Tower Resources cheered by updated assessment of Namibia acreage

Thursday, Jun 30 2011 by
1
Tower Resources cheered by updated assessment of Namibia acreage

AIM listed oil and gas exploration group Tower Resources (LON:TRP) has released the details of a long-awaited competent persons report on the technical and economic details of its acreage offshore Namibia, where it holds a 15% interest. The report reaffirms that the Delta Maastrichtian prospect remains the main target for an exploration well and best case estimates of prospective resource have been calculated based on whether it strikes oil, gas condensate or dry gas. Tower said the independent reassessment by Oilfield International Ltd (OIL) of Licence 0010 had confirmed its potential as a world class group of oil and gas prospects.

In the event of oil, the consultants have estimated 317m barrels plus 484 billion cubic feet of natural gas, net to Tower. In the event of gas condensate, the estimate stands at 38m barrels and 1.15 trillion cubic feet of gas and in the event of dry gas, OIL has calculated 3m barrels and 1.17 trillion cubic feet of natural gas – all net to Tower.

Tower is fully carried financially by Arcadia Expro Namibia through an initial exploration well and a contingent second well. A well on the Delta structure is scheduled to be drilled by the end of the first quarter of 2012. The well will test as many as five zones of interest including two prospects and three leads targeting a best estimate resource potential of an estimated 6-12 billion barrels of recoverable oil equivalent (gross) depending on whether the fluid is predominantly gas or oil respectively.

The latest reassessment follows the interpretation of high quality 3D seismic data acquired in 2010 over the Delta target. OIL has calculated an Expected Monetary Value for the prospective resources of Tower and, in just the Delta Maastrichtian prospect, an EMV of US$744 million has been calculated. Tower said it believed there is also a very high upside in the other Delta horizons. In an interview with Stockopedia earlier in June, Tower’s chairman Peter Kingston said the potential of the Namibian acreage was one of the most exciting things he had seen during his career in the oil and gas industry.

Gross un-risked prospective recoverable resources from the Delta Palaeocene, which has now been upgraded from a lead to a prospect, and the other licence-wide supplementary leads at the 50% probability level amounts to about 10…

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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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3 Comments on this News show/hide all

Biggles 1st Jul '11 1 of 3

I've never heard of Oilfield International Ltd of Hayling Island!

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trevorT 4th Jul '11 2 of 3
1

In reply to post #57865

Their website - www.oilfieldinternational.com - is mostly 'under construction' as is, I suspect, the firm itself. As for their results, they are so heavily qualified (eg "un-risked", "potential", "prospective") as to render the numbers practically meaningless, in my opinion.

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Biggles 4th Jul '11 3 of 3

In my humble opinion, I agree with you! It's none too professional to come up with very large numbers and then qualify them so much.

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