The Africa focused AIM-listed oil and gas company provided an update today following a technical committee meeting and operating committee meeting with the Cameroon Ministry of Mines, Industry & Technological Development (“MINMIDT”) and the Société Nationale des Hydrocarbures (“SNH”).
The meeting was held in Douala. Tower now plans to reprocess the existing 3D seismic data and conduct specific specialist studies. The firm will also continue with the geological and geophysical interpretations, using that reprocessed data, to refine and high-grade the prospect inventory on the Thali PSC block, to mature the drillable prospects. Rig availability is also to be investigated. The budget for the planned work activities for 2017 and 2018 has been agreed.
Tower, SNH and MINMIDT have agreed to meet in six months to evaluate the progress of the operations. Based on this progress the parties may contemplate an eventual extension of the initial period of the exploration phase to allow the fulfilment of all contractual obligations for the period.
Jeremy Asher, chairman and chief executive, said: “We are very pleased to have confirmed our next steps on the Thali license, including the reprocessing of existing 3D data, with a view to finalising priorities for drilling in 2018.
“We are also grateful to SNH and MINMIDT for their flexibility and support. By deferring the acquisition of new 3D data in favour of reprocessing existing 3D data we can save time and money in the near term, and move faster towards sourcing a rig in the currently depressed rig market.
“This not only accelerates our progress towards a well, but also makes the cost of our work programme over the coming year much more affordable, even taking into consideration the last portion of the signature bonus which is now falling due.
“With contingent Oil-In-Place estimated at 39 million barrels (Pmean, gross) already discovered on the block, we are keen to take advantage of the low cost of rigs in the current market and to begin drilling to reach a commercial scale for development of this high-quality near-field block as soon as possible.”
Source: Energy Voice