Tower Resources plc has announced that it has executed a contract with Borr Drilling Limited for the hire of the Norve jack-up rig, one of Borr’s fleet of high-specification drilling units, to drill the NJOM-3 well on Tower’s Thali license in Cameroon in 2024.
The company is also announcing its intention to raise gross proceeds of approximately £600 000 through subscriptions for approximately 3 000 000 000 ordinary shares of 0.001p each at a price of 0.02p per subscription share (the subscription price), representing a discount of approximately 13% to the closing bid price of the shares on 15 December 2023. It is intended that Jeremy Asher, Chairman & CEO, will subscribe for £80 000 of new ordinary shares as part of the subscription.
The rig contract
The rig is currently subject to existing contracts to deliver a series of wells, whose timing are naturally subject to operational uncertainty. Following the completion of those wells, the rig is expected to be available in Cameroon between April and August 2024. Subject to the rig being available during this time period, the company therefore anticipates that the NJOM-3 well will be spudded in Q2 or possibly Q3 of 2024. The expected date range for the rig’s availability will be narrowed as it draws nearer.
The contract is also subject to conditions precedent concerning the final documentation of the company’s Thali license extension, and prepayment of a portion of the expected rig hire. Other terms of the contract are confidential, but the company can confirm that the contracted day rate for the rig is in line with the company’s latest cost projections.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/18122023/tower-resources-executes-contract-with-borr-drilling-limited/