(Ecofin Agency) - Tower Resources an AIM-listed, London-based, independent oil and gas exploration company with a pan-African regional focus. has announced the signing of the shallow water Thali (formerly known as 'Dissoni') Production Sharing Contract ('PSC'), offshore Cameroon.

The PSC signing ceremony took place on the 15th of September 2015 at the offices of Société Nationale des Hydrocarbures ('SNH') in Yaoundé, Cameroon and was witnessed by the Minister of Mines, Industry and Technological Development, Mr Emmanuel Bonde, and the Executive General Manager of SNH, Mr Adolphe Moudiki.

Tower has a 100% interest in the Thali PSC, and the terms of the PSC include three exploration phases, including the minimum work commitment of the Initial Exploration Period as well as the option of relinquishing the PSC on completion of each Period on condition that the minimum work commitment has been met.

The PSC covers an area of 119.2 km², with water depths ranging from 8 to 48 metres, and lies in the prolific Rio del Rey basin, in the eastern part of the Niger Delta. The Rio del Rey basin has, to date, produced over one billion BO and has estimated remaining reserves of 1.2 billion boe, primarily within depths of less than 2,000 metres. The Rio del Rey is a sub-basin of the Niger Delta, an area in which over 34.5 billion BO has been discovered, with 2.5 billion boe attributed to the Cameroonian section. 

The company’s first priority will be the acquisition of 3D seismic in H1 of 2016. The seismic will be used to update the existing 24 year old data set to allow better resolution of shallow plays as well as imaging of deeper sections. Tower expects drilling to commence in 2017/18.

“We are delighted to be awarded the Thali PSC and look forward to working closely with SNH as we develop the prospectivity of this exciting acreage.  Our entry into Cameroon marks a shift in our risk profile from frontier to proven basins and introduces an asset with existing discoveries into the Tower portfolio.  The Thali Block provides Tower with lower risk exploration and appraisal potential in this shallow-water proven-producing region and provides a base from which the Company can expand its portfolio in Cameroon.' Graeme Thomson, Tower Resources’’ CEO, told Energy-pedia