LONDON – Tower Resources has applied for suspension of trading in its ordinary shares on the Alternative Investment Market, pending clarification of its financial circumstances.
The company has attempted to bring in a potential partner to co-finance work on its shallow-waterThali production-sharing contract offshore Cameroon. However, yesterday’s final deadline for signature of a heads of agreement that would have triggered a non-refundable deposit to Tower was missed.
Tower’s board will now consider alternatives for the company, which may include appointing administrators, as it does not believe the company can move forward with the work program at Thali without a partner.
The PSC, awarded in September 2015, covers a 119.2-sq km (46-sq mi) area in the Rio del Rey basin in the eastern part of the Niger Delta.
The Thali block is thought to potentially host up to four distinct play systems: these include an established play in which three discovery wells - two gas (Rumpi-1, Njonji-2) and one oil (Njonji-1) - have already been drilled on the block. There is also thought to be potential to develop prospects at deeper levels, in both structural and stratigraphic traps, once better imaging has been achieved.
Tower had hoped to start drilling in 2017/18.