REG - Tower Resources PLC - Namibia Update

Tower ResourcesAnnouncement

02/08/2024 07:00

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RNS Number : 8985Y  Tower Resources PLC  02 August 2024

 

 

2 August 2024

Tower Resources plc

("Tower" or the "Company")

Namibia Update

 

Tower Resources plc (AIM: TRP), the AIM-listed oil and gas company focused on
Africa, is pleased to provide the following update on its activities in
respect of its PEL 96 license, offshore Namibia.

 

Highlights

 

·      Tower has been notified by the Namibian Ministry of Mines and
Energy ("MME") of its agreement to the extension of the Initial Exploration
Period of PEL 96 to October 31, 2024 and has invited the Company to apply to
enter the First Renewal Period of PEL 96, for a period of 2-3 further years.

·      The remaining work commitment for the Initial Exploration Period
is already substantially complete, and the MME has also agreed to defer the
Company's commitment to acquire 1,000 square kilometres ("km(2)") of new 3D
seismic data to the First Renewal Period.

·      The Company is continuing to work on the evaluation of large
stratigraphic and structural leads and prospects and plans to reprocess the
previously acquired 2D seismic data over large areas of the license both in
the remainder of the Initial Exploration Period and in the First Renewal
Period.

 

The Company has been notified by the Namibian MME of its agreement to the
extension of the Initial Exploration Period of PEL 96 to October 31, 2024 and
has invited the Company to apply to enter the First Renewal Period of PEL 96,
for a period of 2-3 further years. The MME has also agreed to defer the
Company's commitment to acquire 1,000 km(2) of new 3D seismic data to the
First Renewal Period.

 

The remaining work commitment for the Initial Exploration Period, comprising
the oil seep satellite analysis, play fairway analysis, development of an
updated prospect and lead inventory, and the high-grading of acreage, is
already substantially complete. However, the Company is continuing to work on
the evaluation of large stratigraphic and structural leads and prospects and
plans to reprocess the previously acquired 2D seismic data over large areas of
the license both in the remainder of the Initial Exploration Period and in the
First Renewal Period, in order to support the optimal selection of an area for
the further 3D data acquisition.

 

The evaluation of leads and prospects has required further time commitment due
to the encouraging discovery of a large number of substantial stratigraphic
traps, in addition to the large anticlines and other structural traps that had
already been identified. Our basin modelling work, completed in 2023, had
previously identified source rocks deep within the PEL96 portion of the
Dolphin Graben calculated to be mature for in excess of 100 to 150 billions of
barrels of oil generation, and also identified well-defined migration paths
for this oil, and this work has been shared with investors in the Technical
Presentation that the Company made to Africa Oil Week and posted on Tower's
website on 11 October 2023.  Since that time, the Company has reviewed and
interpreted in excess of 20,000 line kilometres of 2D seismic data across PEL
96. This has resulted in the identification of a substantial number of very
large stratigraphic traps in five main areas of the license, favourably
located adjacent to those deeper source rocks of the Dolphin Graben and the
migration paths we identified.

 

The results of this intensive technical effort have given Tower new and
favourable insights into the prospectivity of the acreage, however, it cannot
acquire new 3D seismic data over all of them in the next phase of work. Due to
the variability of quality or coverage of data over some of these leads, the
PEL 96 Joint Venture currently intends to reprocess the existing seismic data
in these areas to extract as much information as possible from the original
data files and significantly improve seismic data quality. The seismic
reprocessing work will enable the PEL 96 Joint Venture to make a final choice
regarding the optimal 3D data acquisition area - a view Tower shared with MME
in the Company's Technical Advisory Committee meeting in Windhoek last week.

 

The Company and its partners, alongside the MME, are all pleased by the number
of leads and prospects that are already identified, and look forward to
sharing more information about these when the further work has been completed.

 

Tower Resources Chairman & CEO, Jeremy Asher, commented:

 

"We are grateful to the Minister, the Hon. Tom K Alweendo MP,  the Executive
Director, Mr Penda Ithini, and the Petroleum Commissioner, Ms Maggy Shino, for
their continued support and enthusiasm for our PEL 96 project. Our view of the
prospectivity of PEL 96 has improved greatly since we began the current phase
of work in 2019, and we look forward to having sufficient data quality to
share a more detailed picture of the structures we wish to explore further
with the 3D data acquisition, as soon as we have it. In the meantime, we plan
to prepare a more detailed report summarising our findings to date, the main
conclusions of which we will share with investors in due course."

 

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

 Caroline Rowe

 Axis Capital Markets Limited         +44 203 026 2689

Joint Broker

 Lewis Jones

 Ben Tadd

 Novum Securities Ltd                 +44 20 7399 9400

Joint Broker

 Jon Bellis

 Colin Rowbury

 

Notes:

In accordance with the guidelines for the AIM market of the London Stock
Exchange, Dr Mark Enfield, BSc, PhD,  and a member of the Board of Tower
Resources plc, who has over 30 years' experience in the oil & gas
industry, is the qualified person that has reviewed and approved the technical
content of this announcement.

 

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.

 

 

 

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