Katherine Roe, CEO at Wentworth Resources talks through the Ruvuma gas development in Tanzania. Watch the full video here.
No doubt Tower will be running low on cash following the £1.5m fund raise in January, but if JA delivers good news on Cameroon then any subsequent placing thereafter will likely be at a premium and vey likely multiples of current sp.....Gla Holders....Q3 fast approaching!!! ;-)
Deepwater Drilling: Venus Puts Southern Africa in the Spotlight
Friday, June 17, 2022
Try the last update on Cameroon, in the meantime near term, I'm more interested in the SA Court ruling judgement on Shell and TotalEnergies seismic activity offshore SA...the greenlight will be a massive positive for Tower's SA offshore acreage which lies directly next to Totalenergies World class gas discoveries.....Big news coming soon!!! Gl :-)
No, they havea found oil yet, otherwise Tower's market cap would be several hundred million instead of £7m, but the the Njom prospect has a massive 80% industry COS as it lies within a proven producing oil basin, the Rio Del Rey. Gla :-)
This was Envoi's expectations when the price of oil wasn't much more than $40 a barrel.....it now sits at $120!!!! Gla :-)
Envoi oversaw the farm-out process for Tower. It said the planned well would flow test oil in the Pliocene sands.
A four-well development on the northern resources alone would be commercial, Envoi said. Production of 8,000 barrels per day would provide annual cash flows of more than $100mn.
There is also an undrilled deep exploration play on the Thali block. This is on trend with the Isongo fields to the southeast.
TRPABOUT a month after the Namibia International Energy Conference 2022 was concluded in Windhoek, the first step to creating an African energy bank has been inked.
The establishment of an energy bank received applause at the conference and now a memorandum of understanding between the African Export-Import Bank (Afreximbank) and the African Petroleum Producers Organisation (APPO) has been signed.
The multibillion-dollar energy bank, when established, would focus on scaling up private sector investment in African oil and gas projects, provide critical financing for new and existing oil and gas projects, as well as energy development across the entire value chain.
TRPBusiness in Cameroon) - On September 22, 2021, the African Export-Import Bank (Afreximbank) opened the doors of its new Yaounde office to the media as a prelude to the official inauguration coming up on September 24.
The office, which will serve the Central Africa region, is temporarily located at the headquarters of the national social security fund CNPS. "The new office covers Cameroon, the Central African Republic, Chad, Congo, the Democratic Republic of Congo, Equatorial Guinea, and Gabon. The creation of an Afreximbank regional office for Central Africa is in line with the Bank's growing geographical coverage. The new office brings to five the number of Afreximbank regional offices across Africa," the Bank indicates.
The headquarters agreement of this new office was signed in Yaounde, on December 13, 2019, by Lejeune Mbella, Cameroonian Minister of External Relations, and Okey Oramah, CEO of Afreximbank.
In the medium term, the Central Africa Regional Office is expected to strengthen the financial services sector by improving and expanding the region's access to affordable and competitive financing and advisory services for a range of local banks, exporters, importers, and domestic investors.
" Afreximbank intends to open over $500 million of consumer and refinancing lines to banks over the next five years. With the new office, we plan to quintuple the bank's interventions in the Central African sub-region to $5 billion [XAF2,799.8 billion] in the next three years. The bank will increase the number of institutions that will benefit from credit facilities in the region. Currently, four banks have benefited from our credit facilities. We plan to increase it to 15 banks in the next two years," said René Awambeng, head of client relations for Afreximbank.
Through its wholly-owned subsidiary, Rift Petroleum Limited, Tower Resources holds a 50% interest in the Algoa-Gamtoos licence, offshore South Africa. Tower acquired its non-operated interest in the Algoa-Gamtoos licence through the all share acquisition of Rift in April 2014.
The Algoa-Gamtoos licence covers 9,369 km² and is operated by New Age Energy Algoa (Pty) Ltd (“NewAge”) (50%). This acreage straddles the Algoa and Gamtoos basins on the shelf, and the outboard slope edge of the South Outeniqua Basin, where Total has made its Brulpadda and Luiperd discoveries in its Blocks 11B/12B, which are adjacent to Algoa-Gamtoos to the West.
