Tower Resources (TRP) released an independent reserves report, identifying gross mean prospective resources of 111 MMbbls of oil across four identified prospects in its Thali license in offshore Cameroon.
It has calculated an EMV10 of US$118 million for the contingent resources, and US$82 million for the prospective resources.
Shares in the company rose 17% to 1.675p a share following the announcement.
Jeremy Asher, Chairman and CEO, commented: "We are delighted to present our Reserve Report on the Thali licence in Cameroon, the first such report on this licence.”
“The 18 million barrels of Pmean Contingent Resources on the Njonji structure, which we expect the NJOM-3 well to transform into Reserves, are crucial and transformative for our Cameroon project. We are already planning for production from NJOM-3 as early as the end of 2019, with three further wells being designed to increase production and also access considerable further reserves.”
The Oil Reserves Report quantified contingent and prospective resources across multiple fault block prospects on the Thali licence, with gross mean contingent resources of 18 MMbbls of oil across the proven Njonji-1 and Njonji-2 fault blocks, and gross mean prospective resources of 20 MMbbls of oil across the Njonji South and Njonji South-West fault blocks.
The company is negotiating the final terms of a contract for a jack-up rig already proven in Cameroon waters, consistent with Tower’s existing drilling cost estimates.
It has also received a proposal for partnership on the Thali licence, including a possible project financing for the NJOM-3 well, which it is considering, as well as reserve-based financing options which could be established after a successful flow test.
The Thali PSC covers an area of 119.2 km², with water depths ranging from 8 to 48 metres, and lies in the prolific Rio del Rey basin which has, to date, produced over one billion barrels of oil and has estimated remaining reserves of 1.2 billion barrels of oil equivalent, primarily at depths of less than 2,000 metres.
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