Tower Resources PLC (AIM:TRP, FRA:ULF1), the oil and gas company focused on Africa, has received formal approval from Namibia's Ministry of Industries, Mines and Energy for the farm-out of its PEL96 licence offshore Namibia to Prime Global Energies.
The approval clears the only outstanding condition precedent under the farm-out contract, which was first announced in January 2025.
Tower will now issue a notice of completion to Prime and send a draft deed of assignment, novation and amendment to the ministry and its partners, with completion expected to follow shortly.
A separate deal remains unresolved.
The company is still awaiting approval for the proposed purchase by its wholly owned subsidiary, Tower Resources (Namibia), of an additional 5% interest in PEL96 from local partner ZM Fourteen Investment.
That acquisition, announced in March 2025, has been delayed to the point where the parties are no longer bound to complete it, though they continue to discuss its execution.
Jeremy Asher, chairman and chief executive, thanked officials at the ministry, the Upstream Petroleum Unit and state oil company NAMCOR for their review and engagement throughout the process.
He described Prime as a highly favourable partner for the licence, citing its technical and financial resources and its track record of operational success.
Asher said the company looked forward to working alongside Prime and other stakeholders to advance the work programme offshore Namibia.
PEL96 sits in Namibia's offshore waters, an area that has drawn growing interest from explorers following a series of major oil discoveries in the country's deepwater basins
