Africa-focused oil and gas firm Tower Resources has said that the documentation for its proposed farm-out of a share in the Thali offshore block in Cameroon has been finalized and submitted to the country's authorities for approval.
As reported in August, Tower Resources agreed to farm out a 49% non-operating working interest in its Thali Production Sharing Contract to Beluga Energy Limited.
The farm-out covers US$15 million towards the cost of the NJOM-3 well that Tower is planning to drill on the Thali block.
Completion of the farm-out is still subject to two conditions precedent: the financing contingency requiring Beluga's shareholders' approval, and the Minister of Mines, Industry and Technological Development ("MINMIDT") approval.
Jeremy Asher, Chairman and Chief Executive Officer, said: "We cannot be sure how long the MINMIDT approval may take as it can be as long as 60 days, but we hope it will come much sooner, allowing us to complete the farmout sooner. But in the meantime, we are moving forward with contract discussions regarding the rig and services, subject to the MINMIDT approval and conclusion of the farmout in due course."
Tower said in August it was in talks over a contract for a rig to drill the NJOM-3 well, and also regarding an option agreement over a Mobile Oil Production Unit ("MOPU") suitable for the Thali project.
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.
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