SMALL CAP IDEA: Tower Resources eyes approval for Cameroonian oil well
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Tower Resources, a small-cap explorer listed on London’s AIM, is now breathing rarified air thanks to a deal announced in early January. The farm-out deal was long in the waiting, as the company had been trying for a deal for several years, against a market backdrop that was far more challenging than when the process began.
In truth, many investors bar the most patient and faithful had likely written off the explorer’s chances of getting a deal done. Tower will receive $4.38 million in cash from new partner Prime Global Energies, a UK company with substantial producing assets in Pakistan, which is also committed to around $15 million of investment in Tower’s flagship assets, once the transaction is completed.
With a deal now in place and an injection of funds on the way, Tower and its team led by chairman and CEO Jeremy Asher is starting 2025 with two things going for it that most other small-cap oil and gas firms do not – an active, fully-funded well happening this year, and sufficient capital that it can focus on its assets without issuing new shares.
Tower boss Asher is confident that the explorer will achieve its plan, to drill the NJOM-3 well, on the Njonji discovery, in Cameroon, on target later this year. Success with the well will kick off a field development project, ultimately delivering cashflows and revenue, but as Asher explains, a few regulatory boxes need to be ticked before a rig contract can be signed, and a timeline is finalised.
