22nd Nov 2021 12:04
(Alliance News) - Tower Resources PLC on Monday said it has yet to receive approval from the government of Cameroon regarding its farm-out to Beluga Energy of a 49% non-operating working interest in its Thali production sharing contract.
The farm-out to Beluga Energy Ltd covers USD15 million towards the expected USD16.8 million cost of the NJOM-3 well that Tower is planning to drill. Tower will remain operator of Thali.
The deal is subject to approval from Cameroon's minister of mines, industry & technological development, with Tower and Beluga originally expecting to complete the transaction by September 30. The deadline for a response from the minister was November 20, although to date, Tower says it has received no objection or acceptance of the transaction.
The company added that it believes the "conditions for the approval have been met".
Shares in Tower were 13% lower at 0.38 pence in London on Monday after the announcement.
"While the company waits for a formal decret, Beluga continues to work on its financing process, and the company continues to work with the intended rig provider and service companies on the schedule and terms for the NJOM-3 well," Tower said.
By Will Paige; [email protected]
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