Tower Resources builds expectations in Namibia

Monday, Sep 27 2010 by
3
Tower Resources builds expectations in Namibia

Tower Resources (LON:TRP), the AIM listed oil and gas exploration group, continued to talk up the prospects for its licences in Namibia and Uganda this morning, with the publication of its interim results to June 30, 2010.

Earlier this year independent experts confirmed the “world class potential” of Tower’s prospects in Namibia and that there was a reasonable chance of being successful with the first well when drilling gets under way there in 2012. This month the company wrapped up a 1,580 sq km 3D seismic surveying programme over its acreage in Namibia and said that it was on course to process the data by early 2011.

In today’s update, Tower reiterated that an independent competent persons report (CPR) had now confirmed the potential of Licence 0010 in three simple large structures, Alpha, Gamma and Delta. The CPR estimates that a firm prospect at one geological level of Delta has a 26% chance of discovering 2.4 billion barrels of oil equivalent (boe) recoverable and, in a secondary lead, an 8% chance of discovering 2.1 billion boe recoverable. Leads in Alpha and Gamma have estimated unrisked prospective resources of 2.6 billion boe recoverable. The total expected monetary value for Tower’s 15% share of Licence 0010 has been estimated as US$696 million (£0.44/share).

Elsewhere, Tower said it remained confident in the prospects for its acreage in Uganda, where it has previously drilled two unsuccessful wells. The company said the interpretation of all well and licence data pointed to a working petroleum system in EA5, which made further exploration attractive. The company reported a loss for the period to June 30, 2010 of $821,099 against $264,789 in the first half of 2009.

Peter Kingston, the executive chairman of Tower Resources, said: “The completion of the 3D seismic programme in Namibia is an important milestone in the exploration of this exciting venture. The Tower Board is delighted that independent experts have confirmed the world class potential of the prospects and the reasonable chance of being successful with the first well. A well may now be drilled within the next 18 months. I would like to thank all of those loyal shareholders who have shared the Tower Board's enthusiasm for the Namibia venture and are now within sight of seeing the outcome. Uganda still…

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Tower Resources plc is an upstream oil and gas exploration company. The Company has exploration projects in Cameroon, South Africa, Zambia, and Sahawari Arab Democratic Republic (SADR). The Company has two segments: Africa and Head Office. The Company is an operator of international licenses with a focus on projects in Africa. It holds an interest in Thali Production Sharing Contract (PSC) in Cameroon, which covers an area of approximately 120 square kilometers (kms) and lies in the prolific Rio del Rey basin, in the eastern part of the Niger Delta. It holds an interest in Algoa-Gamtoos license, South Africa, which covers an area of approximately 11,800 square kms. It also holds an interest in the offshore Guelta and Imlili blocks, and the onshore Bojador block in the SADR, which covers an area of approximately 72,700 square kms. It has interests in blocks 40 and 41 of the frontier Zambezi Basin, which covers an area of approximately 6,950 square kms. The Company has no revenues. more »

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