Tower Resources PLC Cameroon update (0341U)
March 31 2021 - 1:00AM
UK Regulatory
TIDMTRP
RNS Number : 0341U
Tower Resources PLC
31 March 2021
31 March 2021
Tower Resources plc
("Tower" or the "Company")
Cameroon update
Tower Resources plc (TRP.L, TRP LN), the AIM listed oil and gas
company with its focus on Africa , is pleased to announce an update
regarding planned operations on the Thali license (the "PSC") in
Cameroon held by its subsidiary Tower Resources Cameroon SA
("TRCSA"), and the NJOM-3 well.
The Government of the Republic of Cameroon has notified TRCSA
that the President of the Republic has approved a further extension
of the First Exploration Period of the PSC, and the Company is now
awaiting a formal confirmation from the Minister of Mines, Industry
and Technological Development of the details of the extension. As
previously announced, the Company declared Force Majeure in March
2020 in respect of the First Exploration Period of the PSC, in
light of the restrictions required to combat the Covid-19
pandemic.
The logistics involved in coordinating personnel and equipment
from multiple service providers and locations (as required for an
appraisal well with extensive testing) remain challenging, but the
Company has a plan to complete drilling of the NJOM-3 well safely
in the present circumstances. The Company intends to finalise a
schedule with the multiple service companies involved, although
this still depends on pandemic developments and the individual
service companies' circumstances. But a formal extension of the
First Exploration Period is an important element of finalising a
schedule as it reduces the uncertainty associated with relying on
the current state of Force Majeure, as well as underscoring the
support of the Republic of Cameroon for the Thali project.
The Company also reminds investors that it will be reviewing the
payment of director fees for the second quarter after the market
close today, as usual at the end of a calendar quarter, and will
also be reviewing long term incentive (share option) awards for
2021 at the same time.
Jeremy Asher, Chairman and Chief Executive Officer,
commented:
"We are grateful to the Republic of Cameroon for their continued
support of the Thali project, and in particular to the President of
the Republic, the Secretary General of the Office of the
Presidency, and the Prime Minister for taking a direct interest in
our activity, as well as the Minister of Mines, Industry and
Technological Development and his staff and all the staff at the
Societé Nationale de Hydrocarbures who have supported us during
this First Exploration Period. We are looking forward to seeing the
NJOM-3 well drilled as soon as possible, and we will notify
investors when we have more material developments."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Contacts
Tower Resources plc +44 20 7157 9625
Jeremy Asher
Chairman and CEO
Andrew Matharu
VP - Corporate Affairs
SP Angel Corporate Finance
LLP
Nominated Adviser and Joint
Broker
Stuart Gledhill
Caroline Rowe +44 20 3470 0470
ETX Capital
Joint Broker
Elliot Hance +44 20 7392 1436
Turner Pope Investments
(TPI) Limited
Joint Broker
Andy Thacker
Zoe Alexander +44 20 3657 0050
Panmure Gordon (UK) Limited
Joint Broker
Nick Lovering
Hugh Rich +44 20 7886 2500
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.
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 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) and published in March 2020 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 17.9 MMbbls of oil and
liquids across the proven Njonji-1 and Njonji-2 fault blocks;
-- Gross mean prospective resources of 19.8 MMbbls of oil and
liquids across the Njonji South and Njonji South-West fault
blocks;
-- Gross mean prospective resources of 111.3 MMbbls of oil and
liquids across four identified prospects located in the Dissoni
South and Idenao areas in the northern part of the Thali
licence;
-- Calculated Best Estimate NPV10 of US$119 million and EMV10
US$91 million for the contingent resources, based on March 2020
Brent price for 2021 of approximately $44/barrel.
In accordance with the guidelines for the AIM market of the
London Stock Exchange, Dr Mark Enfield, BSc, PhD, a Director of
Tower Resources plc, who has over 30 years' experience in the oil
and gas industry, is the qualified person that has reviewed and
approved the technical content of this announcement.
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