The Thali oil project has reached a pivotal moment in Cameroon, where Tower Resources, the British operator behind the offshore permit, has secured presidential approval to transfer 42.5% of its stake to Prime Global Energies. While the deal has been greenlit by the presidency, it remains in administrative limbo as key documents—including a formal decree extending the exploration period—are yet to be finalized by the Ministry of Mines, Industry and Technological Development (Minmidt) and the National Hydrocarbons Company (SNH).
Prime Global Energies’ commitment of $15 million (approximately 8.65 billion FCFA) will not be handed over directly to Tower Resources. Instead, it will be structured as an investment in the project’s technical program, a common farm-out arrangement where a partner funds operations in exchange for equity. Prime will join Thali as a non-operating stakeholder, with Tower Resources Cameroon remaining in charge of daily operations, including the highly anticipated NJOM-3 appraisal well.
The unsung role of Prime Global Energies behind the deal
Prime Global Energies, a UK-registered company specializing in upstream oil and gas, brings more than just capital to the table. Originally incorporated as Prime Pakistan Limited and formerly part of Eni Pakistan Limited, the firm’s operational experience—linked to the Italian energy giant—offers a level of technical credibility that had been missing in Cameroon’s Thali project. This background may prove crucial in reassuring local authorities of the new partner’s ability to deliver on its commitments.
The administrative hurdles, however, are far from over. Tower Resources has acknowledged receipt of a presidential letter addressed to the Prime Minister’s office, Minmidt, and SNH. Yet, the decree formalizing the permit transfer and extending the exploration timeline remains unsigned. Without these final touches, the deal remains on hold, delaying a project already mired in years of financial constraints and operational delays.
NJOM-3 drilling pushed to Q2 2027—but faster is possible
The NJOM-3 well, slated to be the next appraisal drilling target under the Thali permit, was initially planned for Q1 2027. However, Tower Resources has revised the schedule, now targeting a start date in April 2027, at the beginning of Q2. The company clarifies that an earlier start is theoretically possible, but prudence prevails in its public timeline. Contract negotiations for the drilling platform are still underway, and Tower has temporarily suspended updates on this front until a firm agreement is signed.
Meanwhile, logistical preparations are quietly advancing in Douala. The company has already stored key equipment at the port city, including a well suspension system designed to temporarily cap the well after testing. This infrastructure is essential: if NJOM-3 yields positive results, the well could be reactivated for production without needing to be redrilled.
Why Tower’s survival hinges on Prime’s $15 million lifeline
Prime Global Energies’ investment is more than strategic—it’s existential for Tower Resources. As of June 30, 2026, the group reported a cash balance of just $66,583 against current liabilities of $2.91 million. The company has never produced a barrel and remains revenue-free. Over the first half of the year, Cameroon-related expenditures totaled $453,000—covering NJOM-3 preparations, engineering studies, and operational overheads in Douala. These costs pale in comparison to the $982,000 spent during the same period in 2025, reflecting the financial squeeze the project has faced.
The $15 million from Prime is expected to cover the remaining costs for NJOM-3 drilling and appraisal. However, subsequent phases—including full-scale commercial development—will require additional funding rounds, leaving the project vulnerable to future cashflow challenges. For now, securing the farm-out deal is the only viable path forward for Tower to meet its immediate operational obligations and avoid further financial distress.
Inside the numbers
- Current cash reserves: $66,583
- Current liabilities: $2.91 million
- Prime’s investment commitment: $15 million (~8.65 billion FCFA)
- NJOM-3 drilling timeline: April 2027 (Q2)
- Administrative status: Pending final decree and permit extension
