The Namibian government has approved Prime Global Energies’ entry into Tower Resources’ offshore Petroleum Exploration Licence 96 (PEL 96), allowing the AIM-listed explorer to complete a farm-out agreement that has been awaiting regulatory clearance since early last year.
Tower Resources announced that the Ministry of Industries, Mines and Energy has formally approved the transfer of an interest in PEL 96 to Prime Global Energies, satisfying the final outstanding condition precedent under the farm-out agreement signed in January 2025.
The approval enables the company to begin the legal completion process, including issuing a notice of completion to Prime and circulating the deed of assignment, novation and amendment to the ministry and its licence partners. Completion of the transaction is now expected shortly.
The decision brings a new financial and technical partner into one of Namibia’s offshore exploration licences at a time when international interest in the Orange Basin continues to intensify following several major oil discoveries made over the past four years.
For Tower, the deal strengthens its ability to finance future exploration while reducing the costs and risks associated with offshore drilling. Prime Global Energies is expected to contribute substantial technical expertise and financial capacity to the licence as exploration activities progress.
Tower Resources chairman and chief executive Jeremy Asher welcomed the government’s decision, thanking officials from the Ministry of Industries, Mines and Energy, the Upstream Petroleum Unit and NAMCOR for completing the review process.
“We are very pleased to have received this letter of approval, and would like to thank the relevant personnel at MIME, the Upstream Petroleum Unit and NAMCOR for their diligent review and continued engagement throughout this process,” he said.
Asher said Prime would significantly strengthen the licence partnership.
“We would also like to welcome Prime, who we view as a highly favourable partner for PEL96, with substantial technical and financial resources and a track record of operational success. We look forward to working alongside them and our other stakeholders to progress with the work programme offshore Namibia.”
Tower is, however, still awaiting regulatory approval for a separate agreement announced in March 2025 under which its Namibian subsidiary would acquire an additional 5% participating interest in PEL 96 from local partner ZM Fourteen Investment (Pty) Ltd.
The delay means neither party is now contractually obliged to complete that acquisition, although Tower said discussions are continuing with a view to concluding the transaction.
The approval of the Prime farm-out marks an important milestone for PEL 96 by formally reshaping the licence’s ownership structure and bringing in a new strategic partner as offshore exploration activity gathers pace in Namibia’s increasingly competitive petroleum sector.
