Tower Resources plc has provided the following update with regards to its interests in the SW Orange Basin Technical Co-operation Permit (TCP) and the Algoa-Gamtoos Exploration Right (Algoa-Gamtoos ER) offshore South Africa.
Tower’s wholly-owned subsidiary, Rift Petroleum Ltd and its partner, New African Global Energy SA Ltd, have agreed not to proceed with an application to convert the TCP for this ultra deep-water frontier area into an exploration right. As such, New Age will reimburse Rift the sum of US$500 000.
Tower’s exit from this high cost ultra deep-water frontier basin is consistent with its move towards a more balanced portfolio of proven and emerging basins. This decision will enable the company to focus its efforts in South Africa on the Algoa-Gamtoos ER, which offers greater near-term potential.
As previously announced in September 2015, approval was received from the Petroleum Agency of South Africa to enter the First Renewal Period of the Algoa-Gamtoos ER and accordingly the 2016 work programme and budget has been approved between the joint-venture partners, Rift and New Age. The work programme will include further geophysical work and the interpretation of previously acquired 3D seismic data.
The Algoa-Gamtoos ER includes three basins and multiple plays. The 3D seismic, which was acquired in 2014 across the Algoa canyon has been supplemented by the reprocessing of an older 3D survey and the merged volume will now be interpreted with a view to defining drillable prospects for 2017/18. The licence also includes many leads defined on 2D seismic in the Gamtoos Basin, and the Joint Venture will be evaluating the potential to better define these with the acquisition of additional 2D or 3D seismic in 2017.
While Tower’s current work programme is focused on the shallow areas the licence also includes unexplored deep-water acreage within the Outeniqua Basin.
Graeme Thomson, Tower’s CEO, commented: “We are concentrating on the area in South Africa with the greatest near-term commercial potential, have enhanced our funding position and have also reduced our contingent commitments. The proceeds from this withdrawal mean that our South African work programme for 2016 is now self-funding.”
Edited from press release by Angharad Lock
Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/16022016/tower-resources-south-africa-update-2496/