Tower Resources PLC Signature of Thali PSC, offshore Cameroon (1689Z)
September 16 2015 - 02:00AM
UK Regulatory
TIDMTRP
RNS Number : 1689Z
Tower Resources PLC
16 September 2015
Tower Resources plc
Signature of Thali Production Sharing Contract, offshore
Cameroon
16 September 2015
Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)),
the AIM-listed Africa-focussed oil and gas exploration company, is
delighted to announce the signing of the shallow water Thali
(formerly known as "Dissoni") Production Sharing Contract ("PSC"),
offshore Cameroon.
The PSC signing ceremony took place on 15 September 2015 at the
offices of Société Nationale des Hydrocarbures ("SNH") in Yaoundé,
Cameroon, in the presence of a delegation which included the
Minister of Mines, Industry and Technological Development, His
Excellency Mr Emmanuel Bonde, and the Executive General Manager of
SNH, Mr Adolphe Moudiki.
Tower's signature of the Thali PSC represents a low cost entry
into a mature region with low-risk exploration/appraisal targets
and the potential for significant upside. Tower has a 100% interest
in the Thali PSC, and the terms of the PSC include three
exploration phases, including the minimum work commitment of the
Initial Exploration Period, outlined below:
-- Initial Exploration Period (3 Years): Consisting of
geological and geophysical studies, 100km(2) of 3D seismic
acquisition and a commitment well with a minimum financial
commitment of US$13 million.
-- First Renewal Period (2 Years): Consisting of one exploration
or appraisal well with a minimum financial commitment of US$15
million.
-- Second Renewal Period (2 Years): Consisting of one
exploration or appraisal well with a minimum financial commitment
of US$15 million.
Tower has the option of relinquishing the PSC on completion of
each Period on condition that the minimum work commitment has been
met.
The Thali PSC covers an area of 119.2 km(2), 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 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.
The Thali Block has the potential to hold up to four distinct
play systems, including the established play in which three
discovery wells, two gas (Rumpi-1, Njonji-2) and one oil
(Njonji-1), have already been drilled on the Block. There are 7
million barrels of oil already discovered on the Block. These are
currently viewed as sub-commercial discoveries, but once better
seismic imaging has been achieved Tower sees potential to add
incremental oil reserves to achieve commerciality. There is also
significant potential to develop prospects at deeper levels, in
both structural and stratigraphic traps, once better imaging has
been achieved. The existence of infrastructure in adjacent blocks
means that the development of a 20 million barrel oil field has the
potential to be economically viable at current oil prices.
Tower's initial priority will be the acquisition of 3D seismic
in the first half of 2016. The seismic will be used to update the
existing 24 year old data set to allow better resolution of shallow
plays as well as imaging of deeper sections. Tower expects to be
drilling in 2017/18.
The market downturn in the services sector presents an
opportunity for the Company to leverage lower seismic and drilling
costs and a partner will be sought in due course to share Tower's
financial commitment and provide additional technical input.
Graeme Thomson, CEO, commented: "We are delighted to be awarded
the Thali PSC and look forward to working closely with SNH as we
develop the prospectivity of this exciting acreage. Our entry into
Cameroon marks a shift in our risk profile from frontier to proven
basins and introduces an asset with existing discoveries into the
Tower portfolio. The Thali Block provides Tower with lower risk
exploration and appraisal potential in this shallow-water
proven-producing region and provides a base from which the Company
can expand its portfolio in Cameroon."
Contacts
Tower Resources
Graeme Thomson (CEO)
Nigel Quinton (Head of Exploration)
Andrew Matharu (VP - Corporate Affairs)
+44 20 7253 6639
Peel Hunt LLP (Nominated Adviser and Joint Broker)
Richard Crichton/Ross Allister
+44 20 7418 8900
GMP Securities Europe LLP (Joint Broker)
Rob Collins/Emily Morris
+44 20 7647 2800
Vigo Communications
Chris McMahon/ Peter Reilly
+44 20 7016 9572
Notes
In accordance with the guidelines for the AIM market of the
London Stock Exchange, Nigel Quinton, BA, MA, FGS, Head of
Exploration for 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCLAMLTMBTBBJA
(END) Dow Jones Newswires
September 16, 2015 02:00 ET (06:00 GMT)
Tower Resources (LSE:TRP)
Historical Stock Chart
From Feb 2024 to Mar 2024
Tower Resources (LSE:TRP)
Historical Stock Chart
From Mar 2023 to Mar 2024