Tower Resources PLC (AIM:TRP) highlighted financing opportunities as well as progress in its exploration and evaluation activities as it released its preliminary results for the 12 months ended 31 December 2022.
The Africa-focused oil and gas company said it has been actively pursuing financing opportunities, including ongoing negotiations for a term loan of approximately US$7mln with BGFI Bank Group and discussions for asset-level financing with multiple parties.
At the end of the reporting period, Tower had a cash balance of US$231,000, up from US$10,000 in 2021.
In Cameroon, Tower Resources allocated US$3.1mln towards the Thali Production Sharing Contract (PSC) during the year, with a formal request for an extension of the First Exploration Period of the PSC currently under review by the Minister of Mines, Industry, and Technological Development.
The company said it remains in discussions with rig owners and operators to secure rig availability for drilling the NJOM-3 well in the third and/or fourth quarter of 2023.
Over the year, Tower Resources updated its resource estimates and risk profiles for the reservoirs linked to the NJOM-1 and NJOM-2 discovery wells, resulting in a significant reduction in risk attributed to the PS9 Sup and PS3 HW reservoirs. The revised estimates now place the total risked pMean prospective resources at 35.4mln barrels.
In South Africa, Tower Resources' operator, NewAge, has been making progress towards acquiring 3D seismic data over the permit area. In Namibia, the company conducted basin modeling to support the evaluation of identified leads in PEL 96.
The company said it plans to proceed with more detailed geological and geophysical analysis, aiming to acquire new 3D seismic data over the most promising leads/prospects.