Cameroon Operational Update

RNS Number : 8857R

Tower Resources PLC

01 November 2019

 

1 November 2019

Tower Resources plc

Cameroon Operational Update

Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)), the AIM-listed oil and gas company with a focus on Africa, is pleased to provide an update on operations on the Thali block in Cameroon.

The Company and its subsidiary, Tower Resources Cameroon SA, have signed a contract with Geoquip Marine Operations AG ("Geoquip") to conduct the site survey at the intended NJOM-3 well location on the Company's Thali license in Cameroon.  The contract provides for the MV Investigator to arrive in Cameroon between 15 November and 30 December 2019, subject to all relevant permits and the requisite license extension being received from the Ministry of Mines, Industry and Technological Development (the "Ministry") prior to mobilisation.  The work will comprise three boreholes, each with cone penetration testing (continuous PCPT), and is a necessary prerequisite to COSL drilling the NJOM-3 well in line with the LOI which has already been signed with COSL as disclosed in August 2019.  The cost of the survey is in line with the budget previously anticipated, and the time required for the work is approximately 7-10 days on site, plus any off-site testing and report preparation.

Jeremy Asher, Chairman and CEO, commented: "We are looking forward to getting the site survey underway, which should be the final operational step before commencing drilling operations at Njonji.  We are still awaiting the formal extension from the Ministry, but we are confident that this will be in place in good time for the survey. "     

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		[e-mail]
Jeremy Asher Chairman and CEO
Andrew Matharu VP - Corporate Affairs
SP Angel Corporate Finance LLP Nominated Adviser and Joint Broker Stuart Gledhill Caroline Rowe		[phone]
Turner Pope Investments (TPI) Limited Joint Broker Andy Thacker Zoe Alexander		[phone]
Whitman Howard Limited Joint Broker Nick Lovering		[phone]
Yellow Jersey PR Limited		[phone]
Sarah Hollins Henry Wilkinson

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 within 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.

An independent Reserve Report conducted by Oilfield International Limited (OIL) has highlighted the contingent and potential resources on the Thali licence and the associated Expected Monetary Value (EMV) as follows:

§ Gross mean contingent resources of 18 MMbbls of oil across the proven Njonji-1 and Njonji-2 fault blocks;

§ Gross mean prospective resources of 20 MMbbls of oil across the Njonji South and Njonji South-West fault blocks;

§ Gross mean prospective resources of 111 MMbbls of oil across four identified prospects located in the Dissoni South and Idenao areas in the northern part of the Thali licence;

§ Calculated EMV10s of US$118 million for the contingent resources, and US$82 million for the prospective resources, respectively.

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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