Tower Resources (LON:TRP) , the AIM listed oil and gas exploration company with interests principally in Uganda and Namibia, is about to embark on a third exploration period within Block 5 of the Ugandan Albertine Basin and the eagerly anticipated 3D seismic study in Namibia.

To date, Tower Resources through its subsidiary Neptune have drilled two wells located in Uganda’s Exploration Area 5 (EA5). Both wells were a major disappointment to its shareholders by not proving a commercial find but they have increased significantly Tower's understanding of the basin and its complex geology. The main encouragement from the two wells is that they have significantly de-risked the area in terms of generation and migration of oil.  Along with surface seeps within EA5, the first well named lti-1was appraised to have the potential to contain oil in a 15-20m interval within a 35m gross basal sandstone reservoir located on the basement. [1]   The results of the second well, Avivi-1, are believed to contain a composition of thick sequences of organic rich sediments similar to that previously encountered within the area. [2]   

With the indicators to date suggesting that the oil migration in the area is deviating from mature source rocks in the deeper areas of the basin, the first priority for Tower within the forward programme will be to increase its seismic coverage and geographical appraisal of EA5, for an improved chance of hitting the sweet spot next time around.  The major achievement for Tower has been proving evidence that oil generation has been found within the exploration area which has generated third party interest for participation in the extended period, with most of the funding likely to come from the project partners. [2]  Following the Avivi-1 Peter Kingston, Tower's Executive Chairman commented:

The Tower Board has had no hesitation in deciding to continue with its exploration programme in Uganda for another two years. In particular, it is pleased that there is growing evidence of the presence of mature oil in the EA5 Licence. This is typical exploration progress, with valuable information being gained from each phase of activity which suggests that there is still everything to play for. The Board is also encouraged that exploration in Namibia is moving closer to well drilling programmes and the ultimate test of exploration potential in the area.

The Namibia prospect…

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