Cameroon Operational Update

RNS Number : 8040Z

Tower Resources PLC

15 January 2020

 

15 January 2020

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 its focus on Africa, is pleased to provide the following operational update on its work on the Thali licence in Cameroon, conducted through its wholly-owned subsidiary Tower Resources Cameroon SA.

As noted in previous updates, the Company has applied to the Ministry of Mines, Industry and Technological Development ("MINMIDT") for an extension of the initial period of the Exploration Phase of the Thali production-sharing contract ("PSC")  of up to one year from its current expiration date (of 15 September 2019), in accordance with the Company's PSC and the Cameroon Petroleum Code, for the purpose of completing the NJOM-3 well currently in process on the Njonji structure.

His Excellency the Minister has now formally notified the Company that the Government of Cameroon has decided to grant a further exceptional one-year extension to the initial period of the Exploration Phase of the Thali PSC as requested by the Company.

The Company and Geoquip Marine AG have spent the last few weeks finalising preparations for the MV Investigator to conduct the site survey on the NJOM-3 drilling area prior to commencement of drilling operations, in accordance with the contract announced on 1 November 2019. The MV Investigator is already in Cameroon, where it has been performing some routine maintenance, and the vessel is expected to commence work on the survey shortly. When the survey report is complete the Company will discuss the survey results with the drilling company COSL, with whom it executed an LOI announced on 28 August 2019, before finalising arrangements for the well itself.

Jeremy Asher, Chairman & CEO, added:

"We would like to thank His Excellency the President of the Republic, His Excellency Prime Minister Dr. Joseph Dion Ngute, His Excellency the Minister Gabriel Dodo Ndoke, together with their respective staffs, and of course the Société Nationale des Hydrocarbures, for their continued commitment to us and to the Thali project." 

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]

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.

 

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