Sahel Reporter

The Thali oil permit has reached a decisive turning point in Cameroon. Tower Resources, the British operator of the offshore license, has received approval from the presidency in Yaoundé to transfer a 42.5% stake to Prime Global Energies. The deal, which still requires administrative completion, includes a $15 million commitment from the incoming partner toward the work program, with the NJOM-3 appraisal well as the primary target. Converted at the European Central Bank’s reference rate of September 28, 2026, this amount equals roughly 8.65 billion CFA francs.

The transaction does not involve a direct cash payment to Tower. Instead, it is an investment commitment—a classic farm-out mechanism where a partner finances a portion of the technical program in exchange for an equity interest. Prime Global Energies will join Thali as a non-operating partner, while Tower Resources Cameroon, the London-based group’s local subsidiary, will continue to manage operations.

Yaoundé’s approval still pending final administrative steps

Despite the presidential authorization, the bureaucratic process is not yet complete. In its half-year accounts ending June 30 and published on September 28, Tower disclosed that it has seen a copy of the presidency’s letter addressed to the Prime Minister’s office, the Ministry of Mines, Industry and Technological Development (Minmidt), and the National Hydrocarbons Corporation (SNH). The Minmidt must still draft the decree extending the initial exploration period and send the formal approval letter for the transfer.

Until these duly executed documents are in the hands of all parties, the operation remains suspended. The company acknowledges that the finalization timeline is currently uncertain. This caution is significant: the exploration program is already several years behind schedule due to insufficient funds to launch drilling operations.

Prime Global Energies, registered in the United Kingdom and focused on upstream oil and gas, is no stranger to the sector. The company was known as Prime Pakistan Limited until December 2024, after previously operating as Eni Pakistan Limited. This lineage with the Italian group Eni gives it operational experience that could reassure Cameroonian authorities about the technical strength of the new partner.

NJOM-3 well pushed to second quarter 2027

Prime’s entry is mainly intended to secure financing for NJOM-3, the next appraisal well planned on Thali. Tower has revised its schedule: drilling is now expected to begin in early second quarter 2027, from April onward, compared to an earlier estimate of the first quarter. An earlier start is not entirely ruled out, but management prefers to use the more conservative window in its forecasts.

“We currently plan to commence drilling in early Q2 2027,” says Jeremy Asher, chairman and CEO of Tower Resources. The choice of drilling rig has not yet been contracted. The company continues to review available units on the market and has decided not to communicate further on this point until a firm contract is signed. Agreements with other necessary service providers are, however, already prepared.

Part of the logistics is already in place in Douala. Tower has stored there, along with other equipment for NJOM-3, a system to suspend the well after testing and later reuse it for production if test results prove successful.

Depleted cash reserves make the deal critical

Prime’s contribution is almost existential for Tower. The group states in its accounts that it must either finalize the Cameroonian farm-out, complete another transaction on its assets, or raise additional capital to meet its commitments. As of June 30, 2026, the company had only $66,583 in cash against $2.91 million in current liabilities. It has never produced a barrel and generates no revenue.

In the first half, $453,000 in expenses were capitalized in Cameroon, down from $982,000 a year earlier. These commitments cover NJOM-3 preparation, engineering studies, drilling planning, and the Douala office operations. The $15 million promised by Prime should cover the remaining amount needed for the appraisal well. Subsequent testing and any commercial development of the field will require further funding rounds.

By Paul Ndongo — Grand reporter politique