Cameroon update

RNS Number : 0569Z

Tower Resources PLC

19 May 2021

 

19 May 2021

Tower Resources plc

("Tower" or the "Company")

Cameroon update

Tower Resources plc (TRP.L, TRP LN), the AIM listed oil and gas company with its focus on Africa , is pleased to announce an update regarding planned operations on the Thali license (the "PSC") in Cameroon held by its subsidiary Tower Resources Cameroon SA ("TRCSA"), and the NJOM-3 well.

The Company has now received formal confirmation from the Minister of Mines, Industry and Technological Development ("MINMIDT") of the details of the formal extension of the First Exploration Period of the PSC. As previously announced the Company declared Force Majeure in March 2020 in respect of the First Exploration Period of the PSC, in light of the restrictions required to combat the Covid-19 pandemic, and on 31 March 2021 the Company announced that the President of the Republic had also approved a formal extension of the First Exploration Period.

The formal "arrête" from MINMIDT extends the First Exploration Period to 11 May 2022.

This formal extension allows the Company to proceed with finalising a schedule for drilling and testing the NJOM-3 well.

Jeremy Asher, Chairman and Chief Executive Officer, commented:

"We are once again grateful to the Republic of Cameroon and to the Minister of Mines, Industry and Technological Development and his staff for their continued support of the Thali project, and also to the President of the Republic, the Secretary General of the Office of the Presidency, and the Prime Minister for taking a direct interest in our activity, as well as all the staff at the Societé Nationale de Hydrocarbures who have supported us during this First Exploration Period. We are looking forward to seeing the NJOM-3 well drilled as soon as possible, and we will have more news for investors about the schedule in due course."

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

Contacts

Tower Resources plc	[phone]
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]
ETX Capital Joint Broker Elliot Hance	[phone]
Turner Pope Investments (TPI) Limited Joint Broker Andy Thacker	[phone]
Panmure Gordon (UK) Limited Joint Broker Nick Lovering Hugh Rich	[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.

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) and published in March 2020 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 17.9 MMbbls of oil and liquids across the proven Njonji-1 and Njonji-2 fault blocks;

§ Gross mean prospective resources of 19.8 MMbbls of oil and liquids across the Njonji South and Njonji South-West fault blocks;

§ Gross mean prospective resources of 111.3 MMbbls of oil and liquids across four identified prospects located in the Dissoni South and Idenao areas in the northern part of the Thali licence;

§ Calculated Best Estimate NPV10 of US$119 million and EMV10 US$91 million for the contingent resources, based on March 2020 Brent price for 2021 of approximately $44/barrel.

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

 

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