Tower Resources posts full-year profit

London-listed Tower Resources, an independent E&P company focused on African hydrocarbon prospects, produced a small post-tax profit of $47,300 in 2021, having sunk to a $1.4mn loss the previous year, it announced in its preliminary annual results on May 31.

Tower's gas prospects include a 50% non-operated stake offshore South Africa in the Algoa-Gamtoos licence area, operated by Rift Petroleum.

Gas has already been proven in a neighbouring licence operated by TotalEnergies.  TotalEnergies' Brulpadda exploration well encountered a 57-metre net gas and condensate pay in February 2019, and a 73-metre discovery was later identified at the Luiperd probe in October 2020.

NewAge has completed a reinterpretation of 4,500 line km of seismic data covering Algoa-Gamtoos. The study identified a "deeper-level slope play" which bears geological similarities to Brulpadda, along with three reservoir sections potentially containing 1.4bn barrels of oil equivalent, in terms of unrisked Pmean recoverable resources.

Tower also participates in projects in Cameroon, Namibia and the non-self-governing territory Saharwi Arab Democratic Republic (SADR).  Hague and London Oil operates the SADR concession, which spans the Guelta, Imlili and Bojador licence areas. Bojador crosses onshore SADR territory, while Guelta and Imlili are situated away from the coast.

Kosmos Energy's abandoned CB-1 exploration well lies some 50 to 60 km from the SADR acreage in neighbouring Morocco.  In late 2014, CB-1 encountered a non-commercial gas and condensate pay sized at around 14 metres.

In Cameroon, Tower invested around $1.3mn last year in exploratory work at the Thali production sharing contract.

Thali is situated in Cameroon's section of the Niger Delta basin. In 2018, an independent reserve report by Oilfield International estimated Thali's six key oil prospects could contain 149mn oil barrels in gross mean contingent resources.