The Namibian Ministry of Mines and Energy (MME) has notified Tower Resources that it intends to extend the initial exploration period of the PEL 96 license until October 31, 2024. The UK firm, which holds an 80% operating interest in the license covering 23,297 km2 in the northern Walvis Basin and Dolphin Graben offshore Namibia, is invited to apply for a two- to three-year extension.
The MME will also defer the company’s commitment to acquire 1,000 km2 of new 3D seismic data to the first renewal period. As explained by the UK firm, the remaining work commitment for the initial exploration period, comprising the oil seep satellite analysis, play fairway analysis, development of an updated prospect and lead inventory, and the high-grading of acreage, is “substantially” complete.
Tower Resources Chairman and CEO, Jeremy Asher, said: “Our view of the prospectivity of PEL 96 has improved greatly since we began the current phase of work in 2019, and we look forward to having sufficient data quality to share a more detailed picture of the structures we wish to explore further with the 3D data acquisition, as soon as we have it. In the meantime, we plan to prepare a more detailed report summarizing our findings to date, the main conclusions of which we will share with investors in due course.”
The work on evaluating stratigraphic and structural leads and prospects is ongoing, with plans to reprocess the previously acquired 2D seismic data over large areas of the license in the remainder of the initial exploration period and the first renewal period. The idea is to select the optimal area for further 3D data acquisition.
In addition to the large anticlines and structural traps already identified, the company is optimistic about newly discovered stratigraphic traps. A 2023 basin and thermal maturity study revealed deep-lying source rocks within the PEL96 area of the Dolphin Graben. These rocks are estimated to have matured enough to generate over 100 to 150 billion barrels of oil, with well-defined migration paths for the oil also identified.
