Cameroon’s Thali oil permit has reached a defining moment with the presidential green light for a transformative 42.5% stake transfer to Prime Global Energies. Tower Resources, the UK-based offshore operator, confirmed receiving approval from the Presidency of Cameroon to finalize this critical agreement. The deal, still pending administrative completion, unlocks a $15 million investment commitment to advance the NJOM-3 appraisal drilling program, marking a pivotal shift in the country’s oil exploration strategy.
Unlike a direct cash injection, this agreement follows the farm-out model, where Prime Global Energies will fund a share of the technical program in exchange for its stake. While Prime joins Thali as a non-operating partner, operational control remains firmly with Tower Resources Cameroon, the London-based firm’s local subsidiary. This strategic move aims to inject much-needed capital while preserving Tower’s leadership in executing the project.
Administrative maze still blocks Thali’s final approval
Despite presidential authorization, Yaoundé’s bureaucratic wheels are still turning. In its half-year financial report published on September 28, Tower Resources revealed it had received a presidential letter addressed to the Prime Minister’s office, the Ministry of Mines, Industry, and Technological Development (Minmidt), and the National Hydrocarbons Corporation (SNH). The next critical step involves Minmidt drafting an extension order for the initial exploration period and issuing the formal approval letter for the stake transfer. Until these documents are finalized, the transaction remains in limbo, with the timeline shrouded in uncertainty.
This delay is more than procedural—it exposes the fragile state of Thali’s exploration program, which has faced repeated setbacks due to chronic funding shortages. Prime Global Energies, transitioning from Prime Pakistan Limited (formerly Eni Pakistan Limited), brings operational expertise and financial backing, offering a lifeline to Cameroon’s struggling oil ambitions.
The Njom-3 drilling push: Prime’s investment accelerates timelines
The NJOM-3 appraisal well, initially slated for early 2027, has been pushed back to April 2027 as Tower Resources recalibrates its plans. Jeremy Asher, Tower’s CEO, emphasized the cautious approach: « We currently plan to commence drilling in early Q2 2027, » adding that an earlier start remains possible but is not yet confirmed. Contract negotiations for the drilling rig are ongoing, with Tower refusing to disclose details until a firm agreement is signed. However, logistical preparations are already underway in Douala, where essential equipment—including a well suspension system—has been staged to enable future production if test results are favorable.
The $15 million pledge from Prime Global Energies is poised to cover the Njom-3 program’s remaining costs, while additional capital will be required for post-drilling assessments and potential commercial development. For Tower, which reported just $66,583 in cash against $2.91 million in current liabilities as of June 30, 2026, this deal is nothing short of a financial lifeline.
Tower’s survival hinges on Prime’s injection
Tower Resources faces a stark choice: finalize the Cameroonian farm-out, pursue alternative asset transactions, or seek fresh capital to meet its obligations. The company has yet to generate revenue, with first-half capitalized expenditures in Cameroon totaling $453,000—less than half of the $982,000 spent in the same period last year. These costs cover Njom-3 preparations, engineering studies, drilling planning, and Douala office operations. While Prime’s funds will bridge the immediate gap, future phases—including development drilling and commercialization—will demand additional funding rounds.
For Cameroon, the Thali permit’s breakthrough carries broader implications. As the country seeks to revitalize its oil sector amid global energy transitions, Prime Global Energies’ entry could signal a turning point—provided the Njom-3 well delivers on its promise and unlocks the potential of one of Cameroon’s most anticipated offshore discoveries.