(ShareCast News) – Tower Resources has signed a seven year offshore oil and gas exploration deal with the Cameroon government.
Tower Resources chief executive Graeme Thomson said the deal on the Thali exploration block “marks a shift in our risk profile from frontier to proven basins and introduces an asset with existing discoveries into the Tower portfolio”.
“The Thali Block provides Tower with lower risk exploration and appraisal potential in this shallow-water proven-producing region and provides a base from which the company can expand its portfolio in Cameroon.”
The deal, in which Tower has a 100% interest, is broken up into three parts. The first component is an initial exploration period of three years, consisting of geological and geophysical studies, 100 square kilometres of 3D seismic acquisition and a commitment well with a minimum spend of $13m.
Tower then has a two renewal periods of two years each for another exploration or appraisal well, and a minimum financial commitment of $13m per period. It can relinquish the contract at the end of each period provided that the minimum work commitment has been met.
