Project Profile
Location: Rio Del Rey basin, Niger Delta oil sub-basin, Cameroon
Reserves: 20 million barrels
Contingent resources: 39 million barrels (gross)
Area: 119 sq km
The block is located in shallow waters and comprises oil and gas discoveries, in addition to a number of identified exploration opportunities. An exploration program is planned for the next three years and includes the acquisition of 3-D seismic data in 2016 and exploration well drilling commitments in 2017 and 2018. The seismic will be used to update the existing 24 year old data set and allow better resolution of shallow plays alongside imaging of deeper sections.
Tower Resources will invest about US$5.4 million in the exploration works and has, in this way, proceeded to raise US$8 million through the equity offering of 2.904 billion ordinary shares at a price of 0.19 pence, which trade started on 20th July, 2015. The Rio del Rey basin has, to date, produced over one billion barrels and has remaining reserves estimated at 1,200 million boe, primarily from shallow producing sands at depths of less than 2,000 metres. Rio Del Rey is a sub-basin of the prolific Niger Delta, an area in which over 34.5 billion barrels of oil has been discovered, with 2.5 billion boe attributed to the Cameroon section.
The Thali Block has the potential for up to four distinct play systems, including the 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. These are currently viewed as sub-commercial, but with better quality seismic Tower sees potential to add incremental oil reserves to achieve commerciality. There is also significant potential to develop prospects at deeper levels, in both structural and stratigraphic traps, once better imaging has been achieved. The existence of infrastructure in adjacent blocks means that the development of a 20 million barrel field has the potential to be economically viable at current oil prices. There are 7 million barrels already discovered on the Block.
Operators:
Tower Resources Plc: Operator with 100% interest
Cameroonian Ministry of Mines, Industry and Technological Development
Societe Nationale des Hydrocarbures (SNH)
Contracts:
DMT Petrologic: Reprocessing of 3D seismic data