Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
«Rig contract will unlock forward programme:
To-date, drilling of the NJOM-3 appraisal well has been held up due to a combination of rig unavailability, COVID restrictions and the lack of a comprehensive financing package. Nonetheless, Tower anticipates that with a resolution on contracting a rig slot almost in place for 2024, the Company will be able to secure the necessary additional funding estimated at $13.4m. With these milestones in place, management expects that the Cameroon authorities will approve an application for an extension to the initial exploration period on the Thali PSC to complete the well».«We initiate coverage with a Speculative Buy rating and a 0.12p/share 12-month target price, which is based solely on the Core NAV assets and already embeds a c.£3m equity raise at the current share price (0.028p/sh). In our view, the current share price implies only token option value is being attributed to the asset ahead of realising a funding partner to participate in the drilling of the NJOM-3 appraisal well, which is expected to confirm the commerciality of the oil resources. We think that signing a rig contract for the NJOM-3 well will prompt a farm-in partner to come into the well and complete the required financing.
Our target price provides roughly 300% of near-term potential upside for investors looking to speculate that with a rig contract place, the rest of the funding and licence requirements can be completed. Following a successful farm-out process leading to positive results from the NJOM-3 appraisal well, investors can then look to bridge across to the Risked NAV valuation that reflects a development asset moving towards first production and cash flow within 18M. 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.
Notwithstanding the potential for further share dilution or farm-downs to raise additional funds, investors could well look beyond our TP towards a higher risked valuation of the wider portfolio, subject to the timing and scope of the drilling programme. While investors should initially focus on the opportunity represented by an appraisal well on the Njonji discovery, they would be remiss not to also recognise the potential of the additional exploration opportunity in the rest of the Thali block, and Tower’s frontier acreage in Namibia and South Africa.»
Just a reminder that on news on finanse of NJOM3 well of $15million for say 50% of our Cameroon subsidiary implies the remaining 50% is worth also $15million BEFORE any drilling! That’s £11.8 million vs £3.1 million current market cap! Then if we drill and flow test this well successfully with bank finance to develop this asset the sky is the limit. Not to mention South Africa and Namibia….
GLA holders
N
6k
You cost me money! I bought just after :)
Kever
Im also surprised about the industry experience the newcomers seem not to be in possession of.
On the other hand I have come to the conclusion that more than anything GBP needs a big cash injection and this MIGHT just be what these newcomers with their finance background and networks can get sorted.
Best of luck to GBP holders
N
“Speculative” normally means the seismic company shoots the seismic at their own cost hoping to sell the data later on!
That’s my understanding anyway
Not sure there will be anyone left awake….:)
Hotel Chocolate being taken over by Marsbar company for a 170% premium over yesterdays share price!
That’s what I call a sweet deal!
Seems like we might have missed yet another rig slot as this wait is never ending and the share price is falling continuously. We need an update from Tower. Im wondering if this rig contract will never materialise and Jeremy is just clutching at straws?
N
The farmin ee will pay for the 3D….and a well
Nice try Harpy! Reps didn’t have any problems with any “Vulcanian” they splashed $70 million on the Welwitchia well. Unless you know better because you are an expert of course…?
Dicko80
Thank you for posting. Very useful as always.
Just to make it clear (if anyone was unsure): The 180-260 billion barrels are the volumes that seem to have been generated in the basin mature source rock below the catchment areas of our main prospects and these volumes are obviously ALOT higher that what we expect to find within our prospects. Nevertheless we do have some structures with a billion or so barrel potential and many more structures and stratigraphic traps just below a billion as I understand. Can’t wait for the volumetric report!!
The year before it was $231k. James that is quite normal.
Look at Eco Atlantic for example were Gil Holman and Colin Kinley was awarded fees of >$1 million each !! (so Jeremy is cheap!)
I continue to believe in Jeremy and that we will get the rig shortly. Nevertheless my patience won’t last forever that’s for sure.
…BORR Drilling of course
…normally come with fleet status report which might give us some clues on rig….
Gary what’s new is that covid is over and the oil price is $85/barrel! Also because of the AI driven Paradise software we have used last year we know better where to drill to maximise the oil pay (ie avoiding the gas filled part of reservoir as much as we can as there no oil will flow into our well bore).
Although I’d love this flyer to be an update it looks the same as the one I saved 7/11/21…I’ll have another look later today for any differences
EGTP the AIM inder is down a third over the last teo years. It has been very difficult for everyone.
You should blame the useless Tory party for this not Jeremy Asher
https://www.telegraph.co.uk/business/2023/10/31/ftse-100-markets-news-mortgages-latest/
Dicko80
Why do you think Tower will need to farm down to 25%?
N
Try this:
https://www.towerresources.co.uk/contact-us/
Jeremy is normally good at getting back