Felt it was about time for a Tower Resources thread on Stockopedia. I am still finding my way on this stock but the basic summary seems to be:
- Independent oil and gas exploration company with a regional focus on sub-Saharan Africa. Had a 100% exploration licence (now 50%) in Uganda and a carried 15% Licence interest in Namibia achieved through a reverse takeover of AIM listed Neptune in August 2005.
- In Namibdia, it holds three contiguous exploration licences offshore: blocks 1910A, 1911 and 2011A, which cover an area of approximately 22,000 sq km in water depths ranging from 200 to 3,000 metres. In Namibia, Arcadia Petroleum Limited funded a 2-D seismic commitment and is funding two exploration wells, with a view to spudding its first well in Namibia by Q2 2010. However, given the very large structures and some complexity confirmed in likely reservoir geometry, the results in April indicated that a large 3D seismic survey would be taking place in the final quarter of 2009 with detailed interpretation taking place over most of 2010. "This approach will substantially reduce the risk of selecting the first well location but would delay drilling of a first well until late 2011 at the earliest". http://www.stockopedia.com/news/announcement/TRP/090421trp000417.htm
- In Uganda, it has a licence for onshore Block 5 in northern Uganda which extends to 6,040 sq km and is at the northern end of the Albertine Graben. Has farmed out 50% to Global Petroleum Limited (http://www.stockopedia.com/news/announcement/TRP/090213trp2725n.htm) in exchange for GBP meeting the cost of drilling two exploration wells (Iti-1and most likely Sambia-1)
- TRP announced in late May that they have spud the Iti-1 exploration well. The well is being drilled to an estimated depth of 650 metres and operations should take two to three weeks so fingers crossed! http://www.stockopedia.com/news/announcement/TRP/090529trp000771.htm
- While the focus is currently on Uganda and Namibia, the Company has acquired Comet Petroleum which is the 50% holder of two exploration licences in the Saharawi Arab Democratic Republic, and is in negotiation for an exploration licence in the north east of Tanzania.
Background materials:
- Decent investor presentation here: http://www.towerresources.co.uk/uploads///Tower%20Resources%20-%20Investor%20Presentation%2015%20May%202008.pdf
- AIM re-admission document: http://www.towerresources.co.uk/uploads/TR_162229.pdf
- Research report from Feb 2009: http://bit.ly/149z2r plus an older one - http://bit.ly/5i7FR
