On 2 March 2020, operator Tower Resources plc reported it has executed binding heads of terms for a farm-out to OilLR Pty Ltd (OilLR) of a 24.5% working interest in its 119 sq km Thali permit, located in the shallow water of the Rio del Rey area, eastern Niger Delta. However, Tower Resources is still in discussion with several other parties regarding this farm-out deal. The parties' intention is to complete the transaction by 15 April 2020, subject to usual confirmatory due diligence and OilLR having provided payments to Tower and into escrow of USD 7.5 million, and Tower having demonstrated that it has funding from its own or other sources for the balance of the USD 15 million that include the funds Tower has already spent on the planned appraisal Njonji 3. Also, the agreement will terminate automatically on 29 March 2020 if Tower has not received proof of funding from OilLR by that date.  As a reminder, Tower Resources hopes to spud the appraisal well Njonji 3 by mid-year 2020 and thus, has intensified the fundraising efforts for that drilling. Also, by mid-January 2020 the company obtained from the Cameroon Authorities an exceptional extension of the initial exploration period of the license, now valid until mid-September 2020.  Based on an independent reservesâ report from Oilfield International Ltd in late 2018, Tower Resources estimates the gross mean contingent resources of the Njonji structure at 18 MMbbl of oil, which could be transformed into recoverable reserves in case of a success at Njonji 3. Drilling costs are estimated by the company between USD 10 million (dry hole) to USD 14 million (including DST).  As of early 2020, the block contained five exploration wells including two discoveries: Rumpi 1 (oil and gas discovered by Pecten Cameroon in 1998), Njonji 1B (oil discovered by Total E&P Cameroon in 2008).
Tower (->76,5% op.) and OilLR Pty Ltd have reached heads of terms on the latter's possibly farming-into the Thali block (24.5%), 119 sq km in shallow waters. Discussions however continue with other possible suitors.