CAMEROON: Tower Resources Yet To Get Approval Following Thali PSC Farm-out

60 days since the Minister of Mines, Industry and Technological Development was formally requested for approval of a transaction of the type its farm-out to Beluga Energy Limited of a 49% non-operating working interest in its Thali Production Sharing Contract (PSC) in Cameroon there is yet to be any communication according to the company.

This is despite the Cameroon Petroleum Code providing that approval of a transaction of this type should be provided by the Minister within 60 days of 21^st September 2021, when it was formally requested, which means by Saturday 20^th November 2021.

Tower however notes that it is also yet to no objection to the transaction, nor any further request for information from MINMIDT and says it believes that the conditions for the approval have been met although it is yet to receive a formal letter (a decret) confirming MINMIDT’s approval of the transaction.

While the Company waits for a formal decret, Beluga continues to work on its financing process, and the Company continues to work with the intended rig provider and service companies on the schedule and terms for the NJOM-3 well.

The Thali PSC covers an area of 119.2 km², with water depths ranging from 8 to 48 metres, and lies in the prolific Rio del Rey basin, in the eastern part of the Niger Delta.

• Gross mean contingent resources of 18 MMbbls of oil across the proven Njonji-1 and Njonji-2 fault blocks;
• Gross mean prospective resources of 20 MMbbls of oil across the Njonji South and Njonji South-West fault blocks;
• Gross mean prospective resources of 111 MMbbls of oil across four identified prospects located in the Dissoni South and Idenao areas in the northern part of the Thali licence;
• Calculated EMV10s of US$118 million for the contingent resources, and US$82 million for the prospective resources, respectively.