Tower Resources, the AIM-listed oil and gas company focused on Africa, has inched closer to the finish line of its farm-out deal for a license off the coast of Namibia.
Tower Resources has secured the final missing approval for the farm-out transaction with Prime Global Energies in Namibia. This pivotal moment comes thanks to the receipt of a formal letter of approval from the Namibian Ministry of Industries, Mines and Energy (MIME) for the PEL96 license offshore Namibia, which was originally announced in January 2025.
The approval signifies the culmination of the only remaining condition required under the PEL96 farm-out contract. Following this, Tower Resources is set to issue a notice of completion to Prime, along with a draft deed of assignment, novation, and amendment to MIME and its partners. This sequence of events indicates that completion is expected to follow suit shortly.
Jeremy Asher, Chairman & CEO of Tower Resources, expressed enthusiasm about receiving the long-awaited approval, stating, “We are very pleased to have received this letter of approval and would like to thank the relevant personnel at MIME, the Upstream Petroleum Unit, and NAMCOR for their diligent review and continued engagement throughout this process.”
Asher further emphasized the significance of collaborating with Prime, referring to them as a favorable partner for the PEL96 project: “We look forward to working alongside them and our other stakeholders to progress with the work program offshore Namibia.” The emphasis on collaboration suggests a promising future trajectory for the project.
However, it’s important to note that Tower is still awaiting approval for a key component of their operations—the proposed purchase by Tower Resources (Namibia) Limited (TRNL) of an additional 5% interest in the PEL96 license from local partner ZM Fourteen Investment (ZM), first discussed in March 2025. As negotiations continue, the companies are no longer bound to finalize the acquisition but remain in discussions regarding the execution’s details.
The backdrop of this upcoming collaboration unfolds in a region where multiple global companies are vying for hydrocarbon resources in Namibian waters. Notably, Shell’s recent oil discovery has fueled a growing interest in Namibia’s offshore potential, underscoring a dynamic and competitive environment in the oil and gas sector.
Power Your Brand With Offshore Energy ⤵️
Take the spotlight and anchor your brand in the heart of the offshore world!
Join us for a bigger impact and amplify your presence at the core hub of the offshore energy community!