Tower Resources PLC (LON:TRP) have told the market that they are planning to spud the NJOM-3 well.
This well is located on the Thali licence, which is in Cameroon. Tower have said that these operations are set to commence in June, however the date is still flexible as it could take longer than expected.
The oil and gas exploration firm said that long lead items are already at its base in Douala. However, some testing equipment needs to be moved before the well is spudded, along with the relevant personnel.
Tower Resources said:
“The Company has made considerable progress in farm-out discussions with a number of parties regarding some or all of the well funding, including exchanging draft term sheets, following a pause in discussions that took place while the Company was waiting for formal confirmation of the extension of the current exploration period of the Thali PSC. The Company believes that it will be able to complete a farm-out within its desired timeframe for the NJOM-3 well although there can be no certainty as to timing or eventual outcome of such discussions.”
Tower Resources’ joint venture
In October, Tower Resources announced that they had pursed a joint venture with an undisclosed oil major.
The Company stated that it had given technical and commercial information to an ‘international oil company’ with a view to spark discussions of a potential joint venture.
The announcement follows preliminary discussions held earlier in the year, and is focused on prospective co-operation on Tower Resources’ Namibian Blocks venture.
“This process is at a very early stage, and may not lead to any agreement. However, it does provide a timely reminder that, in addition to our Cameroon appraisal and development project, the Company has two extremely attractive exploration opportunities in Namibia and South Africa.”
Tower are certainly making progress in Cameroon, which is a country which might not have as much focus when it comes to oil and gas exploration.
Tower Resources should remain confident and with the backing of the joint venture – shareholders will hope that exploration can result in high yield.
Shares in Tower Resources trade at 0.48p (-9.14%). 19/2/20 12:08BST.
