REG - Tower Resources PLC - Letter of Award for Rig Contract in Cameroon

Tower ResourcesAnnouncement

10/06/2025 07:00

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RNS Number : 0967M  Tower Resources PLC  10 June 2025

 

10 June 2025

 

Tower Resources plc

("Tower" or the "Company")

Letter of Award for Rig Contract in Cameroon

 

Tower Resources plc (AIM: TRP), the AIM-listed oil and gas company focused on
Africa, is pleased to announce that its subsidiary, Tower Resources Cameroon
SA ("TRCSA"), has issued a Letter of Award to Advanced Energy Systems S.A.E
("ADES"), an affiliate of ADES Holding, for the provision of a jack-up rig,
proposed to be the Admarine 510, to drill the NJOM-3 well on Tower's Thali
license in Cameroon in Q4 2025.

The Admarine 510, a GustoMSC CJ-46-X100-D triangular design three-legged
jackup unit, built in 2019, and capable of operating in water depth up to 375
ft, is just completing its five-yearly recertification project in Bahrain. The
rig has also recently been awarded a contract with Addax Petroleum for
operations in Cameroon, to commence in late 2025, and it is intended that the
rig will drill the NJOM-3 well for Tower before beginning operations with
Addax Petroleum.

The commercial terms of the ADES proposal to TRCSA are confidential, but the
fact that the Admarine 510 was already committed to move to Cameroon for other
operators has facilitated the discussions with the rig owner and resulted in
more favourable terms than the owner could have offered otherwise. The terms
are well in line with the Company's previous projections and compare very
favourably to offers received from other rig owners earlier this year and last
year.

The Letter of Award is subject to contract and usual conditions precedent,
including receipt of Government approvals in Cameroon and completion of
TRCSA's farm-out to Prime Global Energies Limited as announced on 10 January
2025.

 

Tower Resources Chairman & CEO, Jeremy Asher, commented:

"We are delighted to make this award, and are looking forward to working with
ADES on the NJOM-3 well this year. Our rig selection process has been made a
little more complex by the opportunity to coordinate our timing with that of
other nearby oil and gas companies, including Addax Petroleum in particular,
however I believe it has resulted in a very good commercial outcome for all
parties."

 

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 & CEO

 Andrew Matharu

 VP - Corporate Affairs

 BlytheRay                            +44 20 7138 3204

 Financial PR

 Tim Blythe

 Megan Ray

 SP Angel Corporate Finance LLP       +44 20 3470 0470

Nominated Adviser and Joint Broker

 Stuart Gledhill

 Jen Clarke

 Axis Capital Markets Limited         +44 203 026 2689

Joint Broker

 Lewis Jones

 Novum Securities Ltd                 +44 20 7399 9400

Joint Broker

 Jon Bellis

 Colin Rowbury

 

 

About Tower Resources

Tower Resources plc is an AIM listed energy company building a balanced
portfolio of energy opportunities in Africa across the exploration and
production cycle in oil and gas and beyond. The Company's current focus is on
advancing its operations in Cameroon to deliver cash flow through short-cycle
development and rapid production with long term upside, and de-risking
attractive exploration licenses through acquiring 3D seismic data in the
emerging oil and gas provinces of Namibia and South Africa, where world-class
discoveries have recently been made.

Tower's strategy is centred around stable jurisdictions that the Company knows
well and that offer excellent fiscal terms. Through its Directors and staff,
Tower has access to decades of expertise and experience in Cameroon and
Namibia, and its joint venture with New Age builds on years of experience in
South Africa.

About ADES Holding Company

ADES Holding Company, headquartered in Al Khobar in the Kingdom of Saudi
Arabia, is a world leading international drilling services provider. The
Company has over 8,000 employees and a fleet of 91 rigs across 12 countries,
including 40 onshore drilling rigs, 48 jackup offshore drilling rigs, two
jackup barges, and one mobile offshore production unit ("MOPU").

 

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