LON:TRP | Bit Of Life - Iti Report Due?

21st Sep '09 by djpreston

9 comments 4977 reads

Well, there seems to be some interest in TRP today. I guess its the BB crowd buying ahead of the post mortem results on the Iti well.

Can you tell its a quiet day and Im a bit bored?

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Djpreston

Premium Member

9 comments

djpreston

21st Sep '09

Well, well, well. Heres the RNS (pure coincidence of coursE).

http://www.investegate.co.uk/Article.aspx?id=200909211452364022Z

Extract:

Tower Resources is pleased to announce that it has concluded its detailed evaluation of information from the Iti-1 well. Analyses and interpretations have been carried out by independent experts and specialists using relevant laboratories in the UK. The overall findings of the re-evaluation is that the Iti-1 well found 15-20 metres of clean reservoir sands, with significant potential to contain oil just above basement between 540 and 575 meters. This conclusion would need to be verified by a well test, and given the high cost of re-entering the existing well it is likely that the company will instead drill another well on the Iti structure at a later date. However, the company's first priority, and commitment under its work programme, is to drill a second exploration well, and the company is still considering the best location for this second well in light of the information that the Iti-1 well has provided. The company hopes, subject to Government approval, to drill this second well in early 2010, with a target of February.

emptyend

21st Sep '09

Could be something or nothing - rather difficult to tell from what they've said. Any comments from some of our resident geologists and drillers?

GBP have also announced - though they've not added to what TRP have said and nor have they indicated whether they will part-fund the proposed well.

djpreston

21st Sep '09

Hmm, most odd.

Id have expected the ADVFN mob to lap this up. From the preliminary result on Iti I had written off their Uganda licence. Now there seems to be a second chance.

As you say, Input from our specialists woudl be most welcome here.

loglorry

21st Sep '09

This is a bit strange:-

Detailed discussions with the Government of Uganda have commenced to jointly agree the significance of these updated results. The immediate work programme will focus on evaluating prospective well locations and planning for drilling a second exploration well early in 2010. A further update will be provided to shareholders once a firm forward programme has been agreed with the Government of Uganda, hopefully in the second half of October. A follow up well on the Iti structure will be considered in due course to confirm a working hydrocarbon system within the structure.

Could the negotiations and the fact there might now be some oil where there wasn't before be related? I'd like to think not but I suppose you can't rule it out. Either they didn't want to admit there was a find before they got some kind of agreement from the Ugandan government or perhaps this news is to try to get them to seal the deal faster.

Anyone else think that it could just be a barganing chip being played to aid negotiations?

Log

djpreston

21st Sep '09

Log

Woudlnt read anythign into it. It will be getting the governemnt to agree that it is a discovery after all and not a duster. Then there are the discussion re Environmental impact blah blah blah.... Seems like standard Govt BS discussions.

SW10Chap

22nd Sep '09

In reply to djpreston (post #1)

As a non-follower it looks like a lot of nothing to me. Obviously the bit they want people to see is:

The overall findings of the re-evaluation is that the Iti-1 well found 15-20 metres of clean reservoir sands, with significant potential to contain oil just above basement between 540 and 575 meters

...from which the key phrase is significant potential to contain oil.

And what did it take to draw that conclusion?

Analyses and interpretations ... carried out by independent experts and specialists using relevant laboratories in the UK

(Nice to see they didn't use irrelevant labs, anyway!)

It's a dry well. When you've got HC then you know that at the wellsite - you don't send raw data and samples off for three months of evaluations to find out. Not only that, but I'm surprised they couldn't see 15m of clean reservoir sands on the wireline logs either.

I've had a quick look through this RNS and the one for June to see if there's any suggestion that the wireline programme was an almighty SNAFU or done on a shoestring budget, but that doesn't seem to be the case. Indeed, they even ran wireline formation testers - although they may be dialling the optimism levels up to 11 with this one:

Fluid samples taken by a wireline formation fluid sampler produced what had initially appeared to be samples containing only water. Subsequent inspection of the sample chambers showed oil traces

Pound to a penny that'll be WD40 used in cleaning and servicing the formation tester...

Detailed discussions with the Government of Uganda have commenced to jointly agree the significance of these updated results.

Is there a requirement in the licence that they need to find stuff in order to move on and do more work?

SW10

emptyend

22nd Sep '09

Hi SW10,

Sadly none of your comments surprise me........

....needless to say, some of the ADVFNers have convinced themselves that GBP are going to be stumping up for the next well. Whilst I dare say that GBP will pay for their 25% share that they have already earned, I think its a big leap to assume they'll pay the lot in expectation of earning another 25%.......more likely they would want others to share the risk, I suspect.

rgds

ohisay

19th Jul '10

Found by TommyTrades on Advfn.
For anybody who remembers being around that morning when there was an avalanche of TRP sells and TRP was forced to issue a holding statement around midday - this is some kind of explanation..Strikes me they got off fairly lightly.

http://www.whatinvestment.co.uk/making-money/share-dealing/news/1269373/father-and-son-fined-following-fsa-market-abuse-investigation.thtml

Jeremy Burley was fined £144,200, including a disgorgement £21,700 of profit made through the market abuse.
His father, Jeffrey Burley, was fined £35,500 for his part in market abuse.

Jeremy Burley was previously managing director Ugandan firm BMS Minerals, which leased vehicles and equipment to companies such as Tower Resources.

During his employment at BMS Minerals, the son acquired inside information relating to the failure of initial drilling by Tower Resources and the unlikelihood of the firm to proceed with a second well.

funkfeet

28th Mar '11

Seismic reports due anyday, this Sp will raise on expectation, bigger things to come from the small cap. Uganda and Namibia currently being explored and lest RNS was more than exciting. Watch these go up over the next couple of months.

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Bit of life - Iti report due?

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Djpreston

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