Tower Resources Provides Update on Leaseholding of Its Units in Thali

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(Agence Ecofin) – Tower Resources informs the market that its leasing agreement with the Australian company OilLR is progressing normally. The deadlines for the payment of charges by OilLR have been set and Tower is continuing talks to attract other investors to the block.

In Cameroon, the British company Tower Resources said that the farm-out agreement signed three months ago between it and the Brisbane-based company, OilLR Pty, relating to the Thali block is nearing completion.

Although it arrives later than expected due to the coronavirus crisis, OilLR’s first payment will be made in late July or early August. The transaction completion date is scheduled for September 15. Both parties expect that all of the factors related to the closing of the transaction will be reviewed before this deadline.

As a reminder, OilLR must acquire 24.5% of interests in the production sharing contract of Thali, located in the Rio del Rey in Cameroon. Tower will thus control the remaining 75.5% of the shares and retain operator status. Under the agreement, the new Tower partner will invest $ 7.5 million in the drilling of the NJOM-3 well. OilLR will receive its shares subject to a preponderant royalty of 10% for Tower on the production share.

The cost of well drilling is currently estimated to be approximately $ 15-16 million, of which approximately $ 3 million has already been spent. If the drilling costs exceed $ 15 million, the surplus will be financed in proportion to the interests of each partner. The same will apply to all future costs.

In addition, Tower Resources has indicated that it is pursuing negotiations with other partners for future on-site leases.

Also read:

02/20/2020 – Cameroon: Tower Resources NJOM-3 well to be drilled in June

08/28/2019 – Cameroon: Tower Resources wants to change the platform for drilling the NJOM-3 well

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