Tower Resources readies loan for Cameroon project

Tower Resources has executed a term sheet with Gabon’s BGFIBank Group for a USD 7.1-million loan to partially finance an exploration well on the Thali block in Cameroon, the IOC announced on Wednesday.

The advance will cover 40% of the USD 18 million required for drilling the NJOM-3 well. Tower Resources has already paid for 25% of the operation and plans to fund the remaining costs.

The 5-year loan is subject to 8% interest per year, with a hold on payments in the first year of the planned facility.

The term sheet is not yet binding and is subject to definitive documentation and show of the remaining funding for the project.

The planned NJOM-3 well will test additional resources on the Thali block, which is currently expected to hold 17.9 million barrels of oil. The new asset will tie back to the NJOM-1 discovery well.

The company estimates that the discovery could raise reserves on the play by up to 20 million barrels of oil.

The shallow-water Thali PSC covers an area of 119 square kilometres and sits in water depths between 8-48 metres. The block is located in the Rio Del Rey basin in the eastern half of the Niger Delta.