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Highlights
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Tower Resources PLC is nearing a funding deal to facilitate the drilling of the NJOM-3 well in Cameroon, with discussions ongoing with a substantial upstream partner.
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The company has received multiple proposals, with one expected to fully fund the drilling, while an extension of its PEL 96 license in Namibia allows for further evaluation.
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CEO Jeremy Asher expressed confidence in securing financing, with plans to commence drilling in early 2025.
Tower Resources Advances Towards Funding Deal for NJOM-3 Well
Tower Resources PLC {LSE:TRP} is entering a critical phase in securing funding for the anticipated drilling of the NJOM-3 well in Cameroon. In its interim results statement released today, the company announced that it is in discussions regarding a farm-out proposal with a substantial upstream company, which is expected to provide sufficient funds to proceed with the drilling.
The company indicated strong interest from multiple parties regarding the project. However, an alternative proposal was received that only offered partial funding for the NJOM-3 well. Tower highlighted that more drilling rigs are now available, and it intends to commence drilling in the new year, contingent upon finalizing the funding deal.
CEO Jeremy Asher stated, "We believe that we are now close to completing the financing for the NJOM-3 well in Cameroon, and remain on track to spud the well in early 2025." The successful completion of this project is anticipated to unlock significant potential, and the company is already planning the next phases for the asset.
Additionally, Tower is engaged in discussions with multiple banks to secure financing. One set of discussions is focused on long-term development financing for three additional wells in the Njonji structure, while the other is aimed at short-term financing to expedite the production process for NJOM-3.
Asher emphasized the importance of these financing options but noted, “While we are now very confident of achieving a positive funding result, there can be no guarantees until we have signed definitive agreements.”
In another development, Tower Resources announced an extension of the Initial Exploration Period of its PEL 96 license in Namibia until October 31, 2024. This extension provides additional time for evaluation and planning for the upcoming renewal period, which could span another 2-3 years.
From a financial perspective, the pre-revenue company reported a loss of $407,289 for the first half of 2024, reflecting its ongoing development efforts in its exploration portfolio.
