- Tower Resources plc has entered into a contract with Borr Drilling Limited for the use of the Norve jack-up rig.
- The rig, part of Borr’s high-specification drilling units, will be used to drill the NJOM-3 well on Tower’s Thali license in Cameroon in 2024.
- Tower Resources plans to raise approximately £600 000 through the sale of around 3 billion ordinary shares, at a price of 0.02p per subscription share, a discount of roughly 13% to the closing bid price as of December 15, 2023.
- Jeremy Asher, Chairman & CEO of Tower Resources, intends to purchase £80 000 of the new ordinary shares.
The contract for the rig rental is subject to several conditions precedent, including the final documentation of the company’s Thali license extension and prepayment of a portion of the anticipated rig hire. Other terms of the contract are confidential, but the company has confirmed that the contracted day rate falls within the company’s most recent cost estimates.
Currently, the rig is under several existing contracts to deliver a series of wells. However, uncertainty surrounds the timing of these operations. After the completion of these wells, the rig is expected to be available in Cameroon between April and August 2024. Therefore, Tower anticipates that the NJOM-3 well could be spudded in either the second or third quarter of 2024, depending on the availability of the rig during this time frame.
More precise dates for the rig’s availability will be determined as the time frame draws closer. This agreement strengthens the ongoing relationship between Tower Resources and Borr Drilling Limited, as both companies continue to explore new opportunities in the oil and gas sector.