Tower Resources PLC (AIM: TRP) is approaching the final stages of securing a crucial funding deal that will enable the drilling of the NJOM-3 well in Cameroon. In its interim results statement released today, the company announced that it has proposed a farm-out agreement with ‘a substantial upstream company’ and is currently in discussions with this prospective partner.
Tower Resources noted that their proposal is expected to provide enough funding to drill the NJOM-3 well. The project has attracted multiple parties, with one offering only partial funding.
With more drilling rigs now available, Tower aims to start drilling NJOM-3 early next year, pending the finalisation of the funding deal.”We are nearing the completion of our financing arrangements for the NJOM-3 well in Cameroon and are on schedule to begin drilling in early 2025,” said CEO Jeremy Asher.
The successful completion of the farm-out and drilling are anticipated to significantly advance the project, and plans for subsequent phases are already in progress.
“We are engaged in two concurrent negotiations with various banks: one concerning long-term financing for three additional wells on the Njonji structure, and another for short-term development to accelerate NJOM-3’s production while continuing with the next wells,” Asher explained.
The company is considering these financial options carefully, discussing them thoroughly with both banks and potential farm-out partners.
“We anticipate finalizing decisions on the short-term production strategy and associated financing in the next few months, ahead of drilling,” Asher stated.
Asher added, “We feel confident about securing the necessary funding, but nothing is confirmed until agreements are officially signed.”
Additionally, Tower has extended the Initial Exploration Period for its PEL 96 license in Namibia until October 31, 2024. This extension provides additional time for more thorough evaluation and planning for potentially two to three more years during the First Renewal Period.
Financially, the company, which has not yet generated revenue, reported a loss of $407,289 for the first half of 2024.
