Tower Resources has signed farm-out agreements with Prime Global Energies for a 42.5% interest in the Thali license offshore Cameroon and 25% in PEL96 offshore Namibia. The deals involve $4.4 million in cash and are crucial for financing the NJOM-3 well, with completion anticipated by the first quarter of 2025, pending approvals.
Tower Resources, a U.K.-based oil and gas company, has finalized two significant farm-out agreements with Prime Global Energies for minority stakes in its Thali exploration license located offshore Cameroon and the PEL96 license offshore Namibia. Tower Resources will transfer a 42.5% non-operated interest in the Thali license, compensating Prime with $15 million towards the work program and the drilling of the NJOM-3 well scheduled for 2025. The drilling timeline is contingent upon obtaining approvals from the government concerning the farm-out deal and the extension of the First Exploration Period, which currently expires on February 4, 2025.
In addition, through its subsidiary Tower Resources (Namibia), the company has granted Prime a 25% non-operated interest in the PEL96 license for further participation. As part of this arrangement, Tower Resources will receive immediate cash payments totaling $4.4 million, which includes an upfront payment of $937,500 and an additional $3.4 million upon completion of the agreements. The completion process for both arrangements is expected to conclude by the end of the first quarter of 2025, dependent on necessary governmental and regulatory consents.
Chairman and CEO Jeremy Asher expressed confidence in the positive impact of the agreements on Tower Resources’ operations. He emphasized that the funding from the Thali farm-out should facilitate the drilling of the NJOM-3 well, marking a crucial accomplishment for the firm. Asher also acknowledged the significance of the PEL96 license and noted the importance of flexible negotiations that allowed modifications to the agreements, ensuring that Tower retains a larger interest in the licenses while generating vital cash flows to support ongoing projects.
Overall, these farm-out deals represent strategic leverage for Tower Resources, enhancing its liquidity while positioning the company to effectively explore and develop its assets in both Cameroon and Namibia.
The article discusses Tower Resources’ strategic partnership with Prime Global Energies through farm-out agreements that aim to enhance exploration opportunities in key offshore licenses in Cameroon and Namibia. Tower Resources is focused on increasing its exploration activities and drilling operations, with the NJOM-3 well in Cameroon being a significant milestone. The agreements not only provide immediate financial support but also reinforce the company’s asset portfolio, supporting continued growth in a highly competitive industry sector.
In summary, Tower Resources has successfully entered into farm-out agreements with Prime Global Energies that will enable the company to pursue drilling projects in Cameroon and Namibia. The $4.4 million cash injection and the retention of significant interests in its licenses equip Tower with the necessary resources and confidence to advance its exploration initiatives. With strategic negotiations yielding favorable terms, the company is well-positioned to enhance stakeholder value while progressing its operational goals.
Original Source: www.oedigital.com
