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Analysis: Ukraine war rekindles Europe's demand for African oil and gas

22/7/22

Summary

Companies

Potential for African projects costing up to $100 bln
Namibia oil discoveries could generate 500,000 bpd
Oil majors' steps dovetail with push by European governments
Africa sees golden chance to tap assets amid energy transition

BRUSSELS/LONDON/CAPE TOWN, July 22 (Reuters) - Europe's thirst for oil and gas to replace sanctioned Russian supply is reviving interest in African energy projects that were shunned due to costs and climate change concerns, industry executives and African officials said.

Energy firms are considering projects worth a total of $100 billion on the continent, according to Reuters calculations based on public and private company estimates.

African countries that currently have little or no oil and gas output could see billions in energy investments in the coming years, including Namibia, South Africa, Uganda, Kenya, Mozambique and Tanzania.

Namibia alone could provide around half a million barrels per day in new oil production, following promising exploratory wells in recent months, according to unpublished estimates by two industry consultants.
..............

"In the wake of the success in drilling off Namibia comes the Ukraine and Russian war ... what we are seeing (is) that currently more companies are looking to invest in Namibia in the search for hydrocarbons," she said, adding the country hopes to begin production from the Shell project by 2026.

https://www.reuters.com/business/energy/ukraine-war-rekindles-europes-demand-african-oil-gas-2022-07-22/

Hopefully so, very strange to have a duplication , just a glitch in the system or did JA press the wrong button whilst compiling another???? ;-)))

Duplication of the RNS from 29th June !!! ???? ;-)

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.

The Company will update its CPR to SPE/PRMS standards in due course to reflect the updated estimate.

Presentation:

A copy of the investor presentation will be available this evening following the conference at

www.towerresources.co.uk and can also be accessed here: http://www.rns-pdf.londonstockexchange.com/rns/7147Q_1-2022-6-29.pdf

Jeremy Asher, Tower's Chairman and CEO, commented:

"We are delighted to announce this step forward in the financing of the NJOM-3 well, and also in our relationship with BGFI Bank Group. As we announced last month, the expected cost of the well has increased to approximately US$18 million, and so this facility and the US$4 million or so we have already invested, will still leave us with a balance - but a much smaller and more manageable balance - of the NJOM-3 well to finance. We are continuing to look at financing options at the asset level within TRCSA, including with Beluga Energy and its investors, though obviously for smaller amounts than discussed previously. We are also keeping an open mind on other financing alternatives, but whichever path we follow, as we explained in May, we expect the result to be considerably more favourable for shareholders than the farmout structure previously contemplated. We plan to conclude financing discussions in the third quarter of this year, as previously intimated, and then to press on with the well.

"As previously announced, long lead items for the well are already purchased, and the environmental and social impact assessment, site survey and site debris survey are already completed; and the initial exploration period of our Thali PSC has been extended expressly to accommodate this well.

"We are as excited as ever about the Thali PSC, as I plan to explain at the upcoming Proactive Investors conference in London this evening, 29 June 2022."

RNS Number : 7147Q

Tower Resources PLC

29 June 2022

29 June 2022

Tower Resources plc

Cameroon Financing and Resource Update

Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN), the AIM-listed oil and gas company with a focus on Africa, is pleased to provide an update on activity in respect of its Thali Production Sharing Contract (PSC), in the Rio Del Rey sedimentary basin offshore Cameroon.

Cameroon Financing:

Tower is pleased to announce that its subsidiary, Tower Resources Cameroon SA ("TRCSA"), has executed a term sheet with BGFI Bank Group ("BGFI"), the largest bank group in Central Africa, for a medium term loan of CAF 4.42 billion (equivalent to approximately US $7.1 million at the current exchange rate of 620 Central African Francs ("CAF") to the US dollar) as partial financing of the NJOM-3 well on the Thali block in Cameroon (the "Loan").

The Loan should cover around 40% of the roughly US$18 million cost of the well, with a further amount in excess of 25% already having been paid for by TRCSA, and the balance of 35% of the cost of the well also to be funded by TRCSA. The term of the loan is five years and it will be secured by a modest restricted cash balance (or bank guarantee) and a partial parent company guarantee, as well as a pledge of revenues from Njonji production in due course.

Interest on the Loan is to be 8% per annum, with a moratorium on interest payments during the first year of the facility, and commissions and fees for BGFI for arrangement, participation and acting as agent for the facility are as customary.

