Cameroon’s oil sector is digesting a pivotal decision. Tower Resources, the UK-based operator of the offshore Thali permit, has secured presidential approval to farm out a 42.5% interest to Prime Global Energies. The move has triggered a wave of reactions across the industry, with stakeholders debating whether this long-awaited capital injection can finally revive a project stalled by years of financial uncertainty. The deal, still pending administrative completion, commits Prime to a $15 million investment in the work programme, targeting the NJOM-3 appraisal well. At the European Central Bank’s reference rate of 28 September 2026, that sum equates to roughly 8.65 billion FCFA.
The transaction is not a direct cash payment to Tower. It is an investment commitment, a classic farm-out mechanism in which a partner finances a portion of the technical programme in exchange for an equity stake. Prime Global Energies will join Thali as a non-operating partner, with day-to-day operations remaining under Tower Resources Cameroon, the local subsidiary of the London-listed group.
Yaoundé’s approval leaves administrative loose ends
Despite the presidential green light, the bureaucratic process is not yet complete. In its half-year accounts to 30 June, published on 28 September, Tower confirmed it had seen a copy of the presidency’s letter addressed to the Prime Minister’s office, the Ministry of Mines, Industry and Technological Development (Minmidt) and the National Hydrocarbons Corporation (SNH). The Minmidt must still issue the order extending the initial exploration period and forward the formal approval letter for the transfer.
Until these duly executed documents are in the parties’ hands, the deal remains on hold. Tower acknowledges that the completion timetable is uncertain at this stage. Such caution is telling: the exploration programme is already several years behind schedule, starved of the funds needed to launch drilling operations.
Prime Global Energies, registered in the UK and focused on upstream oil and gas, is no stranger to the sector. Until December 2024, the company was known as Prime Pakistan Limited, having previously operated as Eni Pakistan Limited. That lineage with the Italian group Eni gives it operational experience that could reassure Cameroonian authorities about the technical strength of the new partner.
NJOM-3 well pushed to second quarter of 2027
Prime’s entry is primarily aimed at securing financing for NJOM-3, the next appraisal well planned on Thali. Tower has revised its timeline: drilling is now expected to begin in early Q2 2027, from April onwards, compared with an earlier assumption of Q1. An earlier start is not entirely ruled out, but management prefers the more conservative window in its forecasts.
“We currently plan to commence drilling in early Q2 2027,” says Jeremy Asher, chairman and CEO of Tower Resources. The choice of drilling rig is not yet contracted. The company continues to assess available units on the market and has decided to stop communicating on this point until a firm contract is signed. Agreements with other service providers needed for the operation are, however, already in place.
Some logistics are already set up in Douala. Tower has stored there, alongside other equipment destined for NJOM-3, a system that will allow the well to be suspended after testing and later reused for production if test results prove encouraging.
A cash-strapped balance sheet makes the deal critical
Prime’s contribution is almost existential for Tower. The group states in its accounts that it will need to either complete the Cameroon farm-out, conclude another transaction on its assets, or raise additional capital to meet its commitments. As of 30 June 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 capitalised in Cameroon, down from $982,000 a year earlier. These commitments cover NJOM-3 preparation, engineering studies, drilling planning and the running of the Douala office. The $15 million promised by Prime should cover the remaining balance needed for the appraisal well. Subsequent testing and any commercial development of the field will require further funding rounds.
What lies ahead
The farm-out’s completion hinges on Yaoundé’s administrative follow-through, while the industry watches whether Prime’s involvement can finally unlock Thali’s potential. For now, the reaction is one of cautious optimism mixed with concern over the project’s chronic delays and Tower’s fragile finances.
