Petroleum Africa
Find us on: 
Tuesday, March 8, 2016
2015 was a transitional year for Tower Resources. The company repositioned its portfolio to include a West Africa asset acquiring a 100% interest and operatorship in Cameroon’s Thali PSC. Tower has a 100% interest in Thali and has been accredited as an operator there. The Thali already has three discovery wells, and is therefore part-way to reaching a commercial reserve threshold.
The company, in a tough equity market, managed to raise funds for this acquisition as well as other activities. Tower was also able to attract a major new shareholder, M&G Investments, who has an 18% shareholding.
According to Tower management, the company moved to reduce and defer its other near-term commitments and associated costs, and by doing so minimized risk while retaining material exposure to longer-term exploration upside.
The company is now operator in Cameroon and Zambia, both with 100% interest and is looking to expand its holdings even in these trying times. While much of the industry is pretty much in a holding pattern due to low crude prices, Tower has not ruled out new acquisitions; applying for new acreage in Namibia and elsewhere as it continues to focus on western and southern Africa.
“We intend to keep near-term commitments and costs low, and to finance the higher cost activities through farm-outs to larger companies where and when appropriate. Our criteria for new activity and investment are strict: we need to envisage returns of many multiples of our investment within the medium-term, as we do with Thali. We believe that the current market, difficult as it is, presents outstanding opportunities to assemble an attractive portfolio cost-effectively, including through sector consolidation,” it said in a statement.
" alt="First LNG Realized at the Greater Tortue Ahmeyim Project">
" alt="United Energy Acquires Western Desert Producer APEX">
" alt="Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG">
" alt="ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System">
" alt="Tullow Highlights 2025 Operational Plans in Ghana">
" alt="TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years">
" alt="Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession">
" alt="Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market">
