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(Alliance News) - Tower Resources PLC on Tuesday said it executed a binding heads of agreement to farm out a 49% stake in its Thali production sharing contract in Cameroon.
The farm-out to Beluga Energy Ltd covers USD15 million towards the expected USD16.8 million cost of the NJOM-3 well that Tower is planning to drill. The deal is subject to approval from Beluga shareholders and Cameroon's minister of mines, industry & technological development.
Tower and Beluga expected to complete the transaction by September 30, and Tower will remain operator of Thali.
"We are delighted to have the opportunity to work with Warebibo Soroh and his colleagues at Beluga, and to fulfil our shared ambition to move this project forward to oil production...The Njonji structure on which we are drilling the NJOM-3 well is one of several attractive structures on the Thali block, and we are looking forward to a great future developing these resources together," Tower Chief Executive Jeremy Asher said.
Shares were up 0.7% to 0.51 pence in London on Tuesday morning, having earlier jumped to as high as 0.68p each.
By Ivan Edwards; ivanedwards@alliancenews.com
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