Posting its 2019 full-year results, the company noted that Brent crude is now trading at around US$40 per barrel, longer-term pricing (the December 2025 future) is pitched above US$52 per barrel, and there is potential for a tightening of supply in the coming years due to industry-wide cuts in capital investment.
Even if prices slide back to US$45 per barrel the company believes its projects are attractive.
The attractiveness of Tower’s projects is reinforced by its February farm-out deal to OilLR, it added, and it expects that transaction will now complete in the near future.
Highlighting continuing third-party industry activity in the results statement, Tower chief executive Jeremy Asher said: “The fact that Exxon, Total, and independents like Africa Energy and their partners are pressing ahead with further exploration wells in South Africa and Namibia reinforces the attractive economics of these wells, even at current oil prices and despite their geological risks.”
He added: “We do not yet know if the rest of 2020 will see us continuing to wrestle with the frustrations of the pandemic, or sprinting towards our goals as things return to normal, or somewhere in between.”
“I do believe that our assets are as attractive as they have always been; our plans are further advanced than they were a year ago; and our determination to achieve our goals is undiminished. We hope to have more concrete news for shareholders over the coming weeks and months," he added.
In terms of financial results, for the twelve months ended December 31, 2019, the pre-revenue explorer reported a US$2.66mln loss including US$2.24mln of administration costs.
It ended December with around US$39,000, and funding activities have since occurred with £500,000 raised in March.
In January, the company secured an extension for the Thali licence and in February a well site survey was completed for the proposed NJOM-3 programme.
March saw an updated reserves report was released, and, amid the coronavirus (COVID-19) pandemic an event of Force Majeure was confirmed which impacted timings for the NJOM campaign.