Total’s Brulpadda and Luiperd discoveries should not be overlooked. IHS predicted that Luiperd would be developed in three phases. The first would involve just two or three wells and be tied back to the FA platform, carrying gas onshore to the Mossel Bay gas-to-liquid (GTL) plant.
Such an approach would “minimise risk and capex spend”, Katsimpardi said. The project would have a breakeven of less than $2 per 1,000 cubic feet.
By the mid-2030s, South Africa would be earning $700 million from this project, she said. “Development of the Brulpadda discovery would take this higher, although it would need more capex on additional gas infrastructure in the area.”
The opportunities of the finds are significant. For the companies involved, the producer countries and regions such as Europe hoping to secure new supplies.
However, there is always the risk of changing contract terms. “South Africa and Namibia are offering generous terms,” IHS research and analysis associate director Roderick Bruce said.
As countries start to see production, they are likely to change terms. “Some tighten too far, like Senegal and Tanzania, and as a result do not see much success in attracting new investments.”
Bruce called for countries to find a balance, to maximise revenues for governments and investors. While the countries of South Africa and Namibia may be appealing now, there is no certainty this will continue forever.
“Aboveground risks are never static,” Bruce said.
In February this year, TotalEnergies and Shell announced the Venus and Graff discoveries offshore Namibia.
There remains a “fair amount of uncertainty” over the Venus discovery, Katsimpardi said. Initial reports put the discovery size at 1.5bn barrels, but some reports have put this substantially higher, even as high as 10bn barrels. Appraisal this year should shed more light on the find.
IHS expects Total to develop the project with two FPSOs, saying the capital expenditure required would be “significant”. However, the internal rate of return (IRR) would be 30-35%, the analyst said.
Shell would likely develop its Graff find also with an FPSO. Katsimpardi put this project’s potential IRR at 37-40%.
Given the companies’ net zero plans, routine flaring would be impossible. Furthermore, “flared gas is throwing away value,” said Katsimpardi.
Similar to the Baleine discovery, initially the operators might reinject gas but ultimately it would be produced, potentially via a shared floating LNG (FLNG) unit or to onshore.
Success would be transformative for Namibia. “These two developments would have an expected peak production of more than 500,000 barrels per day,” she said. “Namibia could be in the top six or seven producers in Africa.” IHS shows the possibility for Namibia to overtake Angola after 2030.
The total capex on the two projects would be more than $30bn. By 2030, Namibia could be receiving $6bn from the two projects.
The operator NewAge continued to engage in farmout discussions supported by Envoi in 2021, and have some interested parties in discussion at the time of writing. Our own view is that the terms of a farmout have to be right for us to participate in it, as the cost of the 3D acquisition is not great (compared to a well, for example) and the timing is anyway still uncertain, but most importantly, we believe that the prospect itself has substantial value.
Big news on SA expected this week, the green light for Shell will be highly positive for any potential farmout for Tower's SA acerage. .....Gla Holders!!! ;-)
Shell is having its day in court in South Africa in the matter of its offshore seismic plans, while facing an onslaught of environmental protests.
Three judges in the High Court are hearing the case, in Gqeberha, previously known as Port Elizabeth. The case began today, on May 30, and will run until June 1.
A court halted Shell’s efforts to acquire seismic on December 28, 2021, until the full case was heard.
· 1 April 2022:
Issue of warrants in lieu of £30,000 (in aggregate) of Directors fees and a further £7,500 employment costs, to conserve the Company's working capital at a strike price of 0.2625 pence, and exercisable over five years;
· 9 May 2022:
The Company was notified by the Government of Cameroon of a further extension of the First Exploration Period of the Thali PSC to 11 May 2023. The Company also announced that it was negotiating an LOI with Shelf Drilling for Shelf's Trident VIII jack-up drilling rig to drill the NJOM-3 well on the Thali block in the fourth quarter of 2022.
