Tower Resources shares rose on Monday after it said it had received a one-year extension to the exploration period of its Thali licence in Cameroon, taking it to October 2027.
The Africa-focused explorer said the extension gave it room to complete a previously announced farm-out, under which it will pass a 42.5% interest in the licence to Prime Global Energies. Cameroon’s president has already approved the deal, and it is awaiting formal ministerial sign-off.
Tower said it would now move towards agreeing a rig contract to drill the NJOM-3 well on the Njonji structure, targeting a spud date in the second quarter of 2027. The well will test reservoirs found by earlier discovery wells as well as additional targets identified on seismic data.
If successful, Tower plans to return in 2028 to drill production wells and begin output using a mobile production unit. Tower Resources shares were 5% higher on the news.
Tower Resources Chairman & CEO, Jeremy Asher, said: “We are very happy to share this long-awaited news with shareholders. In addition to recognising the effort of TRCSA’s Managing Director, M Dairou, in steering our file through the various stages of approval, I wish to offer my personal thanks, as well as the Company’s thanks, to the President and Prime Minister of the Republic of Cameroon and their staff, including, in particular, the President’s Director of Civil Cabinet, and also the Minister of Mines, Industry and Technological Development, and our friends at the Societé Nationale des Hydrocarbures and the British High Commissioner in Cameroon, for their support through this process.”