Tower Resources Issues Letter of Award for Rig Contract in Cameroon
Tower Resources plc (AIM: TRP), the AIM-listed oil and gas company focused on Africa, has announced that its subsidiary, Tower Resources Cameroon SA (TRCSA), has issued a Letter of Award to Advanced Energy Systems S.A.E (ADES), an affiliate of ADES Holding, for the provision of a jack-up drilling rig. The rig, expected to be the Admarine 510, will be used to drill the NJOM-3 well on the Thali license in Cameroon during Q4 2025.
The Admarine 510 is a GustoMSC CJ-46-X100-D triangular-design, three-legged jack-up rig, built in 2019 and rated for operations in water depths up to 375 feet. It is currently completing its five-year recertification in Bahrain.
ADES has also secured a contract with Addax Petroleum for operations in Cameroon beginning in late 2025. Under the proposed schedule, the Admarine 510 will first drill the NJOM-3 well for Tower before commencing work with Addax.
While commercial terms remain confidential, Tower notes that the rig’s planned deployment to Cameroon for other operators contributed to more favourable terms than those previously available. The deal aligns with the company’s prior cost estimates and is considered highly competitive compared to other rig proposals received in 2023 and early 2024.
The Letter of Award remains subject to final contract and customary conditions precedent, including government approvals in Cameroon and the completion of TRCSA’s farm-out agreement with Prime Global Energies Limited, announced on 10 January 2025.
Tower Resources Chairman & CEO, Jeremy Asher, commented:
“We are delighted to make this award, and are looking forward to working with ADES on the NJOM-3 well this year. Our rig selection process has been made a little more complex by the opportunity to coordinate our timing with that of other nearby oil and gas companies, including Addax Petroleum in particular, however I believe it has resulted in a very good commercial outcome for all parties.”
