Tower Resources (LON:TRP) , the oil and gas exploration company with operations in Namibia and Uganda, said this morning that initial independent analysis of its acreage offshore Namibia supported the view that there could be huge resource upside there. The company’s partner on the licence, Arcadia Petroleum, is funding Tower’s involvement in the first well and is understood to be progressing efforts to secure a rig with a view to drilling by around the end of 2011. Elsewhere, Tower said that a new 2D seismic survey over its licence in Uganda was scheduled for later in April and that a geochemical survey is already under way. The company is attempting to find a farm-out partner to join it on the licence but insisted that the costs of the new survey and a well earmarked for October 2011 could still be covered without a new partner.

Tower’s operating company in Namibia, Neptune Petroleum, has a 15% carried interest in Licence 0010. The company said that interpretation of 3D seismic was well advanced with initial conclusions delivered from all of the specialist consultants. It said that clear structural closure, sustained reservoir thickness and direct hydrocarbon indicators – AVO anomalies and pock marks – had been confirmed at the main Maastrichtian prospect level. Additional potential is confirmed at the Palaeocene horizon but also at two other formations deeper than the Maastrichtian. Tower noted that because the very large structural closures were confirmed, the indicated additional reservoir horizons had substantially increased the resource upside potential. A competent persons report is currently being updated with a targeted publication early in June 2011.

In Uganda, Tower said that a letter of intent in advance of a contract for a 2D seismic programme of 150-200km had been signed with TESLA-IMC International Ltd and line clearance is expected to begin by late April. Completion is targeted for end June 2011, by which time a well location can be selected. A high density geochemical survey, conducted by GORE Geochemical Surveys, is also under way over the prospect area together with focussed sampling around the two existing wells and an oil-bearing well in licence EA1. Separately, the Environmental Impact Assessment and early operational planning for a third well have begun. Tower noted that now the political uncertainty with respect to long term development planning in Uganda appears to…

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