(Alliance News) - Tower Resources PLC said Friday it has been engaged in "detailed discussions" over a loan facility for the the Njonji development at its Thali production-sharing contract in Cameroon.
Tower Resources noted the discussions have involved talk of a USD10 million facility going to the operator for the NJOM-3 well - which is currently in progress- and, subject to the results of that NJOM-3 well, the facility might then be expanded to support the next three production wells and platform planned for Njonji.
"The proposed facility would be secured by the proceeds from the PSC," Tower Resources said.
The operator at Njonji is the company's wholly-owned subsidiary Tower Resources Cameroon SA.
Tower Resources noted it has previously agreed with OilLR Pty Ltd for OilLR to farm in to the PSC to provide up to USD7.5 million for the NJOM-3 well.
"OilLR has not yet made the payment into escrow contemplated by that agreement, which means that the company has the option either to reduce OilLR's investment to USD5 million or to terminate the agreement," Tower Resources said.
The firm continued: "The company also remains in discussions with another potential farm-in partner."
Tower Resources said it is considering its options, with the planned completion date for the well still set at September 15.
Shares in Tower Resources were down 7.2% in London on Friday afternoon at 0.36 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Tower Resources (TRP)