Shares of Tower Resources PLC (LON: TRP) surged 6% after the company released an update upgrading the resource estimates on its Algoa-Gamtoos license region, offshore South Africa, operated by New Age Energy Algoa (Pty) Ltd, its 50% partner.
The company identified new oil resources in the Algoa-Gamtoos region, such as a deeper slope section, which is now estimated to have 231 million boe Pmean recoverable resources. A basin floor fan section has 710 million boe Pmean recoverable resources.
The operator discovered a new substantial lead in a submarine fan complex in the shallow-water Gamtoos area containing an estimated 135 million boe Pmean recoverable resources.
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The new data was generated from PGS’s reprocessing work on 4,500 line kilometres of 2D seismic data collected from the Petroleum Authority of South Africa (“PASA”) and data previously owned by the partner companies.
The new recoverable oil resources add up to 1,983 MMboe and the existing oil in place, which currently stands at 5,273 MMbl.
Tower Resources has a strong presence in four African countries with significant oil resources: Cameroon, Namibia, Western Sahara and South Africa.
The firm also has gold and diamond exploration and mining projects in Canada’s British Columbia province, which recently reported the recovery zone’s extension within its 1244-metre diamond drilling program at its Nechako Gold property.
Investors cheered the news given that Tower Resources recently raised £1.25 million via a share placement announced on January 14, 2021, which caused its share price to fall significantly.
Tower Resources share price.
Tower Resources shares surge 17.64% to trade at 0.60p having risen from Friday’s closing price of 0.51p.