The Thali offshore license in Cameroon has reached a critical juncture, and the real story lies deeper than the headline approval. Tower Resources, the British operator, has secured a presidential green light to farm out 42.5% of its stake to Prime Global Energies. But behind that decision sits a stark reality: without this deal, the NJOM-3 appraisal well — the project’s centerpiece — has no clear path to financing. The arrangement commits Prime to a $15 million investment in the work program, equivalent to roughly 8.65 billion FCFA at the European Central Bank reference rate of September 28, 2026.
This is not a cash payout to Tower. It is a classic farm-out commitment, where a new partner funds a portion of the technical program in exchange for an equity share. Prime will join as a non-operating partner, leaving day-to-day management with Tower Resources Cameroon, the local subsidiary of the London-listed group.
Why the ink is not dry yet in Yaoundé
Presidential approval is one thing; administrative completion is another. In its half-year accounts to June 30, published September 28, Tower disclosed it had seen a copy of the presidency’s letter to the Prime Minister’s office, the Ministry of Mines, Industry and Technological Development (Minmidt), and the National Hydrocarbons Corporation (SNH). Minmidt must still draft the order extending the initial exploration period and issue the formal farm-out approval letter.
Until those executed documents reach the parties, the transaction remains frozen. Tower itself concedes the timeline is uncertain. That caution is telling: the exploration program is already years behind schedule, starved of the capital needed to drill.
Prime Global Energies, registered in the UK and focused on upstream oil and gas, is no stranger to the sector. Until December 2024 it operated as Prime Pakistan Limited, and before that as Eni Pakistan Limited. That lineage with Italy’s Eni gives it operational experience that may reassure Cameroonian authorities about the technical credibility of the incoming partner.
NJOM-3 slips to the second quarter of 2027
Prime’s entry is designed chiefly to lock in financing for NJOM-3, the next appraisal well on Thali. Tower has revised its schedule: drilling is now expected to start in early Q2 2027, from April onward, against a prior assumption of Q1. An earlier start is not ruled out, but management prefers the more conservative window in its guidance.
“We currently plan to commence drilling in early Q2 2027,” says Jeremy Asher, chairman and CEO of Tower Resources. The rig has not been contracted. The company continues to review available units on the market and has decided to stop commenting on the subject until a firm contract is signed. Agreements with other required service providers, however, are already in place.
Some logistics are already staged in Douala. Tower has stored there, alongside other NJOM-3 equipment, a system to suspend the well after testing and later reuse it for production if test results prove encouraging.
A cash position so thin it makes the deal existential
Prime’s contribution is close to existential for Tower. The group states in its accounts that it must either complete the Cameroonian farm-out, close another transaction on its assets, or raise additional capital to meet its obligations. At June 30, 2026, the company held just $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 of expenditure was capitalized in Cameroon, down from $982,000 a year earlier. Those commitments cover NJOM-3 preparation, engineering studies, drilling planning, and the Douala office. The $15 million pledged by Prime should cover the remaining balance needed for the appraisal well. Subsequent testing and any commercial development of the field will require fresh funding rounds.
Context around the region’s oil and gas moves
Nigerien oil: why Bamako and Ouagadougou struggle to benefit · BOAD releases 8 billion FCFA for Malian fuel · Cotco: Savannah seeks 228 billion FCFA from SNH and Chad
