Tower Resources has closed its East Africa regional office in Uganda from where it has been coordinating activities on its licenses in South Africa, Zambia, Kenya and SADR (Western Sahara).
This follows new cost reduction measures being undertaken by the company that have also seen the relocation of Tower’s corporate office as the company tries to keep its near-term commitments are low, and aims to farm down its working interest holdings as appropriate to manage our risk-reward position.
Tower adds it is now refocused its portfolio and resources to areas predominantly on the Atlantic Margin where it is confident it can add value even in this difficult market.
“Accordingly, we have withdrawn from areas where we feel there is no medium-term likelihood of commercially worthwhile success. Our near-term commitments are low, and yet we have significant working interest holdings which we aim to farm down in due course as appropriate to manage our risk reward position,” says a joint statement by the Chairman and CEO.
Currently the company is focused on its Cameroon acreage it acquired earlier this month as well as in Namibia where it has made a number of applications in process as it seeks to build our acreage position in what remains a hugely underexplored but highly prospective area.
Early stage field work in Zambia Tower says has been encouraging, and it has now received approvals in South Africa to move into the next licence stage on Algoa-Gamtoos.
Earlier this year the company and its partners Premeir Oil and Taipan Resources in Kenya’s block 2B were unsuccessful in the drilling of the unsuccessful Badada-1 exploration well.
Following the unsuccessful drilling and Premier Oil plc exercised their right to exit the joint venture with effect from 30 April 2015. Accordingly, Lion and Tower announced working interests in the Block will be adjusted on a pro-rata basis (Lion 66.66%, Tower 33.34%) for the remaining approximately six months of the current licence phase after an extension by the Kenyan government ending in November 2015.