RE: Try buying LOL Something big coming we know it due in multiples29 Nov 2024 12:40
The updated proposal the Company has received is more detailed and would now provide in excess of US$15 million of funding for the Thali PSC work programme, including drilling the NJOM-3 well (which is already partly funded), in return for a minority interest in the PSC, and with Tower remaining as the Operator. It also provides for future production-based payments to the Company, a portion of which are committed to Pegasus Petroleum Limited ("Pegasus", wholly owned by a trust of which the Company's CEO and Chairman is a lifetime beneficiary) pursuant to agreements made in 2019 arising from the working capital facility that Pegasus had provided to the Company at that time and as announced on 4 March 2021 (the "Production Payment Agreements").
The proposal has normal conditions precedent, including the Cameroon Government's approval for the farm-out and drilling schedule, and the proposal would also require amending the Production Payment Agreements, which the Company believes can be agreed. Importantly, the proposal does not contain any financing contingency as the counterparty has available funds, and a portion of the funding would be secured by a bank guarantee.
The Company is presently reviewing the current proposal and clarifying its terms where appropriate, and expects to work on detailed contracts with this partner, or one of the other parties, over the coming weeks. The Company does not intend to comment further on these negotiations until a final agreement is reached.
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