REG - Tower Resources PLC - Cameroon Farm-out Update

Tower ResourcesAnnouncement

22/11/2021 07:05

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RNS Number : 0396T  Tower Resources PLC  22 November 2021

22 November 2021

 

Tower Resources plc

Cameroon Farm-out 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 update regarding its farm-out to Beluga Energy Limited ("Beluga") of
a 49% non-operating working interest in its Thali Production Sharing Contract
("PSC") in Cameroon, conducted through its wholly-owned subsidiary Tower
Resources Cameroon S.A ("TRCSA").

The Cameroon Petroleum Code provides that approval of a transaction of this
type should be provided by the Minister of Mines, Industry and Technological
Development ("MINMIDT") within 60 days of 21(st) September 2021, when it was
formally requested, which means by Saturday 20(th) November 2021. To date,
Tower has received no objection to the transaction, nor any further request
for information from MINMIDT, and whilst Tower believes that the conditions
for the approval have been met, Tower is yet to receive a formal letter (a
"decret") confirming MINMIDT's approval of the transaction.

While the Company waits for a formal decret, Beluga continues to work on its
financing process, and the Company continues to work with the intended rig
provider and service companies on the schedule and terms for the NJOM-3 well.

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                  +44 20 7157 9625

 Jeremy Asher

Chairman and CEO

 Andrew Matharu

VP - Corporate Affairs

 SP Angel Corporate Finance LLP       +44 20 3470 0470

Nominated Adviser and Joint Broker

 Stuart Gledhill

 Caroline Rowe

 Novum Securities Limited             +44 20 7399 9400

Joint Broker

 Jon Belliss

 Colin Rowbury

 Panmure Gordon (UK) Limited          +44 20 7886 2500

Joint Broker

 Nick Lovering

 Hugh Rich

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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