Tower Resources PLC (AIM:TRP) has agreed to acquire an additional 5% stake in its PEL96 offshore licence in Namibia and is making preparations to drill the NJOM-3 well in Cameroon as it pushes forward with its African oil and gas projects.
The AIM-listed company will purchase the extra stake from local partner ZM Fourteen Investment for $375,000, increasing its holding in the license to 60%.
ZM will retain a fully carried 5% interest, alongside national oil company NAMCOR’s 10% carried stake and Prime Global Energies’ 25% interest.
The acquisition is subject to regulatory approvals, which Tower expects to receive around the same time as the completion of its farm-out agreement with Prime.
In Cameroon, Tower has submitted a request for a one-year extension of its Thali license and is awaiting final approval from the government. The company expects a decision from the Office of the Presidency by the end of March.
To prepare for drilling, Tower has started evaluating available rigs and expects to make a selection once approvals are granted. It has also begun hiring key personnel, including a senior geologist and drilling engineer, to ensure it can move quickly when drilling operations commence.
Chairman and CEO Jeremy Asher told investors: "We are pleased with the progress we are making and also with the acquisition of this small additional interest in the Namibian PEL96 from our local partner ZM.
"This acquisition reflects our wish for ZM to move to a more sustainable fully-carried position, and also reflects our faith in the value of the PEL96 license at the same time that we are bringing in a new partner to manage risk and share funding obligations.
"We are already working hard on the well planning in Cameroon, as we are confident about the approval process, and want to ensure we are ready to drill the NJOM-3 well in good time.
"Forward planning usually improves both time and budget performance. I look forward to keeping you updated with our further progress."