Tower Resources plc secures pivotal extension for Cameroon oil exploration

Tower Resources plc (AIM: TRP), a prominent AIM-listed oil and gas company with a focus on Africa, has recently announced a significant development in its exploration activities. The company has been formally notified by 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) until February 4, 2025. This extension, granted in alignment with the company’s PSC and the Cameroon Petroleum Code, received the approval of the President of the Republic of Cameroon, marking a pivotal moment for Tower Resources in its pursuit of sustainable and responsible oil and gas exploration in Africa.

At the heart of Tower Resources’ commitments during this extended exploration period is the drilling of the NJOM-3 well, a task the company is eager to fulfill. To this end, Tower Resources has been actively engaging with several parties to secure asset-level financing for the NJOM-3 well drilling operation. The company has contracted the Norve jack-up rig through Borr Drilling, with deployment to Cameroon anticipated between June and August 2024, contingent upon the rig’s prior commitments.

Further announcements regarding the financing of the well and the mobilisation of the rig are expected as firm agreements and notices are finalized and received. Tower Resources’ Chairman & CEO, Jeremy Asher, expressed enthusiasm about the extension, stating, “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.”

Asher’s comments highlight the significance of this extension as a crucial precondition for finalizing asset-level financing for the NJOM-3 well. The company remains optimistic about reaching firm agreements on commercial discussions, which are currently underway.

Beyond Cameroon, Tower Resources continues to assess and prioritize leads and prospects on its Namibian license, following recent basin modeling work. Discussions are also ongoing regarding the next steps on the South African Algoa-Gamtoos license with joint venture partner and operator, NewAge.

This extension underscores the collaborative efforts between Tower Resources plc and the Cameroonian government to foster sustainable oil and gas exploration in Africa. Tower Resources, with its strategic focus on stable jurisdictions and excellent fiscal terms, leverages its extensive expertise and strategic relationships to advance its operations in Cameroon, Namibia, and South Africa, aiming for short-cycle development, rapid production, and long-term upside in the region’s emerging oil and gas provinces.

The extension of the First Exploration Period for Tower Resources plc in Cameroon is a testament to the collaborative spirit between the energy sector and governmental bodies in Africa. It not only paves the way for Tower Resources to advance its exploration activities but also sets a positive precedent for sustainable and responsible resource development in the continent. This development is a key indicator of the potential for growth and prosperity in Africa’s oil and gas sector, reflecting a mutual commitment to leveraging natural resources for long-term economic and environmental benefits.