(Alliance News) - Tower Resources PLC on Friday said its Thali project in Cameroon is still an "attractive asset" despite the falling oil price.
The company published a revised reserves report for the Thali asset. It posted 18 million barrels of oil across the Njonji-1 and Njonji-2 fault blocks, unchanged from the previous report.
"Gross mean prospective resources of 20 million barrels of oil of oil across the Njonji South and Njonji South-West fault blocks are also unchanged," Tower Resources said.
The net present value, with a 10% discount rate, of the best estimate of contingent resources is USD179 million, Tower Resources said. That figure however, is based on an oil price of USD68 a barrel.
Oil prices plunged on Monday after top exporter Saudi Arabia launched a price war in response to a failure by leading producers to strike a deal to support energy markets.
On Friday afternoon, Brent was quoted at about USD35. The North Sea benchmark's year-to-date high is about USD71.
Chair Jeremy Asher said: "So even in the lower oil price environment in which we now find ourselves, which echoes the price environment at the end of 2015 shortly after we first entered the Thali license, the Thali license is an attractive asset which we expect will earn excellent returns
Shares in the company were 1.6% higher at 0.32 pence each in London on Friday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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Tower Resources (TRP)