Tower Resources PLC (AIM:TRP) is now entering the final countdown to its hotly anticipated funding deal, to allow its drilling of the NJOM-3 well in Cameroon.
The company, in its interim results statement out today, told investors it has a proposal for a farm-out to "a substantial upstream company", and it is now in discussions with the new potential partner.
Tower noted that the proposal “should provide sufficient funds to drill the NJOM-3 well”.
Multiple interested parties have expressed interest in the project and an alternative proposal was also made by a different party, but that included only partial funding of the planned well.
Tower, meanwhile, highlighted that for NJOM-3 there are now more rigs available to the company and, subject to the funding deal, it intends to start drilling in the new year.
“We believe that we are now close to completing the financing for the NJOM-3 well in Cameroon, and remain on track to spud the well in early 2025,” chief executive Jeremy Asher said in a statement.
The farm-out and the NJOM-3 well promise to unlock a substantial project, should both deliver as Tower anticipates, and the company is already lining up the next phases for the asset.
“We also have two parallel sets of bank discussions underway with multiple banks, one for longer term development financing of the next three wells we have planned for the Njonji structure; and one for short term development, which would supplement a farm-out to finance putting NJOM-3 into production earlier, while still working on the next three wells,” Asher said.
“We are keeping an open mind on these options, and discussing them in detail with both our banks and prospective farm-out partners.
“We expect to reach a conclusion on this short-term production option and bank financing in the coming months, before drilling the well.”
Asher, meanwhile, added: “While we are now very confident of achieving a positive funding result, there can be no guarantees until we have signed definitive agreements.”
Elsewhere in Tower’s portfolio, the company noted an extension of the Initial Exploration Period of its PEL 96 license in Namibia until October 31, 2024. This extension allowed more time for further evaluation and planning for the First Renewal Period, which could last an additional 2-3 years.
In terms of financials, the pre-revenue firm reported a $407,289 for the fist half of 2024.