The term sheet is not yet binding, and the Loan will be subject to, inter alia, the execution of definitive documents and the availability of the remaining funding required for the NJOM-3 well.

Cameroon Resource Update:

The NJOM-3 well will appraise the reservoirs already discovered and connected to the NJOM-1 well, and will also test additional reservoirs which are visible on the 3D seismic data which we reprocessed in 2018 but which are not present at the edge of the Njonji structure where NJOM-1 was drilled.

The Company has prepared updated resource estimates for the reservoirs connected to the NJOM-1 discovery well, which are set out in detail in the linked presentation at page 8. These estimates are a little higher than the estimates contained in the OIL Reserve Report (24.9 million barrels pMean recoverable compared with 17.9 million barrels per OIL).

The main purpose of the updated resource estimate is not the slightly higher resource estimate per se, but the evaluation of additional potential reservoirs on a consistent basis in the Northern section of the Njonji structure, which have been identified on the reprocessed seismic and which were not evaluated in the OIL report. These could amount to up to 20 million bbls of further resource, with a pMean estimate of 10.8 million bbls, albeit subject to chances of success in the range 23-32%.

Tower's SA acerage lies adjacent to Totalenergies massive gas discoveries. Gla :-)

He said new discoveries of large gas fields known as Brulpadda and Luiperd off the south coast in offshore blocks 11B and 12B by TotalEnergies had already seen a $1bn investment.
These blocks have enough gas for more than 15 years — 560-million standard cubic feet per day or 3,000MW, said Sayidini.

He added that the blocks would create 42,500 job opportunities, 1,500 direct jobs and 5,000 indirect jobs, and it would add R22bn to annual GDP.

“While we [protest against] doing seismic activity, the rest of the continent is drilling and discovering billions of barrels of oil and gas — this while in SA we were engaging in the fracking conversations.

“We have had 12 or so [offshore] drilling sites. What affect have they made? Can anyone show any catastrophic issues or impacts? 

“No seismic activity has really caused issues, [there is] harmony between fisheries and oil and gas.”

https://www.bloomberg.com/news/articles/2022-07-15/oil-exploration-planned-for-areas-off-south-africa-s-west-coast

https://www.google.com/amp/s/www.sowetanlive.co.za/amp/news/south-africa/2022-07-17-show-me-proof-offshore-seismic-activity-is-bad/

Get UP there!!! Gla holders....game changing at anytime!!! :-)

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A nice 12m late reported buy, the cheap shares are being hoovered UP!!! Gla ;-)

The timing of the announcement for the bank loan towards funding for the NJOM-3 well, suggests JA is now in the driving seat and a very strong position in any negotiaions for the remainder of the required funds, c$6.3m .....Q3 is now upon us and so more great news could be very close. Gla holders.... Exciting times!!! ;-)

29/6/22

We are also keeping an open mind on other financing alternatives, but whichever path we follow, as we explained in May, we expect the result to be considerably more favourable for shareholders than the farmout structure previously contemplated. We plan to conclude financing discussions in the third quarter of this year, as previously intimated, and then to press on with the well.

Cameroon well plans win funding offer from Central African bank

Tower Resources close to finalising deal with BGFI Bank for Njom-3 appraisal-cum-exploration well

30 June 2022

A junior oil player in Cameroon has secured vital funding from the largest banking group in Central Africa to drill an appraisal-cum-exploration well that could prove up a 35 million-barrel discovery.

London-listed Tower Resources has been working hard on plans to drill a probe at the Njonji discovery on its Thali production sharing contract in the Rio Del Rey basin, but a proposed 2020 well was delayed by Covid-19.

However, Tower has now executed a term sheet with BGFI Bank for a medium-term loan of Central African Francs 4.42 billion ($7.1 million) as partial financing for its Njom-3 well.

This deal reflects the difficulty junior oil companies have to source finance from European lenders who are distancing themselves from fossil fuels, which has meant reverting to non-traditional lenders, including African banks.

The BGFI loan should cover around 40% of the well’s estimated cost of $18 million, with Tower providing the balance, some $4 million of which has already been committed.

Tower plans to conclude financing discussions in the third quarter of this year, and begin drilling shortly after.

Thali is located close to Perenco’s operated infrastructure in the basin which could provide an export outlet for Njonji’s oil if terms can be agreed.

Njom-3 will appraise the reservoirs already discovered and connected to the Njom-1 well and also test additional reservoirs identified from 3D seismic data.

