The first half results for Tower Resources PLC (AIM:TRP) was marked by important progress in Cameroon where a farm-out transaction was agreed, in August, and preparations are now underway for the hotly anticipated NJOM-3 well.
Tower agreed the farm-out deal with Beluga Energy which cover most of the anticipated drilling costs, in return for a 49% interest in the project and a royalty over future revenues.
In Thursday’s results statement Tower said that whilst a 2021 spud is theoretically possible management believes he most likely timing for the well is in the first quarter 2022, and presently two possible rig slots are being considered.
Commenting on the recent progress, Tower said: “The first six months of 2021 have been very positive for our company, in marked contrast to the first six months of 2020, and the progress we have made during this period has, so far, been carried through the third quarter.
“We were delighted to agree the farm-out to Beluga Energy, and over the last two months we have moved forward with negotiation of a fresh rig contract and with resumption of discussions with the service companies to finalise both terms and schedule for the drilling and testing of the NJOM-3 well.
“It took a little longer to finalise the full documentation of the farm-out than we had hoped but this was still achieved quite rapidly, and the documents are now with the relevant Cameroon Government bodies, and also with Beluga's financiers.”
In terms of financial results, the pre-revenue firm reported a nominal loss and it ended the period with US$125,030 of cash – preceding a £1.5mln equity raise in August.