LONDON (ShareCast) - (Sharecast News) - Africa-focussed oil and gas company Tower Resources updated the market on its Algoa-Gamtoos licence in South Africa, in which it holds a 50% interest through its wholly-owned subsidiary Rift Petroleum, together with the operator New Age Energy Algoa, on Friday.
The AIM-traded firm said New Age had appointed ENVOI to conduct a farm-out process on behalf of both New Age and Rift, to seek a partner for a material share of the licence working interest, in return for funding a further 3D seismic survey over a portion of the licence area.

It said the new 3D seismic survey would focus on the Gamtoos basin or the South Outeniqua basin, the latter being part of the slope margin play being targeted by Total, Exxon and Equinor in adjacent acreage.

Any prospects identified and high-graded during the processing and interpretation of the new 3D dataset could ultimately lead to a well being drilled in the third renewal period, currently due to end in December 2023, Tower explained.

In December last year Rift, together with the operator, entered the first two-year renewal period, having integrated the results from the reprocessed existing 2D seismic dataset together with the 2D and 3D seismic survey acquired as part of the initial exploration period.

The operator's work during the initial exploration period and the current renewal period had led to the generation of an enlarged inventory of prospects, and led across the three basinal plays identified on the Algoa-Gamtoos block, it said.

"We are delighted with the encouraging work that the operator has performed on the Algoa-Gamtoos License and the appointment of ENVOI to manage the farm-out process," said Tower chairman and chief executive officer Jeremy Asher.

"We look forward to seeing further 3D data which should enable us to identify, with our partners, the best locations for drilling.

"We believe that each of the three plays on the Algoa-Gamtoos license is interesting and any one, or all three of them, can justify further exploration and we look forward to providing further updates as the farm-out process progresses."

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