Award of 3D Seismic Reprocessing Contract

RNS Number : 8944X

Tower Resources PLC

30 November 2017

 

30 November 2017

Tower Resources plc

Award of 3D Seismic Reprocessing Contract

Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)), the AIM listed oil and gas company with its focus on Africa, is pleased to announce the award to DMT Petrologic GmbH & Co. KG ("DMT Petrologic") of a contract to reprocess the 3D seismic data over and around Tower's Thali license in Cameroon.

The contract, awarded following a competitive tender among six companies, covers merging and reprocessing data from five existing surveys, to cover an area of approximately 500 km² including the entirety of the Thali block and also the surrounding area, encompassing both the three discovery wells on the Thali block itself, and additional key wells which will provide further data control.

The reprocessing work will achieve higher resolution imaging and obtain additional information to upgrade the existing prospect inventory on the Thali block.

DMT Petrologic has extensive experience in the reprocessing of legacy 3D seismic data in West Africa and elsewhere, including in Cameroon, and expects this work to be completed in the first quarter of 2018 at a cost in line with the Company's original expectations.

Jeremy Asher, Chairman & CEO, commented:

"This work will allow us to make a more detailed evaluation of the many prospects on the Thali block, including the existing discoveries at Njonji and Rumpi. We expect to crystallise greater confidence in the volumetric estimates of existing leads and prospects as well as identifying new ones. This will form the basis for our drilling plans, to be confirmed via a Competent Person's Report (CPR) next year. We look forward to working with DMT Petrologic and will update shareholders as the work proceeds.  We are also finalising our plans for an environmental survey in advance of drilling on the Thali block, and will advise further when those arrangements are complete. We are fully committed to our goal of reaching production at Thali as soon as possible."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Contacts

Tower Resources plc	[phone] [e-mail]
Jeremy Asher, Chairman and CEO
Andrew Matharu, VP Corporate Affairs
SP Angel Corporate Finance LLP Nominated Adviser and Broker	[phone]
Stuart Gledhill
Caroline Rowe

Notes:

Tower Resources Cameroon S.A, a wholly-owned subsidiary of Tower Resources plc, holds a 100% interest in the shallow water Thali (formerly known as "Dissoni") Production Sharing Contract (PSC), in the Rio del Rey basin, offshore Cameroon. Tower was awarded the PSC on 15 September 2015 for an Initial Exploration Period of 3 years.

The Thali PSC covers an area of 119.2 km², with water depths ranging from 8 to 48 metres, and lies in the prolific Rio del Rey basin, in the eastern part of the Niger Delta. The Rio del Rey basin has, to date, produced over one billion barrels of oil and has estimated remaining reserves of 1.2 billion barrels of oil equivalent ("boe"), primarily at depths of less than 2,000 metres. The Rio del Rey is a sub-basin of the Niger Delta, an area in which over 34.5 billion barrels of oil has been discovered, with 2.5 billion boe attributed to the Cameroonian section. The Thali Block has the potential to hold up to four distinct oil play systems, including the established play in which three discovery wells, one gas (Rumpi-1), one oil and gas (Njonji-2) and one oil (Njonji-1), have already been drilled. The current contingent Oil-In-Place estimate for the Njonji discovery is 39 million barrels (Pmean, gross) with an estimated 7 to 15 million barrels of recoverable oil. These have historically been viewed as sub-commercial discoveries, but once the re-interpretation of seismic imaging has been achieved Tower sees potential to add incremental oil reserves to achieve commerciality. There is also significant potential to develop prospects at deeper levels, in both structural and stratigraphic traps, once better imaging has been achieved. 

In accordance with the guidelines for the AIM market of the London Stock Exchange, Dr Mark Enfield, BSc, PhD, FGS, Advisor to the Board of Tower Resources plc, who has over 30 years' experience in the oil & gas industry, is the qualified person that has reviewed and approved the technical content of this announcement.

 

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