Africa-focused oil firm Tower Resources has received an extension of the first exploration period at its Thali license offshore Cameroon.
It said Wednesday that the Government of the Republic of Cameroon had notified its subsidiary in Cameroon that the President of the Republic "has approved a further extension of the First Exploration Period of the PSC, and the Company is now awaiting a formal confirmation from the Minister of Mines, Industry and Technological Development of the details of the extension."
In March 2020, Tower Resources declared Force Majeure in respect of the First Exploration Period of the PSC, in light of the restrictions required to combat the Covid-19 pandemic, delaying the planned spud date of the NJOM-3 well in the license.
Tower is planning to drill the NJOM-3 well to test a discovery previously made by Total. The Thali PSC covers an area of 119.2 km², with water depths ranging from 8 to 48 meters, and lies in the prolific Rio del Rey Basin, in the eastern part of the Niger Delta.
"The logistics involved in coordinating personnel and equipment from multiple service providers and locations (as required for an appraisal well with extensive testing) remain challenging, but the company has a plan to complete drilling of the NJOM-3 well safely in the present circumstances," Tower Resources said Wednesday
"The Company intends to finalize a schedule with the multiple service companies involved, although this still depends on pandemic developments and the individual service companies' circumstances. But a formal extension of the First Exploration Period is an important element of finalizing a schedule as it reduces the uncertainty associated with relying on the current state of Force Majeure, as well as underscoring the support of the Republic of Cameroon for the Thali project," Tower Resources said.
Tower further said it would be reviewing the payment of director fees for the second quarter after the market close Wednesday, "as usual at the end of a calendar quarter, and will also be reviewing long term incentive (share option) awards for 2021 at the same time."
Jeremy Asher, Chairman and Chief Executive Officer, said:" We are grateful to the Republic of Cameroon for their continued support of the Thali project, and in particular to the President of the Republic, the Secretary-General of the Office of the Presidency, and the Prime Minister for taking a direct interest in our activity, as well as the Minister of Mines, Industry and Technological Development and his staff and all the staff at the Societé Nationale de Hydrocarbures who have supported us during this First Exploration Period.
"We are looking forward to seeing the NJOM-3 well drilled as soon as possible, and we will notify investors when we have more material developments."