Tower Resources PLC (LON:TRP) has told investors that its 50% owned Algoa-Gamtoos license joint venture, offshore South Africa, will advance the project into the next phase of exploration.
Operator New Age Energy, which also has 50% of the project, has formally agreed a second exploration period under the licence, Tower said in a statement.
It will run for a two-year period and includes the obligation to shoot 300 square kilometres of 3D seismic data.
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The Algoa-Gamtoos license is located adjacent to Total’s Block 11B/12B which is host to the recently announced significant gas and condensate discovery in the Luiperd-1X well.
Tower noted that Algoa-Gamtoos also contains the southern deep-water basin margin of the Outeniqua Basin, where Total's Brulpadda and Luiperd-1X wells were targeted.
Luiperd-1X encountered some 73 meters of good quality net pay in 85 meters of gross sands in the main target interval.
Tower said reported that well results showed the well flowed at a constrained rate of 9,820 barrels of oil equivalent per day and that the open flow potential is expected to be significantly higher.
For Algoa-Gamtoos, New Age is expecting to have updated analysis and volumetric estimates available in January 2021. This data will be made available to potential farm-in partners.
