Tower Resources PLC (AIM:TRP) expects its farm-out deal with Beluga Energy will now advance though it still awaits formal approval from the Cameroon authorities.
Under a process in the Cameroon Petroleum Code, the company on September 21 requested approval of the proposed transaction and a designated 60-day period has now elapsed without any notification that the government objects to the deal.
The company said it believes the conditions for the approval have been met and it now awaits a formal letter from the authorities to confirm.
“While the company waits for a formal decret, Beluga continues to work on its financing process, and the company continues to work with the intended rig provider and service companies on the schedule and terms for the NJOM-3 well,” Tower said in a statement.
Tower struck the deal with Beluga in August. It sees Beluga acquire a 49% non-operated stake in the Thali production sharing contract (PSC) in return for US$15mln of the estimated US$16.8mln cost to drill the planned NJOM-3 well.
The spud of NJOM-3 is expected in the first quarter of 2022.