Tower Resources settled a cost dispute Friday with Spain’s Repsol tied to a dry well drilled in offshore Nambia earlier this year.
UK-based Tower will be allowed to reduce its share of the drilling costs for the Welwitschia well to $28.3 million from $33 million.
Tower has already paid $25.3 million and its subsidiary Neptune Petroleum is in the process of making the remaining $3 million payment, Upstream said.
“We are pleased to have resolved these matters and now to be working to improve our understanding of the untested prospectivity in our Namibia licence,” Tower CEO Graeme Thomson said.
The Welwitschia well, located in license PEL0010, drilled dry in June with logging evaluation data showing less developed reservoirs than initially expected.
Repsol operates license PEL0010 with a 44 percent stake.
Tower holds a 30 percent stake and UK-based Arcadia Petroleum holds a 26 percent stake.
The Repsol deal leaves Tower with a cash position of $7.5 million.
Tower said it can adequately fund its remaining $1.9 million commitment to drill the Badada-1 well in onshore Kenya.
Badada-1 is projected to spud in early January 2015.