LONDON -- Tower Resources (TRP.L, TRP LN), has signed a production-sharing contract (PSC) for the shallow-water Thali (ex-Dissoni) concession in the Rio del Rey basin offshore Cameroon.
The company has a 100% interest in the 119.2-sq km (46-sq mi) PSC, which carries three exploration phases. Initial three-year period commitments comprise geological and geophysical studies, acquiring 100 sq km (38.6 sq mi) of 3D seismic, and drilling one well with a minimum financial commitment of $13 million. Water depths over the concession range from 8-48 m (26-157 ft).
To date, the Rio del Rey basin has produced more than 1 Bbbl of oil, Tower says, with remaining reserves of 1.2 Bboe thought to lie mainly in water depths below 2,000 m (6,561 ft).
The basin is also a sub-basin of the Niger Delta, where over 34.5 Bbbl has been discovered, of which 2.5 Bboe is attributed to the Cameroonian section.
Tower claims Thali could contain up to four distinct play systems, including the established play that has brought two gas discoveries (Rumpi-1 and Njonji-2) and one oil find (Njonji-1) on the block.
Although the oil discovered to date is viewed as sub-commercial discoveries, Tower sees potential to add incremental reserves by means of improved seismic imaging.
There are further prospects at deeper levels in structural and stratigraphic traps, and nearby infrastructure means that a 20-MMbbl oil field could be viable even at current oil prices, the company adds.
Tower plans to acquire 3D seismic during the first half of 2016, allowing it to update the existing 24 year old data to improve resolution of shallow plays and imaging of deeper sections. Drilling should follow during 2017/18.
The company also plans to seek a partner to share the costs of the campaign and provide added technical input.