Tower Resources has entered into two farm-out agreements with Prime Global Energies for minority interests in the Thali license, Cameroon, and PEL96, Namibia. The agreements involve significant cash contributions and are expected to facilitate the drilling of the NJOM-3 well in 2025, pending government approvals.
Tower Resources, a U.K.-based oil and gas entity, has finalized two farm-out agreements with Prime Global Energies, securing minority, non-operated stakes in its offshore Cameroon Thali license and Namibia’s PEL96 license. Through its wholly-owned subsidiary, Tower Resources Cameroon, the firm will transfer a 42.5% non-operated interest in Thali to Prime in exchange for a $15 million cash injection to support the Thali work program and the drilling of the NJOM-3 well in 2025.
The drilling schedule for the NJOM-3 well hinges on timely government approvals of the farm-out transaction and an extension of the First Exploration Period, currently set to expire on February 4, 2025. Additionally, Prime has committed to a 25% non-operated interest in PEL96, alongside an immediate cash payment and further payments totaling $4.4 million to Tower upon the completion of the agreements. Both transactions are anticipated to conclude by the end of the first quarter of 2025, contingent upon requisite governmental, partner, and regulatory consents.
The agreements with Prime Global Energies are part of Tower Resources’ strategy to bolster its asset base and expedite key drilling programs. The Thali license in Cameroon is crucial for Tower’s operational plans, especially with the NJOM-3 well representing an important development milestone. The collaboration with Prime not only provides immediate funding but also enhances Tower’s ability to navigate the complexities of the oil and gas sector in both Cameroon and Namibia. Understanding the prospectivity of these licenses is critical for maximizing resource development and investor confidence.
In conclusion, Tower Resources’ farm-out agreements with Prime Global Energies signify a pivotal step in advancing its offshore projects. The financial backing and operational partnerships established through these accords are designed to enhance the company’s production capabilities and foster growth. With completion targeted by early 2025, Tower aims to leverage this support to fulfill its commitments and deliver value to stakeholders more efficiently.
Original Source: www.oedigital.com
