Tower Resources PLC Cameroon Operational and Financing Update (3167K)
28 Agosto 2019 - 8:00AM
UK Regulatory
TIDMTRP
RNS Number : 3167K
Tower Resources PLC
28 August 2019
28 August 2019
Tower Resources plc
Cameroon Operational and Financing Update
Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)),
the AIM-listed oil and gas company with a focus on Africa, is
pleased to provide an update on operations on the Thali block in
Cameroon and on well financing.
As disclosed in the Company's operational update in May, the
Company received additional data from the original Total wells at
NJOM1 and NJOM2, which indicated that further site preparation work
would be required before the drilling rig for the NJOM-3 well is
moved to site. The most suitable vessel to undertake this site
preparation work is now en route to West Africa with the
expectation that this work can be completed during September
2019.
The Company had previously agreed with Vantage to defer the
commencement of its drilling contract in respect of the Topaz
Driller until after Vantage's current charter to another oil
company was completed. However, in the past few weeks a former
sister rig to the Topaz Driller, the COSL Seeker, has become
available in Cameroon after completing recent work for Addax. Given
the difficulty in matching up the schedule of the Topaz Driller
with availability of the site survey data, the Company yesterday
signed a Letter of Intent ("LOI") to use the COSL Seeker rig to
drill NJOM-3 instead of the Topaz Driller, and has released the
Topaz Driller. The day rate and other terms of the COSL agreement
are similar to the Vantage agreement, and while there may be some
additional costs for the mobilisation of test equipment to the COSL
Seeker on the current schedule, the Company also anticipates
significant savings in the cost of rig mobilisation and
demobilisation. In the aggregate, the Company does not presently
anticipate a material change in the total cost of the well as a
result of this change of rig.
The Company has notified the Societe Nationale de Hydrocarbures
("SNH") and the Government of Cameroon ("MINMIDT") of the changes
to the well schedule, and does not anticipate any difficulty in
proceeding with the well, despite the fact that the extension to
the first Exploration Period of the company's Production Sharing
Contract ("PSC") expires on 14 September 2019, since the well
remains an operation in progress.
As previously disclosed, the NJOM3 well will be drilled to a
total depth of 1,100 metres intersecting at least three reservoir
zones already identified by the NJOM1B and NJOM2 discovery wells
drilled on the Njonji structure by the previous operator Total. The
well is designed to confirm the greater reservoir thicknesses
observed on the reprocessed 3D seismic in the up-dip area of the
structure, and also evaluate additional reservoirs that were not
present in the areas where Total's wells are located. The NJOM3
well is designed to supplement Total's well data with a suite of
measurement and logging tools and drill stem test ("DST") flows to
surface. The Company's intention is then to suspend the well with a
view to subsequent completion as one of four initial production
wells on the structure, as envisaged in the Reserve Report prepared
by Oilfield International Limited (OIL) on 31 October 2018. This
first phase of development envisaged by the Reserve Report, aiming
to exploit the 2C contingent resources (Pmean 18 million barrels
oil, gross) already identified in the structure, aims to provide
significant production to Tower in 2020.
In respect of well financing, the Company is continuing farm-out
discussions with multiple parties who are currently undertaking due
diligence, and the Company is hoping to bring at least one of these
discussions to a conclusion in the near future, bearing in mind
both the operational schedule outlined above and also that the
Company's bridging loan facility agreement (the extension of which
was announced on 30 July 2019) falls due for repayment at the end
of August, subject to a grace period until 30 September 2019.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Contacts
Tower Resources plc info@towerresources.co.uk
Jeremy Asher
Chairman and CEO
Andrew Matharu
VP - Corporate Affairs
SP Angel Corporate Finance
LLP
Nominated Adviser +44 20 3470 0470
Stuart Gledhill
Caroline Rowe
Whitman Howard Limited
Joint Broker
Nick Lovering
Hugh Rich +44 20 7659 1234
Turner Pope Investments
(TPI) Limited
Joint Broker
Andy Thacker +44 20 3621 4120
Yellow Jersey PR Limited
Dominic Barretto +44 7768 537 739
Henry Wilkinson +44 7951 402 336
Notes:
Tower Resources Cameroon S.A, a wholly-owned subsidiary of Tower
Resources plc, holds a 100% interest in the shallow water Thali
(formerly known as "Dissoni") Production Sharing Contract (PSC), in
the Rio del Rey basin, offshore Cameroon. Tower was awarded the PSC
on 15 September 2015 for an Initial Exploration Period of 3 years,
which has been extended for a further year ending 15 September
2019.
The Thali PSC covers an area of 119.2 km(2), with water depths
ranging from 8 to 48 metres, and lies in the prolific Rio del Rey
basin, in the eastern part of the Niger Delta. The Rio del Rey
basin has, to date, produced over one billion barrels of oil and
has estimated remaining reserves of 1.2 billion barrels of oil
equivalent ("boe"), primarily within depths of less than 2,000
metres. The Rio del Rey is a sub-basin of the Niger Delta, an area
in which over 34.5 billion barrels of oil has been discovered, with
2.5 billion boe attributed to the Cameroonian section.
An independent Reserve Report conducted by Oilfield
International Limited (OIL) has highlighted the contingent and
potential resources on the Thali licence and the associated
Expected Monetary Value (EMV) as follows:
-- Gross mean contingent resources of 18 MMbbls of oil across
the proven Njonji-1 and Njonji-2 fault blocks;
-- Gross mean prospective resources of 20 MMbbls of oil across
the Njonji South and Njonji South-West fault blocks;
-- Gross mean prospective resources of 111 MMbbls of oil across
four identified prospects located in the Dissoni South and Idenao
areas in the northern part of the Thali licence;
-- Calculated EMV10s of US$118 million for the contingent
resources, and US$82 million for the prospective resources,
respectively.
In accordance with the guidelines for the AIM market of the
London Stock Exchange, Dr Mark Enfield, BSc, PhD, FGS, Advisor to
the Board of Tower Resources plc, who has over 30 years' experience
in the oil & gas industry, is the qualified person that has
reviewed and approved the technical content of this
announcement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDUBVVRKSAWUAR
(END) Dow Jones Newswires
August 28, 2019 02:00 ET (06:00 GMT)
Grafico Azioni Tower Resources (LSE:TRP)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Tower Resources (LSE:TRP)
Storico
Da Mag 2023 a Mag 2024