Tower Resources Secures Farm-Out Agreements with Prime Global…

Tower Resources has entered into two farm-out agreements with Prime Global Energies, granting minority, non-operated interests in the Thali license and PEL96. The deals include a cash contribution of $15 million from Prime for the Thali work program, with significant financial benefits expected for Tower. Completion of these agreements is anticipated by the end of Q1 2025, pending regulatory approvals.

Tower Resources, a U.K.-based oil and gas company, has formalized two significant farm-out agreements with Prime Global Energies. These agreements grant Prime minority, non-operated interests in Tower’s Thali license located offshore Cameroon, and PEL96, offshore Namibia. Under these arrangements, Tower will transfer a 42.5% non-operated interest in the Thali license to Prime for a $15 million cash contribution designated for the Thali work program, particularly for the drilling of the NJOM-3 well, anticipated in 2025.

The farm-out agreements reflect Tower Resources’ strategic approach to maximize its exploration and production capabilities through partnerships. The Thali license and PEL96 are critical assets, and this development aims to enhance resource exploration and production while navigating regulatory approvals. The collaboration with Prime is poised to bolster financial liquidity, facilitating further operational execution and advancing overall stakeholder interests.

The recent agreements are a pivotal step for Tower Resources, enhancing its operational capabilities in Cameroon and Namibia. The forthcoming drilling of the NJOM-3 well marks a significant milestone, while partnerships like the one with Prime Global Energies are expected to foster growth and stability. Overall, these arrangements underscore Tower’s commitment to achieving strategic milestones and delivering stakeholder value.

Original Source: www.oedigital.com