be drilled to a total depth of 1,100 metres intersecting at least three reservoir zones already identified. 

In September, Tower said that due to preparation issues at the Njonji-3 well site caused by the previous license operator, Total, a realistic date for spudding the well would now be around December as it would need to conduct a site survey in either October or November.

At the start of November, Tower signed a contract for a site survey.

Survey ship MV Investigator will arrive in Cameroon between 15 November and 30 December, subject to permits and the requisite license extension being received from the Ministry of Mines prior to mobilisation

Algoa-Gamtoos

Elsewhere, Tower has a 50% stake in the Algoa-Gamtoos exploration area offshore South Africa that sits immediately adjacent to Total’s huge gas condensate discovery at Brulpadda.

Total encountered 57 metres of net pay in Lower Cretaceous reservoirs with an estimated one billion barrels at least of condensate.

Tower’s Algoa-Gamtoos contains an area of the same deepwater basin margin.

Namibia

The group also has an 80% interest in three exploration areas (blocks 1910A, 1911 and 1912B) that cover a total of 23,297 square kilometres in the Walvis Basin and Dolphin Graben offshore Namibia.

An initial four year exploration period requires a minimum spend of $5mln on work.

It will include the acquisition and reprocessing of existing 2D seismic data and new seismic.

In October, Tower said it had shared the information "to explore the potential to co-operate in respect of Tower's Namibian Blocks" with a major international oil company.

This follows preliminary talks between the parties during the summer.

What the boss says, chairman Jeremy Asher 

“We are in fact one of the first people to take exploration licences [in Namibia] back in 2006 and we had pretty much first choice of the blocks.”

“The exploration blocks that we have, both this one [in Namibia] and the block in South Africa, where we are next door to Total’s Brulpadda block, are very attractive exploration wells and either one of those can create a huge amount of value for the company.”

Latest video

Inflexion points

  • Finance and spudding of NJ0M3 well
  • Results from NJ0M3 well
  • Talks over Namibia acreage lead to deal

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Tower Resources CEO confident of success in Cameroon and Namibia

The chief executive of Tower Resources (LON:TRP), Graeme Thomson, talks through the company’s project plans in Cameroon and Namibia. On Wednesday Tower has raised £5.2mln in a share placing to fund its new project offshore Cameroon, in the Niger Delta. Thomson says this provides Tower...

on 07/16/2015

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