Tower Resources said its Thali prospect offshore Cameroon remained an 'attractive' asset despite the recent rout in oil prices. In an updated reserves report, the asset's net present value and best estimate of contingent resources using the March 10 Brent forward curve was $119m, the company said. That compared with a 2018 reserves report figure of $158m. Tower Resources said the reason why the valuation had fallen by less than 25% included that forward Brent prices havd fallen by less than prompt prices. It also said the projected costs of the development were 'low' and had actually fallen a little reflecting the company's experience sourcing equipment for a recent for a well. 'So even in the lower oil price environment in which we now find ourselves, which echoes the price environment at the end of 2015 shortly after we first entered the Thali license, the Thali license is an attractive asset which we expect will earn excellent returns, chairman and CEO Jeremy Asher said.
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