Tower Resources, through its subsidiary Tower Resources (Namibia) Limited (TRNL), has acquired an additional 5% interest in the PEL 96 offshore license in Namibia.
The acquisition, valued at US$375,000, was made from its local partner, ZM Fourteen Investment (Pty) Ltd (ZM), as part of the company’s broader strategy to strengthen its position in the region.
The transaction involves TRNL purchasing half of ZM’s existing 10% stake in the license for a cash consideration upon completion. ZM will retain a 5% carried interest in the PEL 96 license, in line with the 10% carried interest held by the National Petroleum Corporation of Namibia (NAMCOR).
TRNL has already covered all of ZM’s expenses to date, eliminating any requirement for reimbursement of past costs.
Completion of the acquisition remains subject to standard conditions, including approvals from the Namibian government and consent from other partners in the license.
The process aligns with the terms set in TRNL’s farm-out agreement with Prime Global Energies Limited (Prime), signed in January 2025. Both transactions are expected to be finalized concurrently, pending regulatory approvals.
ZM has confirmed its consent to the TRNL-Prime farm-out agreement, which will provide Tower Resources with additional funds to support the acquisition. Once finalized, the ownership structure of the PEL 96 license will see TRNL holding a 60% interest, Prime 25%, NAMCOR 10%, and ZM 5%.
The next stage in the approval process involves submitting details of both the TRNL-Prime farm-out and the TRNL-ZM agreement to NAMCOR for consent.
Following NAMCOR’s approval, the documentation will be presented to the Ministry of Mines and Energy (MME) for ministerial clearance. The Ministry has been informed of the transactions and is awaiting formal submissions.
Tower Resources anticipates the completion of the TRNL-Prime farm-out by the end of March 2025, subject to regulatory approvals. Despite the multi-stakeholder approval process, the company remains confident in securing the necessary clearances within the expected timeframe.
Tower Resources Chairman and Chief Executive Officer Jeremy Asher welcomed the development, emphasizing the company’s commitment to its Namibian investments.
“We are pleased with the progress we are making and also with the acquisition of this small additional interest in the Namibian PEL96 from our local partner ZM. This acquisition reflects our wish for ZM to move to a more sustainable fully-carried position, and also reflects our faith in the value of the PEL96 license at the same time that we are bringing in a new partner to manage risk and share funding obligations,” Asher said.
He added that the company is already engaged in well planning for its Cameroon operations while remaining optimistic about the approval process in Namibia.
“We are already working hard on the well planning in Cameroon, as we are confident about the approval process, and want to ensure we are ready to drill the NJOM-3 well in good time. Forward planning usually improves both time and budget performance. I look forward to keeping you updated with our further progress,” he said.
