Tower Resources (AIM:TRP), the AIM-listed oil and gas explorer focused on Africa, has extended the initial exploration period for its Thali licence by a further year, to 2 October 2027.
The extension clears the way for formal approval and the completion of the previously announced farm-out of a 42.5% interest in Thali to Prime Global Energies.
Tower said the farm-out has already received approval from the President of the Republic of Cameroon, conveyed through the Prime Minister's office to the Société Nationale des Hydrocarbures and MINMIDT, though it could not be specific about timing for the remaining steps.
The NJOM-3 appraisal well, to be drilled on the Njonji structure within the Thali block, now carries a target spud date in the second quarter of 2027, with Tower moving to conclude a rig contract in parallel with farm-out completion.
The well is designed to test both the reservoirs already encountered by previous discovery wells on the structure and additional reservoirs indicated by 3D seismic data but not yet confirmed by drilling.
Should NJOM-3 confirm current expectations, Tower plans to suspend the well and return in 2028 to drill further production wells, bringing the Njonji discovery onstream through a mobile oil production unit.
This approval process has been running for some time: in June, management had expected both the Namibian and Cameroon approvals to resolve that same month, with the Cameroon file reaching the Office of the Presidency via a covering letter from the Prime Minister.
"We are very happy to share this long-awaited news with shareholders," said Jeremy Asher, Tower's chairman and chief executive, crediting the support of Cameroon's president and prime minister, the mining ministry, the national hydrocarbons company and the British High Commissioner in Cameroon.
"We are looking forward to completing the final stage of the initial exploration period work programme, together with our partner Prime once the farm-out is completed," Asher said.