Tower Resources plc, the UK-listed independent, holds an 80 per cent operated interest in Petroleum Exploration Licence (PEL) 96 offshore Namibia, covering Blocks 1910A, 1911, and 1912B in the northern Walvis Basin and Dolphin Graben.
The licence spans about 23,300 square kilometres.
Tower acquired its stake in November 2018 through a farm-in and assignment agreement with West Oil Namibia (Pty) Ltd, under which Tower Resources (Namibia) Ltd became the operator with an 80 per cent stake. West Oil Namibia and ZM Fourteen (Pty) Ltd each retained a 10% stake. The transfer and operatorship were approved by Namibia’s Ministry of Mines and Energy and reported in Tower’s London Stock Exchange disclosure.
Since then, Tower’s technical programme has focused on integrated basin modelling, seismic reprocessing and lead definition. In 2023, the company completed a basin and thermal maturity study that combined seismic, well, and stratigraphic data. The results confirmed an active petroleum system within the Dolphin Graben area of PEL 96, supported by evidence of oil-prone source rocks and shows in older regional wells.
Tower’s analysis identified multiple syn-rift source kitchens and possible migration routes feeding structural and stratigraphic leads, including the Alpha and Gamma prospects. These features are believed to have potential for significant oil accumulations.
Historical drilling in the wider Walvis Basin has demonstrated the presence of good-quality reservoirs and working source rocks. Nearby wells drilled by Norsk Hydro in the 1990s encountered oil in Albian carbonates and turbidite intervals. More recent wells, such as HRT’s Wingat-1 and Murombe-1, have confirmed the presence of hydrocarbons. Tower’s modelling work builds on these results to refine its own subsurface interpretation.
In August 2024, the Ministry of Mines and Energy extended Tower’s initial exploration period for PEL 96 to 31 October 2024 and invited the company to apply for the first renewal period of up to three years. The Ministry also agreed to defer Tower’s 3D seismic acquisition commitment of about 1,000 square kilometres into the renewal period, allowing more time to complete reprocessing and prospect mapping.
The company has since reprocessed legacy 2D seismic data to sharpen structural imaging and reduce uncertainty over key leads. Tower intends to acquire new 3D seismic once partners are in place and the renewal phase begins.
In January 2025, Tower signed a farm-out agreement with Prime Global Energies Ltd, a UK-based independent company, to transfer a 25% non-operated interest in PEL 96 for US$2.5 million in cash. The transaction, subject to government approval, will allow Tower to recover part of its historical costs and share future exploration expenditure.
Two months later, Tower reached a separate agreement to acquire an additional 5 per cent interest in the licence from its Namibian partner ZM Fourteen (Pty) Ltd for US$375,000. After the completion of both transactions, Tower’s compelling interest will be 60 per cent, with West Oil Namibia and ZM Fourteen each holding 10 per cent, and Prime Global Energies holding 25 per cent.
To fund interim technical work and the farm-out process, Tower arranged a £500,000 convertible bridge loan in April 2025. The proceeds are being used to support seismic interpretation, licence renewal documentation and partner engagement.
Chief Executive Officer Jeremy Asher described PEL 96 as a geologically rich but underexplored region. He said modern seismic methods and basin modelling have redefined the petroleum systems of the Walvis Basin since earlier exploration by Norsk Hydro and HRT. If new 3D data confirms structural closures within the Alpha and Gamma prospects, Tower expects to progress to drill-ready status during the renewal period.
Tower’s Namibia strategy emphasises staged risk management, including completing data integration and reprocessing, deferring costly acquisitions until after the farm-out, and aligning the exploration timetable with ministry guidance. The company has stated that drilling could occur once 3D seismic interpretation identifies a clear target and partner funding is in place.
The Walvis Basin, although overshadowed by the Orange Basin discoveries farther south, continues to draw renewed interest as explorers revisit older datasets with improved imaging and regional analogues. The Tower’s combination of basin modelling and updated seismic is designed to advance understanding of charge, migration and trap integrity in this northern sector.
Through the PEL 96 programme, Tower has secured a long-term position in Namibia’s offshore sector and remains one of the few independents operating in the Walvis Basin. With licence extensions, partial farm-out, and technical progress, the company has positioned itself for the next phase of exploration while limiting capital exposure.
