Tower Resources PLC (LON:TRP) highlighted that its partner in the Algoa-Gamtoos licence, in South Africa, is launching a farm-out process aimed to fund new seismic exploration which would set up future drilling efforts.
ENVOI Limited has been appointed to conduct the process on behalf of partner New Age Energy as well as Tower’s wholly owned Rift Petroleum subsidiary.
The envisaged new 3D seismic survey would focus on the Gamtoos basin and/or the South Outeniqua basin (an area presently being targeted by majors like Total and Exxon).
Prospects identified via the new seismic would be high-grade and ultimately be tested by drilling in the future, the licence requires a well before the end of December 2023.
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The Algoa-Gamtoos licence is presently estimated to contain some 510mln barrels of potential resources.
"We are delighted with the encouraging work that the operator has performed on the Algoa-Gamtoos License and the appointment of ENVOI to manage the farm-out process,” said Jeremy Asher, Tower chief executive.
“We look forward to seeing further 3D data which should enable us to identify, with our partners, the best locations for drilling.
“We believe that each of the three plays on the Algoa-Gamtoos licence is interesting and any one, or all three of them, can justify further exploration and we look forward to providing further updates as the farm-out process progresses."