StockMarketWire.com - Oil company Tower Resources said it had agreed to sell a 49% non-operating interest in its Thali prospect offshore Cameroon to Beluga Energy.

The binding heads of agreement covered$15 million towards the cost of the NJOM-3 well that Tower was planning to drill on the Thali block.

Beluga will receive the 49% working interest, subject to an overriding royalty of 10% for Tower's subsidiary TRCSA on the contractor share of production accruing to Beluga.

The well cost was currently expected to be about $16.8 million, of which about $3 million had already been spent.

Each party wuld recover costs actually funded and recoverable under the production sharing contract.

Tower said it would effectively contribute its non-recoverable costs in consideration of the 10% overriding royalty on the contractor share of production.

Costs in excess of $15 million, and future costs, would be funded pro-rata with respect to Tower's and Beluga's working interests.

Tower said it was presently negotiating a contract for a rig to drill the NJOM-3 well.


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