Tower Resources Receives Invitation for Exploration License Extension and Deferral of Seismic Data Requirement in Namibia

Tower Resources, a UK-based oil and gas company, has received an invitation from the Namibian Ministry of Mines and Energy (MME) to apply for an extension of the initial exploration period for its PEL 96 license.

This license covers a significant offshore area in Namibia, specifically blocks 1910A, 1911, and 1912B, which span 23,297 square kilometers in the northern Walvis Basin and Dolphin Graben. The extension would push the exploration period to October 31, 2024, and the company is encouraged to request an additional extension of two to three years.

The MME has also deferred Tower Resources’ requirement to acquire 1,000 square kilometers of new 3D seismic data until the first renewal period.

The company’s remaining work commitments for the initial exploration phase, including oil seep satellite analysis, play fairway analysis, and updating their prospect and lead inventory, are largely complete. This deferral provides Tower Resources with additional time to enhance their exploration efforts without immediate pressure.

Jeremy Asher, Chairman and CEO of Tower Resources, highlighted that their understanding of the prospectivity of PEL 96 has significantly improved since the start of the current exploration phase in 2019.

The company plans to provide a more detailed report of its findings and share it with investors once they have acquired the new 3D seismic data. In the meantime, they are preparing a comprehensive summary of their progress to date.

The company is currently reprocessing previously acquired 2D seismic data over large portions of the license. This effort aims to identify the best areas for further 3D seismic data acquisition, which will help in making more informed decisions about future exploration.

Tower Resources is focused on optimizing the use of existing data to maximize the quality and quantity of information available for exploration.

Recent studies have identified several large stratigraphic traps and new structural features within the license area. A basin and thermal maturity study conducted in 2023 revealed mature source rocks capable of generating substantial amounts of oil, with well-defined migration paths.

Tower Resources believes that these findings, along with the extensive analysis of 2D seismic data, indicate significant potential within the license area, though acquiring 3D data on all identified prospects may not be feasible in the immediate future.