Tower Resources (LON:TRP) the AIM listed oil and gas exploration company with acreage interests predominately in Uganda and Namibia has announced that it is pressing ahead with its Uganda work programme through its wholly owned subsidiary Neptune Petroleum (Uganda) Ltd.
Tower Resources, who own and operate 100% of the onshore Uganda Block EA5 situated in the Rhino Camp Basin have commissioned ARKeX, a geophysical company to carry out a hi-tech airborne survey which will enable Tower to gain a better understanding of the subsurface geology over its large 2,941Km2 licence. [1] The aero gravity gradiometry survey outcome data, is due within the month and will aid in identifying targets and provide basement level structure detail as used successfully in the blocks to the South of EA5 where Tullow Oil Plc (LON:TLW) and Heritage Oil (LON:HOIL) have enjoyed much documented success to date proving P50 reserves of over 700mm barrels. [2]
Planning is now underway for the follow up seismic study to start in Q3, which will cover an area up to 500km and will also include infill areas where no data is currently present, namely the Balala swamp and the Nial flood plain. Having already invested around £23 million in its Uganda project, Tower is looking for a partner to join them and earn a negotiable working interest in the licence based on their contribution to the seismic study and the 2011 commitment well, with Tower noting that; [3]
“A number of third parties are reviewing the data with a view to proposing funding of the future seismic programme and the commitment well”
Global Petroleum (LON:GBP) look set to maintain their relationship with Tower in Uganda through the agreement which allows Global the option to convert its investment to date on reimbursement of proportional costs, into a 25% legal and beneficial interest for the remainder of the licence period which runs to March 2012. The current costs Global will be expected to contribute towards should they decide to maintain their share will include the hi-tech air bourn gradiometry survey currently being undertaken at an estimated cost of around £1 million, Peter Kingston, the Tower Resources Executive Chairman commented: [3]
"This agreement with Global recognises the considerable…
