REG - Tower Resources PLC - Namibia and Cameroon Update

Tower ResourcesAnnouncement

07/03/2025 07:15

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RNS Number : 7303Z  Tower Resources PLC  07 March 2025

 

7 March 2025

Tower Resources plc

("Tower" or the "Company")

Namibia and Cameroon Update

 

Tower Resources plc (AIM: TRP), the AIM-listed oil and gas company focused on
Africa, is pleased to announce that its wholly-owned subsidiary Tower
Resources (Namibia) Limited ("TRNL") has agreed to purchase an additional 5%
interest in the PEL96 license offshore Namibia from its local partner, ZM
Fourteen Investment (Pty) Ltd ("ZM"), and is also pleased to provide investors
with a general update on preparations for drilling the NJOM-3 well on the
Thali license, offshore Cameroon.

 

Namibia

 

TRNL has agreed to purchase a 5% interest in the PEL96 license from ZM, half
of ZM's current 10% interest in the license, for a cash consideration on
completion of US$375,000. ZM's remaining 5% interest in the PEL96 license will
be fully carried through to production, as is the 10% interest held by the
National Petroleum Corporation of Namibia (Proprietary) Limited ("NAMCOR").
TRNL has already funded all of the expenses associated with ZM's interest to
date, so no further reimbursement of past costs is due to ZM. Completion of
the purchase is subject to usual conditions precedent, identical to those in
the farm-out agreement that TRNL concluded with Prime Global Energies Limited
("Prime") in January 2025, including Namibian government approvals and consent
of the other partners in the PEL96 license, and the two transactions are
expected to complete at or about the same time, as both are subject to similar
government consents. ZM has also confirmed its consent to the TRNL-Prime
farm-out agreement. Tower expects to fund this acquisition on behalf of TRNL
using a portion of the substantial amount of cash it is due to receive from
the TRNL-Prime farm-out completion.

 

Following completion of this purchase from ZM, and the farm-out of a 25%
interest in the license to Prime, the interests in the PEL96 license will be
as follows:

 

            TRNL                60% (Operator)

            Prime                25%

            NAMCOR          10% (Carried)

            ZM                   5%  (Carried)

 

The next step in the approval process in Namibia is to provide details of both
the TRNL-Prime farm-out agreement and this latest TRNL-ZM agreement to NAMCOR,
to seek NAMCOR's consent to both transactions, after which the full package of
documents and consents will be forwarded to the Ministry of Mines and Energy
("MME") for Ministerial approval. However, the Ministry is already aware of
both transactions and is expecting the formal documentation in due course.

 

Tower still anticipates that the completion of the TRNL-Prime farm-out
agreement may occur before the end of March, but as previously explained, this
depends on the approval processes which involve several counterparties.
However, the Company remains confident that the approvals will be provided,
and that both the TRNL-Prime transaction and this latest TRNL-ZM transaction
will be completed as anticipated in the Company's announcement on 10 January
2025.

 

Cameroon

 

Tower Resources Cameroon SA ("TRCSA") has already submitted the TRCSA-Prime
farm-out agreement documentation and the request for a year's further
extension of the First Exploration Period of the Thali license to the Cameroon
Minister of Mines, Industry and Technological Development ("MINMIDT") for
approval in January, and has discussed both matters with MINMIDT, the Societe
Nationale des Hydrocarbures ("SNH") and the Cameroon Prime Minister. The
Company's understanding is that the matter is now with the Office of the
Presidency and awaiting formal Presidential approval. As with the Namibia
farm-out, the Company remains confident that the approvals will be provided,
and still hopes this may be around the end of March.

 

The Company has been offered a number of rigs which could be available at
different times between June and December 2025, and on different, but
reasonable, terms. The Company hopes to make a rig selection decision, albeit
subject to the requisite approvals being granted, at the end of March or
during April. For commercial reasons, the Company will not be commenting
further on these discussions until they are finalised.

 

In order to support the procurement process for the rig and associated
services, and to minimise the time required between the farm-out completion
and being ready to take delivery of the rig, the Company has already started
to make selective hires in anticipation of drilling, initially through
flexible contractor agreements. This includes a Senior Operations Geologist
reporting to Mark Enfield, Tower's Exploration Director, and a Senior Drilling
Engineer reporting to the Company's Drilling Manager, Phil Church at Bedrock
Drilling. Tower is also adding a highly experienced member of staff to its
financial team to support the ongoing discussions regarding future bank
financing.

 

Tower Resources Chairman & CEO, Jeremy Asher, commented:

 

"We are pleased with the progress we are making and also with the acquisition
of this small additional interest in the Namibian PEL96 from our local partner
ZM. This acquisition reflects our wish for ZM to move to a more sustainable
fully-carried position, and also reflects our faith in the value of the PEL96
license at the same time that we are bringing in a new partner to manage risk
and share funding obligations.

 

"We are already working hard on the well planning in Cameroon, as we are
confident about the approval process, and want to ensure we are ready to drill
the NJOM-3 well in good time. Forward planning usually improves both time and
budget performance. I look forward to keeping you updated with our further
progress."

 

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.

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