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Tower Resources plc (AIM:TRP), the AIM-listed oil and gas company with a focus on Africa, has announced significant developments regarding its PEL 96 license, located offshore Namibia.
Extension of Exploration Period
Tower Resources has received confirmation from the Namibian Ministry of Mines and Energy (MME) that the Initial Exploration Period for the PEL 96 license has been extended to 31 October 2024. Additionally, the MME has invited the Company to apply for the First Renewal Period of the license, which could last for 2-3 more years. The MME has also agreed to defer the Company’s commitment to acquire 1,000 km² of new 3D seismic data until the First Renewal Period.
Progress and Ongoing Work
The Company has substantially completed the remaining work commitments for the Initial Exploration Period. This includes:
- Oil seep satellite analysis
- Play fairway analysis
- Development of an updated prospect and lead inventory
- High-grading of acreage
Tower Resources is continuing its evaluation of large stratigraphic and structural leads and prospects. Plans include reprocessing the previously acquired 2D seismic data over large areas of the license. This effort aims to support the optimal selection of areas for future 3D seismic data acquisition.
Technical Insights and Developments
The evaluation has revealed numerous significant stratigraphic traps in addition to the previously identified structural traps. Basin modeling completed in 2023 indicated substantial oil generation potential within the PEL 96 portion of the Dolphin Graben. This modeling identified source rocks estimated to generate over 100 to 150 billion barrels of oil and well-defined migration paths. This information was shared with investors during the Technical Presentation at Africa Oil Week on October 11, 2023.
Since then, Tower Resources has analyzed over 20,000 line km of 2D seismic data across PEL 96. This extensive analysis has led to the identification of numerous large stratigraphic traps in five key areas of the license, favorably situated near the identified source rocks and migration paths.
Future Plans
Given the promising results and the variability in data quality, the PEL 96 Joint Venture plans to reprocess existing seismic data to enhance its quality. This reprocessing will help determine the best areas for acquiring new 3D seismic data. The Company has shared these plans with the MME during a recent Technical Advisory Committee meeting in Windhoek.
Outlook
Tower Resources and its partners, along with the MME, are optimistic about the results and look forward to providing more information as further work progresses.
