The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Our unrisked Njonji Phase 1 valuation is 0.57p/sh net to a 68% WI, which rises to 0.83p/sh based
on a 25mb development at the SP Angel LT $90/bbl Brent oil price forecast.
Just ph1 for njomi 0.83p !!
0.83p !!
Add in Cameroon other plays,Namibia and SA billion bbls potential
What price then !?
Mkt cap £2.4m
Strong buy
Seems i missed abit of scaremongering on Friday
Discussion around monies raised over the years and limited or no progress , I would agree with until last year progress was non apparent but last year was
we had updated Resources and NPV for Cameroon on the back of reprocessed 3D , increase in 2P and increase in NPV millions of $
the update we had ref Namibia , basin modelling results were highly exciting with clear understanding of the basin , migration pathways, DHIs,gas chimneys , oil seeps all highlighting hydrocarbon system in the basin
Although no value has been seen in the mkt valuation we await news to add significant value
Cameroon
Rig contract
Farmout x1
Farmout x 2
Resource potential of the deep reservoirs
Namibia
Updated volumetrics of structures and leads
Farmout
£2.5m mkt cap
I breve 2024to be the transformational year for TRP and could well be the multi bag share of the year
7 December 2023
Tower Resources plc
("Tower" or the "Company")
SP Angel Analyst Research Report
Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN), the AIM-listed oil and gas company focused on Africa, announces that its broker, SP Angel, has released a research report on the Company and its RIG READY status at the Njonji project. The report is available to view under the Research Reports tab on the Company's website at https://www.towerresources.co.uk/investor-relations/downloads/
STRONG BUY
Sorry to hear that lsetown,
Timing buying in these micro stocks is always difficult to predict the right time
historically there has only been Cameroon being advanced enough to bring forward but please refer to my previously posts investment case 1,2 & 3 why I think all three assets are being advanced so over the next 2 years we will see significant growth in the mkt cap
Cameroon multi well and into production , ramped up to 16kbopd
Namibia updated prospective resource potential will lead to farm out and 1 well commitment, larger structures over billion bbl plus potential , assuming we keep 25% net could be 250mmbbls net so buying in now for this event will re rate to price in the farm out and start to price in some of the size of the prize , as Cameroon $8 per bbl that would equate to $1000m mkt cap potential from today's £2.5m mkt cap, that's just one structure we have many offshore Namibia
Similar for SA - same as Namibia
So yiu can see the potential for the next 2 years from £2.5m mkt cap
Is truly staggering
Their initial valuation is ultra Conservative
15mmbbls x 68% interest x $8 per bbl x 40% risked
$32.64m / £26m
It's an appraisal well so 40% risked is very high, the drill has 90% COS
15mmbbls x 68% interest x $8 per bbl x 90%
$73.4m / £59m
£59m - 26m =
Difference from current £2.5m mkt cap is additional £33m ..
Mkt cap £2.5m
This is for just 15mmbbls , trp have billions bbls potential
Buy and put away for a few years ..
Once rig announced the others will follow quickly
Farmout 1 was pretty much done in Oct
Farmiut 2 a bit more work required
Licence pending rig contract
7mins 50 onwards
https://youtu.be/tCckFVp8dbI?si=b-3WF3sXu7GTgIe8
Total’s main discovery well was close to the edge of the structure, and the seismic quality wasn't great at the time
TRP have reprocessed with 3D and ifrntified further reservoirs so the Appraisal drilling is in the optimal location to appraise the initial discovery but will also test additional reservoirs which are visible on the 3D seismic, but werent present at the edge of the Njonji structure where NJOM-1 was drilled by TOTAL
After NJOM-3, the next well, in addition to being a production well, will also test some reservoir layers that are to connected to the original discovery wells, possibly containing a further 30 million bbls.
There are also other structures identified on the license which have not yet been drilled, so they are exploration opportunities, but could be quite substantial (over 100 million bbls) and once Njomi is in production then we will have a window when we can drill exploration wells in those other structures and recover costs from our Njonji production.
That video was released at 2pmish, we were already around. 031/.032p and wasn't known till towards 4pm so the rise want to do with the video
We have discussed the potential upside on this BB over the last few weeks and today's rise is nothing compared to where thesp will goon concrete news
TRP have great assets mutil billion bbl potential in Naimbia,SA & Cameroon
Immediate news is camerron, here the video from last month
https://youtu.be/tCckFVp8dbI?si=Tjn6Jt1RhhTPNocP
RNS due anyday
Rig contract
2x farm in
Which will be transformational for TRP
We were £2.5mmkt cap , potentially 3billion +bbls net across all assets
Cameroon -
Appraisal drill high COS, targeting 16,000 BOPD.
first production from Njonji estimated at just 6 months thereafter
phase 1 @ 8k bopd
8000bopd x 365 days x $90= $262.8million gross per annum
phase 2
production estimated to double to 16k bopd with the deeper sands
16000 x 365 days x $90
= $525.6 million gross per annum
TRP mkt cap just £3m
The sp potential hassomeway to go
June 2022
"The Company has also updated its estimate of the NPV10 of the base volumes in the 24.9 million barrel pMean recoverable case, to $305 million, as set out in the linked presentation at page 11."
April 2023
"Updated resource estimates and risks for the reservoirs connected to the NJOM-1 and the NJOM-2 discovery wells, substantially lowering risk attributed to PS9 Sup and PS3 HW reservoirs, and increasing total risked pMean prospective resources to 35.4 million bbls."
$305/24.9*35.4 =
$433.61m NPV10 (On a pro rata basis)
technical overview
https://www.youtube.com/watch?v=6ZJ7Nh1_oj8&t=4s
https://www.towerresources.co.uk/wp-content/uploads/2022/10/Duncan_Rushworth_Tower-Resources_Thali_AOW_2022-v3.pdf
Njomi 3 - 90% COS according to OIL report as below
https://www.towerresources.co.uk/wp-content/uploads/2020/03/Summary-Reserves-Resources-Valuation-Report-Tower-Resources-Cameroon-Assets-Effective-Date-10th-March-2020-Publication-date-12th-March-2020-Final.pdf
additional 111 million bbls of prospective resources identified in the OIL report may be found.
There are multiple free shots at different potential reservoirs which are not yet connected to the existing discovery
Then there are much deeper prospects which currently have no numbers on potential in the public domain but are turbidite and sandstone exploration plays are analogous to giant fields such as Alba and Zafiro which are on trend within the same basin
https://www.towerresources.co.uk/wp-content/uploads/2023/04/2023-04-24_CAM_Thali_TechnicalUpdate_Rev7b2.pdf
Ref rig contract
My Understanding was (weeks back) that there were/was 2options presumably 2 dates available hence no RNS confirming ...
Obviously only a matter of time till that's confirmed ,and as such....
weeks have passed since...
So.......
Anyday rodders anyday 🤑