Tower Resources has agreed to farm-out a 44% working interest in its Namibia offshore licence 0010 and the related petroleum agreement along with the operatorship of the block to Repsol.
The UK independent has stated that subsidiary Neptune Petroleum has also entered into a farmout with Arcadia Expro Namibia to convert Tower’s 15% carried interest in the license to a 30% working interest, subject to the requisite regulatory approvals.
Under the terms of the farm-out agreement, Neptune is liable to reimburse to Arcadia 30% of its past costs of about $5.3million and will assume 30% of future costs.
Provided that the transfers are completed, the ongoing interests in licence 0010 and its blocks 1910A, 1911, and 2011A will be Repsol 44%, Tower 30% and Arcadia 26%.