Continental Focus, International Reach

Tower Resources Signs PA in Namibia

Thursday, November 8, 2018

Tower Resources signed a new PA with the government of Namibia covering an 80% interest in Blocks 1910A, 1911, and 1912B offshore the country. The agreement was also signed by Namcor and ZM Fourteen Investment CC, Tower’s partners.

The PA covers 23,297 sq km of the northern Walvis Basin and Dolphin Graben, encompassing Blocks 1910A, 1911, and 1912B. This is an under-explored region in which recent drilling results have proven the presence of a working oil-prone petroleum system and good quality turbidite and carbonate reservoirs. This is also an area that Tower knows well since Blocks 1910A and 1911 formed part of Tower’s original license PEL0010, which Tower and its partners, Repsol Exploration (Namibia) and Arcadia Expro Namibia, relinquished in 2015.


The PA is structured to comprise an Initial Exploration Period of four years (which may be extended to five in appropriate circumstances), followed by options for Tower and its partners to enter a First and Second Renewal Period of two years each. The work program for the Initial Exploration Period comprises regional play fairway evaluation and acreage high-grading activities including CRS mapping, sequence stratigraphy, sedimentology and basin modelling, geochemical, gravity and magnetics analysis, 2D and 3D seismic interpretation and mapping, and petrophysics and well failure analysis, based on a data base build comprised of the acquisition of 5,000 km of existing 2D seismic and relevant well data; analysis and, if necessary, reprocessing of existing 2D data; acquisition of at least 1,000 sq km of 3D seismic data; and the acquisition of oil seep satellite data and piston-coring reports.

The minimum exploration expenditure for the Initial Exploration Period is $5 million, which is to be supported by a bank guarantee of $0.5 million.

If Tower elects to enter the subsequent exploration periods, these would each comprise a single exploration well commitment and a minimum financial commitment of $20 million.