From SP Angel-New research30 Sep 2025 12:27
Company News Tower Resources* (TRP LN) 0.028p, Market Cap £8.2m: NJOM-3 well slips into 1Q26 • Tower announced interim results for the 6M ending June 30, reporting a £1.2m loss and $0.4m net cash as at the end of the period. • The Company confirmed receipt of a copy of the Prime Minister's instruction to the Minister of Mines, Industry and Technological Development (MINMIDT) to approve both a one-year Thali licence extension and also the farm-out. • However, with lead times of up to 3M for most of those major contract services associated with a rig to drill the NJOM3 well, this also reflects the minimum time between approvals and being able to commence drilling operations. • Accordingly, Tower now anticipates drilling to commence in 1Q26 rather than 4Q25, subject to official confirmation of an extension of the Thali licence initial exploration period and approval of the farm-out to Prime Global Energies. The shares are down in early trading as the schedule for Tower’s planned appraisal well in Cameroon unavoidably slips by a quarter into early 2026, so delaying a key catalyst for the stock by ~3M. The process of getting government approvals has taken longer than hoped for and this has somewhat delayed operational plans, but the approval time frames so far are not unusual and the Company believes these processes are still on track in both cases. Tower is in a strong position, subject to completing the two transformational farm-out agreements announced in January with Prime Global Energies for minority non-operated interests in the Thali and the PEL96 offshore licences. With Prime’s funding in place, the Company should be able to drill the offshore NJOM-3 appraisal well in 1Q26 at Njonji, which is expected to confirm the commerciality of the oil discovery and de-risk a future fast-track development. *SP Angel acts as Nominated Advisor and Corporate Broker to Tower Resources