Tower Resources’ (LON:TRP) stake in its Kenyan exploration project has increased to 33.34% due to Premier Oil (LON:PMO) leaving the joint venture.
Premier Oil’s exit follows the Badada ‘duster’; the well in February failed to find commercial hydrocarbons, though some traces of gas were observed.
The FTSE 250 oil firm was previously the largest stakeholder with 55%.
Tower’s interest in the project has now increased from 15% to 33.34%, while the operator Taipan Resources subsidiary Lion Petroleum sees its stake increase from 30% to 66.66%.
The current licence period has been extended until November to allow Lion and Tower to evaluate the area’s remaining prospectively. This extension has given consideration to the fact that a significant portion of the area was subject to a conservation order which has prevented operations.
Legal action is ongoing in relation to the temporary injunction that was served on Lion in the latter part of 2014.
Tower said the extension to the licence will give the remaining joint venture partners time to review their strategy. No additional financial commitments were associated with the extension, it added.
Chief executive Graeme Thomson, in a statement, said: “Tower has increased its interest in Block 2B at nil cost and the six month extension to the first additional exploration period will provide joint venture partners the time necessary to finish a thorough assessment of the prospectivity on this large block."