Tower Resources PLC (AIM:TRP) financial results statement, for 2024, highlighted a period that was “very productive” and set up successes that are now driving the business in 2025.
Most notably, the firm’s ‘transformational’ farm-out deal with Prime Global Energies for the Thali project offshore Cameroon and its exploration area offshore Namibia.
The farm-out, a deal for 42.5% of Thali, delivers to Tower $15 million of cash to fund the drilling of the NJOM-3 well later this year. It was inked in January, and the company is anticipating the pivotal well will be drilled in the fourth quarter (subject to government approvals).
“2024 saw a great deal of work carried out on our company's licenses, which is already bearing fruit in 2025,” chief executive Jeremy Asher said.
Asher added: “We hope that the rest of 2025 will be even better, and in particular we hope to see the NJOM-3 well spudded before the current year-end, rig availability permitting.”
The Tower boss, meanwhile, noted that efforts are underway to secure and confirm a rig for the project (after prior plans to use Borr’s Norve rig were stifled by a delayed drill schedule).
“The easing of the market for jack-up rigs, in particular, has also been helpful for us, and mitigates any regret we might otherwise have felt about being unable to proceed with the Norve as originally planned in 2024,” Asher said.
“Day rates for jack-up rigs in the region are now substantially lower than they were in early 2024 when we contracted for the Norve. In addition, we have been helped by the fact that a couple of our neighbours also require rigs for drilling campaigns to begin around the end of 2025.
“If we can use the same rig and some of the same services, we should be able to reduce the mobilisation and demobilisation costs associated with the well.”
Asher noted that details about the ongoing rig negotiations remain confidential, but he was “now very confident of their successful conclusion.”
In Namibia, he meanwhile called for patience as the government is “extremely busy” following a recent election, and as officials are also dealing with a significant ramp-up of activity related to the large Orange basin discoveries.
In terms of Tower’s financials, the pre-revenue explorer reported a full-year loss of $983,620 and said it ended 2024 with just under $285,000 of cash.
Subsequently, in 2025, Tower received cash injections related to the farm-out.