OilLR Farms in to Tower Resources' Thali Block, Offshore Cameroon
AIM-listed African explorer Tower Resources Plc has executed binding heads of terms to farm out an interest in its Thali Production Sharing Contract (PSC) in the Rio del Rey Basin, offshore Cameroon, to privately held OilLR Pty Ltd.
Under the terms of the agreement, OilLR will fund US$7.5 million towards the cost of drilling the NJOM-3 well on the block in exchange for a 24.5% working interest in the PSC, subject to an overriding royalty of 10% for Tower on the contractor share of production under the PSC. The well cost is currently estimated at approximately US$15-16 million, of which approximately US$3 million has already been spent by Tower. Costs in excess of US$15 million, and future costs, will be funded pro-rata with respect to working interests.
OilLR is a privately held oil & gas company based in Brisbane, Australia, whose principal shareholders are Art Malone and Greg Lee. Mr. Malone (Managing Director) is a senior energy and resource executive with 15 years oil & gas experience, having recently served as COO of Doriemus Plc. Mr. Lee (Chairman) is a Senior Petroleum Engineer with over 30 years of experience including most recently as technical director at Doriemus, and previously as one of the founders of Grove Energy (UK) Ltd., and one of the founding principals of Regal Petroleum.
Tower also remains in discussions with several other parties regarding the farm out of up to a further 24.5% interest in the Thali PSC on similar terms.