Tower Resources works to finalise PEL 96 farm-out deal

Tower Resources is working to complete outstanding documentation for the farm-out of a 25% stake in Namibia’s Petroleum Exploration Licence (PEL) 96 to Pakistan’s Prime Global Energies, after receiving revised drafts from the Ministry of Industries, Mines and Energy (MIME).

The company is finalising amendments to the PEL 96 petroleum agreement requested by the ministry. The changes include updated references to petroleum legislation and are being incorporated into the existing deed of assignment, novation and amendment.

The transaction was first announced in January 2025.

Tower Resources said it had received an amended draft from MIME, although “one minor error remains to be resolved”. The document has since been circulated to the PEL 96 partners for review and signature before being returned to the ministry for execution, the company announced on 2 November 2026.

The company believes the substantive amendments have been agreed, with the minister requesting finalised documentation. However, completion remains subject to the ministry’s procedures, including verification that the correct version of the deed has been signed by all relevant parties.

Tower had initially expected to complete the Namibian farm-out in October.

Asher in Windhoek

Tower Resources chairperson and chief executive Jeremy Asher said he was pleased with the progress towards completion. “I am currently in Windhoek, where our country representative and I have been reviewing the draft texts for the PEL 96 Deed with our partners, including NAMCOR, with whom we also held useful technical committee and operating committee meetings three weeks ago, and with the MIME staff,” he said.

Asher said he planned to remain in Namibia during the week to help ensure the minister received the final, reviewed and signed deed as soon as possible.

He added that the company was grateful to the minister for his commitment to finalising the documents and looked forward to completing the transaction and proceeding with its work programme.

Under the agreement, Prime Global Energies Limited, formerly Prime Pakistan Limited, will acquire a 25% non-operated interest in PEL 96 in exchange for an aggregate cash payment of US$2.5 million upon completion of the transaction.

The other partners are the National Petroleum Corporation of Namibia (NAMCOR), which holds a 10% carried interest, and local partner ZM Fourteen, with a 5% stake. Tower acquired half of ZM Fourteen’s previous interest last year for US$375 000 (about N$6.2 million).

Funding further exploration

The proceeds from the farm-out are not restricted to specific uses and will help fund Tower’s activities in Namibia and elsewhere.

In 2025, the company said the funds would support the evaluation of large stratigraphic and structural leads and prospects across the licence area.

At the time, Tower was planning to reprocess previously acquired 2D seismic data covering large parts of the licence to improve data quality and provide a more detailed picture of geological structures.

The results would help determine the final area for new 3D seismic data acquisition, the company said.

Tower’s 2025 work programme, which included the 2D seismic reprocessing, had an approved budget of approximately US$1.225 million, shared by the existing PEL 96 partners.

“This cost will now be shared with our new partners, subject to the relevant approvals and farm-out completion,” Tower said at the time.