Tower Resources plc says approval for the farm-out of a 25% interest in its offshore Namibian licence, Petroleum Exploration Licence 96 (PEL 96), is expected to be fast-tracked following engagements with government authorities.
The AIM-listed energy company said it recently met with Namibia’s newly formed Upstream Petroleum Unit, which reports directly to the President, together with representatives from the Ministry of Industries, Mines and Energy.
Following the meeting, Tower said it was informed that its request for approval of the farm-out to Prime Global Energies Limited would now be expedited.
The National Petroleum Corporation of Namibia (NAMCOR) has also completed its due diligence on Prime and is awaiting additional documentation related to Tower’s local partner before finalising its review.
Tower said the licence has already entered the First Renewal Period of PEL 96 and expects the remaining approvals to be processed within a reasonable timeframe, although it cautioned that it cannot yet confirm a specific timeline.
The company previously signed a farm-out agreement with Prime Global Energies for a 25% non-operated interest in PEL 96 valued at about N$83.1 million (US$4.375 million).
Under the agreement, Prime will make an initial payment of N$47.5 million (US$2.5 million) upon completion of the transaction.
Tower will also receive an immediate payment of about N$17.8 million (US$937,500), with a further N$65.3 million (US$3.437 million) payable once the transaction is finalised.
The deal remains subject to approval from the Namibian government and other partners in the licence, including NAMCOR and ZM Fourteen (Pty) Ltd.
Tower plans to reprocess existing 2D seismic data in the PEL 96 area before acquiring new 3D seismic data to guide future exploration.
PEL 96 is located offshore Namibia in the Orange Basin, where recent discoveries have increased interest in the region.
Tower Resources plc is an AIM-listed energy company focused on developing oil and gas opportunities across Africa.
