Tower Resources has received formal approval from Namibia’s Ministry of Industries, Mines and Energy (MIME) for the farm-out of the offshore PEL96 license to Prime Global Energies Limited (Prime).
The approval clears the final outstanding condition under the farm-out agreement announced in January. Tower Resources will now issue a completion notice to Prime and submit a draft deed of assignment, novation, and amendment to MIME and its partners. The transaction is expected to be completed shortly.
The company is still waiting for approval for its wholly owned subsidiary, Tower Resources (Namibia) Limited (TRNL), to acquire an additional 5% interest in the PEL96 license from local partner ZM Fourteen Investment (Pty) Ltd. Although the delay means the parties are no longer required to complete the transaction, they remain in discussions about moving it forward.
Tower Resources Chairman and CEO Jeremy Asher welcomed the approval and thanked officials at MIME, the Upstream Petroleum Unit, and NAMCOR for their support and engagement throughout the review process. He also welcomed Prime as a new partner on PEL96, saying the company brings strong technical and financial capability as well as operational experience. He added that Tower Resources looks forward to working with Prime and its other partners to advance activities on the offshore license.
source: oilreviewafrica.com
African Energy Council