Prime Global Energies Limited has agreed to acquire 25% out of Tower Resources’ 80% in PEL96, offshore Namibia, for US$2.5 million aggregate cash at completion.
The farm-in agreement will be subject to Namibian government approvals and the consent of the other partners, Namcor and ZM Fourteen (Pty) Ltd.
The deal is expected to be completed by the end of Q1 2025.
Tower Resources wants to use the funds for its various activities in Namibia and elsewhere, including evaluating the significant stratigraphic and structural leads and prospects across the license area.
The company plans to reprocess the previously acquired 2D seismic data over large areas of the license to achieve better data quality and a more detailed picture of the structures it wishes to explore further with new 3D seismic data acquisition.
This reprocessing work will guide the final choice of the 3D seismic data acquisition area.
Tower Resources’ budget for the 2025 work programme, including this 2D reprocessing work, is about US$1,225,000, which the existing PEL96 partners have approved.
This cost will now be shared with Prime Global Energies Limited, subject to the relevant approvals and farm-out completion.
As part of a separate letter agreement, Tower has committed to offering Prime Global Energies Limited the opportunity to participate in other future Tower projects in Cameroon, with Prime Global Energies Limited participating up to 42.5%, depending on the project.
Prime Global Energies Limited is a UK-incorporated company with over three decades of upstream operational experience.
In 2022, Prime Global Energies Limited’s parent company, Prime International Oil and Gas Company Limited, acquired the assets of ENI in Pakistan and is a substantial upstream company with significant technical resources and production from both operated and non-operated production in Pakistan.
Tower Resources CEO Jeremy Asher says Prime Global Energies Limited has substantial technical and financial resources and a track record of operational success.
Tower Resources acquired 80% operating interest in Blocks 1910A, 1911, and 1912B (PEL 96) in November 2018 with an initial exploration period of four years.
The initial exploration period was subsequently extended to October 31, 2024, by agreement with the mines ministry.
The ministry also invited Tower Resources to apply for entry into the first renewal period for up to 3 years on August 2, 2024.
The blocks cover 23,297 km² of the northern Walvis Basin and Dolphin Graben, an under-explored region in which recent drilling results have proven the presence of a working oil-prone petroleum system, along with good-quality turbidite and carbonate reservoirs.
Recent licensing activity in the area has included the farm-in of Chevron to the PEL 82 license to the south.
