Tower Resources planning next steps at Thali

The AIM-traded firm said its current view, subject to further work and confirmation of equipment availability, is that it would like to spud the well during June.

Long lead items were already at its base in Douala, Tower noted, adding that some testing equipment would still need to be mobilised prior to spudding the well, along with personnel, so the intended date remained subject to change.

“The company has made considerable progress in farm-out discussions with a number of parties regarding some or all of the well funding, including exchanging draft term sheets, following a pause in discussions that took place while the company was waiting for formal confirmation of the extension of the current exploration period of the Thali PSC,” Tower Resources said in its statement.

“The company believes that it will be able to complete a farm-out within its desired timeframe for the NJOM-3 well although there can be no certainty as to timing or eventual outcome of such discussions.”

Tower added that it had updated its corporate presentation with a revised indicative timeline for the development of the Njonji structure, and was now preparing updated cash flows and working with OIL to prepare an updated version of the reserve report.

“The company will update its corporate presentation further when the updated reserve report is complete, and will also make the executive summary of the updated reserve report available on its website at that time.”

At 1000 GMT, shares in Tower Resources were down 8.1% at 0.48p.