Tower Resources moving forward after Thali reserves report

Africa-focussed oil and gas company Tower Resources announced the results of an independent reserves report on Thursday, across its Thali licence, offshore Cameroon, in which it held a 100% licence interest.

The AIM-traded firm reported gross mean contingent resources of 18 MMbbls of oil across the proven Njonji-1 and Njonji-2 fault blocks, with low/best/high estimates of 5/15/34 MMbbls, and with a development contingency probability of 80% on the first phase and 70% on the second phase.

Gross mean prospective resources consisted of 20 MMbbls of oil across the Njonji South and Njonji South-West fault blocks, with low/best/high estimates of 5/16/39 MMbbls.

It said gross mean prospective resources totalled 111 MMbbls of oil across four identified prospects located in the Dissoni South and Idenao areas in the northern part of the Thali licence, with low/best/high estimates of 21/84/237 MMbbls.

The company reported calculated EMV10s of $118m for the contingent resources, and $82m for the prospective resources, respectively.

It said a letter of commitment had been executed to secure a “modern and suitable” jack-up rig for the drilling of the NJOM-3 well in the second quarter of 2019.

An offer of financing from an industry partner for the Thali licence had also been received, and was being considered alongside other funding options, the board reported.

“We are delighted to present our reserve report on the Thali licence in Cameroon, the first such report on this licence,” said Tower’s chairman and chief executive officer Jeremy Asher.

“The 18 million barrels of Pmean contingent resources on the Njonji structure, which we expect the NJOM-3 well to transform into Reserves, are crucial and transformative for our Cameroon project.”

Asher said the company was already planning for production from NJOM-3 as early as the end of 2019, with three further wells being designed to increase production and also access further reserves.

“The current EMV10 of $118m is a good starting point for us to aim for in terms of delivering value to shareholders, but we hope to go much further as the development unfolds.

“We are also pleased to be negotiating final terms of a contract for an excellent jack-up rig that is already proven in Cameroon waters and other West African territories.”