The Cameroon oil sector reaches a pivotal milestone as Tower Resources, the British operator of the offshore Thali permit, secures presidential approval to transfer 42.5% of its stake to Prime Global Energies. The deal, pending final administrative clearance, includes a $15 million investment commitment from the new partner to fund the NJOM-3 appraisal well drilling program. At the European Central Bank’s September 28, 2026 reference rate, this translates to approximately 8.65 billion XAF.
Rather than a direct cash payment, the transaction follows a standard farm-out model where Prime Global Energies commits capital for a share of the technical program in exchange for its participation. The agreement designates Prime as a non-operator partner, leaving operational control firmly in the hands of Tower Resources Cameroon, the London-based group’s local subsidiary.
Administrative hurdles remain in Cameroon’s capital
Despite presidential authorization, the transaction is not yet finalized. Tower Resources’ half-year accounts, closed June 30 and released September 28, reveal receipt of a presidential letter addressed to the Prime Minister’s office, the Ministry of Mines, Industry and Technological Development (Minmidt), and the national hydrocarbons company (SNH). The Minmidt must now draft an extension order for the initial exploration period and issue formal approval for the stake transfer.
Until these fully executed documents are in place, the deal remains on hold. The completion timeline remains uncertain, the company acknowledges. This delay is significant: the exploration program has already fallen years behind schedule due to insufficient funds to proceed with drilling activities.
Prime Global Energies, a UK-registered upstream oil and gas specialist, brings proven sector experience despite its recent rebranding. Formerly Prime Pakistan Limited and previously operating as Eni Pakistan Limited, the company’s Italian Eni Group affiliation provides operational credibility that should reassure Cameroonian authorities regarding technical reliability.
NJOM-3 drilling pushed to Q2 2027
The Prime Global Energies partnership primarily aims to secure NJOM-3 financing, Thali’s next appraisal well. Tower Resources has adjusted its timeline: drilling is now expected to begin in early Q2 2027—starting April—rather than the previously targeted Q1. An earlier start remains possible, though management has chosen to cite the more conservative timeframe in its projections.
“We currently plan to commence drilling at the start of Q2 2027,” states Jeremy Asher, Tower Resources CEO. The drilling rig selection process remains unsettled, with the company still evaluating available market options. Tower has decided not to disclose further details until a firm contract is signed, though agreements with other essential service providers are already in place.
Logistical preparations in Douala are underway. Tower has already stored NJOM-3 equipment at the port city, including a well suspension system designed to temporarily cap the well after testing. If results prove positive, this system allows for potential reuse in future production phases.
Dwindling cash reserves make Prime’s investment critical
Prime Global Energies’ $15 million infusion may prove vital for Tower Resources’ survival. The company reports just $66,583 in cash at June 30, 2026, against $2.91 million in current liabilities. With no prior oil production or revenue generation, Tower faces a stark choice: complete the Cameroonian farm-out, pursue alternative asset transactions, or seek additional capital to meet existing obligations.
First-half spending totaled $453,000 in Cameroon—down from $982,000 in the same period last year. These expenditures cover NJOM-3 preparation, engineering studies, drilling planning, and Douala office operations. The $15 million pledge should cover the remaining appraisal drilling costs, though subsequent testing and potential commercial development would require additional funding rounds.
