11, October 2017
Following a Technical Committee Meeting and Operating Committee Meeting between Tower, the Cameroon Ministry of Mines, Industry & Technological Development (“MINMIDT”) and the Société Nationale des Hydrocarbures (“SNH”) held in Douala on 3 October 2017, Tower, MINMIDT and SNH have agreed on the following next steps in support of the PSC work commitments:
- To conduct reprocessing of the existing 3D seismic data and conduct specific specialist studies such as attribute analysis, including AVO and pore pressure prediction, and coherency cubes on that data;
- To continue with the geological and geophysical interpretations, using that reprocessed data, to refine and high-grade the prospect inventory on the Thali PSC block, to mature the drillable prospects;
- To investigate rig availability with appropriate technical specifications; and
- Based on this work, Tower aims to provide SNH with a prospect inventory and prioritisation during Q2 2018, and will agree with SNH a location for the first new well on the block.
The budget for the planned work activities for 2017 and 2018 has been agreed. Tower, SNH and MINMIDT have agreed to meet in six months to evaluate the progress of the operations. Based on this progress the parties may contemplate an eventual extension of the initial period of the Exploration Phase to allow the fulfilment of all contractual obligations for the period.
Jeremy Asher, Chairman & CEO, commented:
“We are very pleased to have confirmed our next steps on the Thali license, including the reprocessing of existing 3D data, with a view to finalising priorities for drilling in 2018. We are also grateful to SNH and MINMIDT for their flexibility and support. By deferring the acquisition of new 3D data in favour of reprocessing existing 3D data we can save time and money in the near term, and move faster towards sourcing a rig in the currently depressed rig market. This not only accelerates our progress towards a well, but also makes the cost of our work programme over the coming year much more affordable, even taking into consideration the last portion of the signature bonus which is now falling due. With contingent Oil-In-Place estimated at 39 million barrels (Pmean, gross) already discovered on the block, we are keen to take advantage of the low cost of rigs in the current market and to begin drilling to reach a commercial scale for development of this high-quality near-field block as soon as possible.”
Source: Oil and Gas News