Tower Resources subsidiary Tower Resources (Namibia) has signed a new petroleum agreement (PA) with the Government of the Republic of Namibia related to an 80% operated interest in three offshore blocks.
The three blocks, namely 1910A, 1911 and 1912B, cover 23,297km² and are located in the Walvis Basin and Dolphin Graben.
National Petroleum Corporation of Namibia (Namcor) and ZM Fourteen Investment CC each hold 10% stakes.
The agreement will comprise an initial four-year exploration period with a $5m work commitment, and could also be extended to five years in appropriate circumstances.
Following this, Tower and its partners will have options to enter a first and second renewal period of two years each.
Tower Resources chairman and CEO Jeremy Asher said: “We are very excited about our new petroleum agreement in Namibia. As a company, we know Namibia very well, and the wells drilled in the Walvis Basin during the past few years have provided a much greater level of understanding of the regional geology.
“As a result, Namibia and the Walvis Basin and Dolphin Graben, in particular, are now attracting great attention from well-respected explorers, both large and small, and are also once more attracting considerable farm-in interest and investment.”
During the initial exploration period, the work programme will consist of regional play fairway evaluation and acreage high-grading activities, including CRS mapping, sequence stratigraphy, sedimentology and basin modelling.
The programme will also include geochemical, gravity and magnetics analysis, 2D/3D seismic interpretation and mapping, and petrophysics and well failure analysis.
In the event that Tower Resources intends to enter the subsequent exploration periods, these would each comprise a single exploration well commitment and a minimum $20m financial commitment.