Tower Resources pushes ahead as resource potential grows
- Tower Resources submits Cameroon farmout documentation for ministerial approval
- Tower Resources CEO updates on Cameroon farm-out and £500k fundraise
Quick facts: Tower Resources PLC
Price: 0.33 GBX
Market Cap: £6.96 m
About the company
Tower Resources is building an African-based exploration and production group, which intends to have a balanced portfolio ranging from exploration through appraisal to production, primarily through its own origination of opportunities and their organic development.
How it is doing
The package of documents is being submitted to the Minister of Mines, Industry and Technological Development (MINMIDT) today as per the Cameroon Petroleum Code.
Completion of the farm-out is still subject to two conditions precedent: the financing contingency requiring Beluga's shareholders' approval, and the MINMIDT approval.
"We cannot be sure how long the MINMIDT approval may take as it can be as long as 60 days, but we hope it will come much sooner, allowing us to complete the farmout sooner,” said Tower Resources chief executive Jeremy Asher.
It comes after Tower yesterday landed a key and long anticipated farm-out transaction which will enable the drilling of the NJOM-3 well in the Thali production sharing contract area in Cameroon.
The deal delivers US$15mln towards the costs of the NJOM-3 well, which is presently estimated to cost US$16.8mln (of which some US$3mln is already spent). Well costs above US$15mln will be funded pro-rata.
What management says
Tower Resources PLC's (LON:TRP) Jeremy Asher speaks to Proactive London's Andrew Scott soon after announcing they've raised £500,000 to provide working capital while waiting for a farm-out agreement for its Thali block in Cameroon to complete.
Asher also talks to the recent coronavirus outbreak and how he feels they're well positioned to ride out any uncertainty as well as this morning's dramatic fall in the oil price.
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