Tower Resources plc has entered into a US$4.375 million farm-out agreement with Prime Global Energies Limited for a 25% non-operated stake in its PEL96 license offshore Namibia.
Under the agreement, Prime will make an initial cash payment of US$2.5 million upon completion, with Tower receiving an additional US$937,500 immediately and US$3.437 million upon finalizing the transaction.
The deal is contingent on approval from the Namibian government and other PEL96 stakeholders, including the National Petroleum Corporation of Namibia (NAMCOR) and ZM Fourteen (Pty) Ltd.
“We have worked hard over the years to understand the significant potential of the PEL96 license, and I’m pleased that its value has been recognized through this agreement,” said Tower Resources Chairman and CEO Jeremy Asher.
The transaction will enable Tower to continue evaluating the PEL96 area, which includes significant stratigraphic and structural leads. Tower plans to reprocess existing 2D seismic data for better quality and detail, followed by the acquisition of new 3D seismic data to guide exploration.
Tower’s approved 2025 budget for this work is US$1.225 million, which will now be shared with the new partner, subject to regulatory approval.
In addition to the Namibia agreement, Tower, through its subsidiary Tower Resources Cameroon S.A. (TRCSA), has also signed a US$15 million farm-out deal with Prime for a 42.5% non-operated stake in its Thali license in Cameroon.
Completion of both agreements is expected by the end of the first quarter of 2025, pending approvals from relevant government bodies and regulatory authorities.
“These deals underscore the value of our licenses and provide critical funding to advance our activities in Namibia, Cameroon, and beyond,” added Asher.
Tower Resources plc is a London AIM-listed oil and gas company focused on Africa.