The licence also hosts other prospects including Dissoni South and Idenao.

If an exploration well is drilled later this year and Njonji is commercial, Tower aims to deploy a mobile offshore production unit and wellhead platform to tap the field, bringing it on stream in 2024 at an estimated costs of about $45 million.

A presentation from Tower — which has a 100% stake in Thali — predicts that output could peak at 16,000 barrels per day.

https://www.upstreamonline.com/exploration/cameroon-well-plans-win-funding-offer-from-central-african-bank/2-1-1249223

Heading towards 0.4p plus in July. Gla :-)

https://www.**********.co.uk/articles/trader-s-cafe-with-zak-mir-bulletin-board-heroes-june-30-d20613f/

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So only another $6.3m required to fully fund the $18m cost of the well,from Beluga and its investors, or the other financing alternatives that JA has on his mind. Gla holders...Very Exciting times!!! ;-)

As we announced last month, the expected cost of the well has increased to approximately US$18 million, and so this facility and the US$4 million or so we have already invested, will still leave us with a balance - but a much smaller and more manageable balance - of the NJOM-3 well to finance. We are continuing to look at financing options at the asset level within TRCSA, including with Beluga Energy and its investors, though obviously for smaller amounts than discussed previously. We are also keeping an open mind on other financing alternatives, but whichever path we follow, as we explained in May, we expect the result to be considerably more favourable for shareholders than the farmout structure previously contemplated. We plan to conclude financing discussions in the third quarter of this year, as previously intimated, and then to press on with the well.

The Loan should cover around 40% of the roughly US$18 million cost of the well, with a further amount in excess of 25% already having been paid for by TRCSA, and the balance of 35% of the cost of the well also to be funded by TRCSA. The term of the loan is five years and it will be secured by a modest restricted cash balance (or bank guarantee) and a partial parent company guarantee, as well as a pledge of revenues from Njonji production in due course.

Cameroon, Thali License

Summary

• Developing the Njonji structure alone has solid economics

– $14 million cost to complete NJOM-3 and confirm reservoir performance

– $45 million or so to get Njonji into production with 6-10,000 bbls per day to begin

– Base case economics are already excellent, and could reach 16,000 bbls per day of
total initial production depending on what is found in deeper reservoirs

– Njonji can return capital and support exploration of the Northern fault blocks at little or no risk, even with poor reservoir performance and outcomes

• Northern fault blocks could contain over 100 million boe and can be explored
without risk once Njonji is in production

– Smaller levels of oil production from Northern fault blocks could also be handled
through an existing MOPU at Njonji

– Larger levels of production could be handled through an upgraded production unit or tied into Addax/Perenco network

– Can be explored at little or no risk using Njonji cost recovery pool

– Potential to add $100s of millions of NPV

https://www.rns-pdf.londonstockexchange.com/rns/7147Q_1-2022-6-29.pdf

Jeremy Asher, Tower's Chairman and CEO, commented:

"We are delighted to announce this step forward in the financing of the NJOM-3 well, and also in our relationship with BGFI Bank Group. As we announced last month, the expected cost of the well has increased to approximately US$18 million, and so this facility and the US$4 million or so we have already invested, will still leave us with a balance - but a much smaller and more manageable balance - of the NJOM-3 well to finance. We are continuing to look at financing options at the asset level within TRCSA, including with Beluga Energy and its investors, though obviously for smaller amounts than discussed previously. We are also keeping an open mind on other financing alternatives, but whichever path we follow, as we explained in May, we expect the result to be considerably more favourable for shareholders than the farmout structure previously contemplated. We plan to conclude financing discussions in the third quarter of this year, as previously intimated, and then to press on with the well.

"As previously announced, long lead items for the well are already purchased, and the environmental and social impact assessment, site survey and site debris survey are already completed; and the initial exploration period of our Thali PSC has been extended expressly to accommodate this well.

"We are as excited as ever about the Thali PSC, as I plan to explain at the upcoming Proactive Investors conference in London this evening, 29 June 2022."

https://www.lse.co.uk/rns/TRP/cameroon-financing-and-resource-update-ygiww0by07rz9lw.html

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

Elaine Maslin

Friday, June 17, 2022

https://www.google.com/amp/s/www.oedigital.com/amp/news/497431-deepwater-drilling-venus-puts-southern-africa-in-the-spotlight