RNS Number : 3148N
Tower Resources PLC
31 May 2022
31 May 2022
Tower Resources plc
Preliminary Results to 31 December 2021
Tower Resources plc (the "Company", the "Group" or "Tower" (TRP.L, TRP LN)), the AIM listed oil and gas company with its focus on Africa, announces its preliminary results for the 12 months ended 31 December 2021.
· Cameroon exploration and evaluation expenditure on the Thali PSC amounted to $1.3 million (2020: $2.2 million). Extension of the First Exploration Period of the PSC was granted to 11 May 2022 (and further extension to 11 May 2023 was subsequently agreed);
· In Cameroon, the Group also negotiated a farm-out agreement in respect of the Thali PSC, however the agreement has not to date been approved by the Government of Cameroon;
· In South Africa, operator NewAge completed interpretation of the reprocessing of 4,500 line kms of 2D seismic data on behalf of the joint venture. The data set incorporated both existing JV data and further data acquired from the Petroleum Agency of South Africa ("PASA") including lines from the Brulpadda discovery across the Outeniqua basin to the JV license area at Algoa-Gamtoos. The work identified a deeper-level slope play similar to that seen at Brulpadda, with three distinct reservoir sections containing unrisked Pmean recoverable resources of 1.4 billion barrels of oil equivalent;
· In Namibia the Group began basin modelling work as envisaged in the license work plan;
· The Group received a favourable ruling in the UK from the Upper Tribunal ("UTTC") supporting the previous (2019) favourable ruling from the First Tier Tax Tribunal ("FTT") in respect of the Group's UK VAT position;
· Administrative costs net of share-based payment charges of $762k (2020: $508k) include legal fees incurred totalling $263k (2020: $56k);
· Cash balance at year-end of $10k (2020: $10k).
Post-reporting period events:
· 14 January 2022
Placing for cash to raise £1.5 million (gross) via a subscription of 576,923,077 new ordinary shares of 0.001p each at a price of 0.26 pence per share;
· 7 February 2022
Announcements by the National Petroleum Corporation of Namibia ("Namcor"), and also operator Shell Namibia Upstream B.V. ("Shell"), and partner QatarEnergy, confirming that the Graff-1 well on PEL 39 has made a discovery in both its primary and secondary targets, and proved a working petroleum system for light oil in the Orange Basin, offshore Namibia. The Company provided an analysis of the implications of this successful well for the prospectivity of other operators' acreage in Namibia, including its own, and observed that Tower's net acreage position of 18,637 km2 is believed to be the third largest net acreage position in the Namibian offshore, after Exxon and Eco Atlantic Oil & Gas;
· 1 April 2022:
Issue of warrants in lieu of £30,000 (in aggregate) of Directors fees and a further £7,500 employment costs, to conserve
Oil industry gurus believe the promise of the Graff and Venus wells will likely trigger an increase in drilling activity in the Orange Basin as well as across the maritime boundary in South Africa where TotalEnergies and QatarEnergy have also secured exploration approval. According to Olayinka Arowolo, CEO of Nabirm, a Windhoek-based oil and gas explorer: “Namibia is gearing up to be the world's number one precinct for the discovery and supply of hydrocarbons. The Orange Basin is the focus for now but we are gearing up to make major investments in the Walvis ridge which we believe could hold up to eight billion barrels.”
Shell to kick-start second Namibia drilling campaign by end of 2022
An exploration and appraisal programme centred on Graff discovery to begin in third or fourth quarter
24 May 2022 1
Shell is set to return to Namibian waters later this year to drill further probes on and around its major Graff oil and gas discovery.
In February, the supermajor confirmed an Upstream report that it had hit oil with its Graff-1 probe in Block 2913A and immediately spudded a follow-up well called La Rona-1, eight kilometres from the original wildcat.
It has been widely assumed this second probe was an appraisal well, but there have been many suggestions it was an exploration well.
TotalEnergies' huge discovery pushes up bidding on Venus
The Orange Basin, home to two of the largest crude oil discoveries in Africa in recent decades, is currently the focus of intense competition that could lead to record-breaking deals.
Issue dated 24/05/2022