Tower Resources (LON:TRP), the oil and gas exploration company with interests in Uganda and Namibia, has raised £4.275m in a significantly oversubscribed share placing priced at 4.75p. The new cash will be used to increase the company’s working capital resources and help it fund near term seismic operations in Uganda. After two unsuccessful wells drilled on its EA5 licence in Uganda between 2009 and early 2010, the company is hoping to get lucky with its third attempt later this year. In addition, Tower said it was speeding up plans for a well in Namibia and was hoping to drill there before the end of 2011.
The Tower Resources share price rose by 3.6% to 5.68p on the news. The fundraising came with an update on Tower’s plans for its projects in the coming months. On licence 0010 in Namibia, where Tower has a 15% carried interest, processing of 3D seismic data has been completed and data quality is excellent. On first inspection, the results of the 2D seismic interpretation are enhanced and the very large, simple four way dip closed Delta structure has been confirmed. There are also clear indications of “pock marks”, which are an accepted indication of light hydrocarbons, constrained below the regional seal and within the closure of the structure - these represent an indication of hydrocarbons, completely independent of the hydrocarbon indications interpreted from AVO analysis of the 2D seismic.
Detailed interpretation, which will include evaluation of direct hydrocarbon indicators and also reservoir facies characteristics, has begun and significant results are expected by the end of March 2011. Arcadia Petroleum, which is the operator of licence 0010 and is funding Tower for the cost of the first well, has accelerated its programme to put in place funding and to contract a deep water drilling rig with a view to drilling in the final quarter of 2011. This timing now has a high priority but is subject to timing of rig availability. Tower said the Competent Person’s Report would be updated with a view to publication before the middle of 2011.
Turning to Uganda, Tower said that the initial findings of a gravity gradiometry survey (GGI) late last year had been confirmed during the final interpretation. Those findings include the probable existence of an active oil generation “kitchen” and an apparently closed structural feature with an…
