Tower signs PSC for Cameroon block

LONDON, September 16, 2015 – UK oil and gas exploration company Tower Resources announced Tuesday that it had signed a production-sharing contract for a 100-percent interest in the shallow-water Thali block, located offshore Cameroon. Exploration is scheduled to take place in three stages.

The initial stage will consist of three years of exploratory operations, including 3D-seismic acquisition and the drilling of the first well. The financial commitment of the initial well is said to be a minimum $13 million. Initial 3D-seismic acquisition is slated to begin in the first half of 2016.

The second stage, lasting two years, will involve the drilling of an exploration or appraisal well with a minimum commitment of $15 million. In the third stage, also two years, another exploration or appraisal well will be drilled at an additional minimum commitment of $15 million.

“Our entry into Cameroon marks a shift in our risk profile from frontier to proven basins and introduces an asset with existing discoveries into the Tower portfolio. The Thali block provides Tower with lower risk exploration and appraisal potential in this shallow-water proven-producing region and provides a base from which the Company can expand its portfolio in Cameroon,” Graeme Thomson, CEO of Tower Resources said.

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