Tower Resources PLC (LON:TRP) is discussing a partnership with an international oil major for its blocks in Namibia.
The company is targeting December for spudding the Njonji-3 well in Cameroon
Prospect has gross mean contingent resources of 18mln barrels (MMbbl) of oil across the proven Njonji-1 and Njonji-2 fault blocks with low/best/high estimates of 5/15/34 MMbbls respectively
Development contingency probability is 80% on the first phase and 70% on the second phase.
Company also has licence next door to huge recent find offshore South Africa
How is it doing
Thali also has a mean figure of 111 MMbbls of oil identified across four prospects in the northern part of the Thali licence and 20 MMbbls of oil identified at the Njonji South and Njonji South-West fault blocks.
Using a 10% discount the value of the prospective resources is US$82mln.
Jeremy Asher, chairman and chief executive of Tower, said the group expected the Njonji-3 well to transform the 18mln barrels of Pmean contingent resources on the Njonji structure into reserves, which would be “transformative” for the project and Tower.
For the six months ended 30 June, the AIM-listed explorer reported a pre-tax loss of US$1.6mln, down from a US$3.3mln loss a year ago, while no revenues were made.
The Njonji-3 well will be drilled to a total depth of 1,100 metres intersecting at least three reservoir zones already identified.
In September, Tower said that due to preparation issues at the Njonji-3 well site caused by the previous license operator, Total, a realistic date for spudding the well would now be around December as it would need to conduct a site survey in either October or November.
Elsewhere, Tower has a 50% stake in the Algoa-Gamtoos exploration area offshore South Africa that sits immediately adjacent to Total’s huge gas condensate discovery at Brulpadda.
Total encountered 57 metres of net pay in Lower Cretaceous reservoirs with an estimated one billion barrels at least of condensate.
Tower’s Algoa-Gamtoos contains an area of the same deepwater basin margin.
The group also has an 80% interest in three exploration areas (blocks 1910A, 1911 and 1912B) that cover a total of 23,297 square kilometres in the Walvis Basin and Dolphin Graben offshore Namibia.
An initial four year exploration period requires a minimum spend of $5mln on work.
It will include the acquisition and reprocessing of existing 2D seismic data and new seismic.
What the boss says, chairman Jeremy Asher
“We are in fact one of the first people to take exploration licences [in Namibia] back in 2006 and we had pretty much first choice of the blocks.”
“The exploration blocks that we have, both this one [in Namibia] and the block in South Africa, where we are next door to Total’s Brulpadda block, are very attractive exploration wells and either one of those can create a huge amount of value for the company.”
Finance and spudding of NJ0M3 well
Results from NJ0M3 well