REG - Tower Resources PLC - Brulpadda well statement and TRP resource update

Tower ResourcesAnnouncement

08/02/2019 07:05

RNS Number : 4380P
Tower Resources PLC
08 February 2019
 


8 February 2019
 
 
Tower Resources plc
 
("Tower" or the "Company")
 
Statement regarding the results of the Brulpadda exploration well, Outeniqua Basin,
Offshore South Africa, and upgrade of Operator's resource estimates on Tower's South African license.
 
Tower Resources plc (TRP.L, TRP LN), the AIM listed oil and gas company with its focus on Africa, notes the announcement dated 7 February 2019 from Total S.A. ("Total") regarding the results of the Brulpadda well, which has reported a significant gas condensate discovery in Block 11B/12B (Total 45% (Operator), Qatar Petroleum 25%, CNR International 20% and Main Street, South African consortium 10%) located in the Outeniqua basin, offshore South Africa.
The well was drilled to a total depth of 3,633 metres and encountered 57 metres of net pay in Lower Cretaceous reservoirs, and with this discovery opens a new world class gas and oil play. Total have stated that they believe the new discovery could hold between 500 million to over one billion barrels of oil equivalent and they now intend to drill several further exploration wells on Block 11B/12B to test additional prospects.
Block 11B/12B is located adjacent to the Algoa-Gamtoos licence, operated by 50% partner New Age Energy Algoa (Pty) Ltd ("New Age") and held 50% by Tower. The Algoa-Gamtoos license also contains the southern deepwater basin margin of the Outeniqua Basin that was targeted by Total's Brulpadda well and is approximately 150 kms along strike to the east from the Brulpadda discovery.
Importantly, the Brulpadda well has successfully tested the Lower Cretaceous turbidite fan play of the Outeniqua basin slope, which is interpreted to extend along strike into the southern part of the Algoa-Gamtoos block, in which the Operator, New Age, has identified on 2D seismic a substantial prospect.
The Operator has assessed the analogue prospect potential on the Algoa-Gamtoos block at 364 million boe on an unrisked basis from 2D reprocessed data, which is an increase on its previous 2018 estimate. Envoi, on behalf of the Operator, New Age and Tower have been contracted to facilitate a farm-out of equity in the licence, and a data room is currently open.
The updated (unaudited) prospective resources estimate, prepared to the SPE resource classification standard by the Operator for the five primary new prospects/leads identified during that process, is summarised on an unrisked volumetric basis in the table below.
 



Prospect/Lead


Basin


Targets/Play


Mean Prospective Resources (unrisked)
(MMboe Recoverable)




Roan


Gamtoos


 
Syn-Rift Basin Floor Strat trap


119




Reedbuck


Gamtoos


67




Steenbok


Gamtoos


34




Canyon


Algoa: Uitenhage


Post-Rift Canyon fill


80




Deep Albian


Outeniqua Basin Slope


Post-Rift Canyon fed basin slope


364
















664



The Company will be updating the information regarding Algoa Gamtoos in its website shortly, including an updated regional map, to reflect this latest development.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
 
Contacts
 



Tower Resources plc


info@towerresources.co.uk




Jeremy Asher

Chairman and CEO








 
Andrew Matharu

VP - Corporate Affairs


















SP Angel Corporate Finance LLP

Nominated Adviser


+44 20 3470 0470




Stuart Gledhill
Caroline Rowe


















Turner Pope Investments (TPI) Limited

Joint Broker
Andy Thacker
 


+44 20 3621 4120




Whitman Howard Limited

Joint Broker
Nick Lovering
Hugh Rich
 


+44 20 7659 1234




Yellow Jersey PR Limited


+44 20 3735 8825




Tim Thompson







 
 
Notes:
In accordance with the guidelines for the AIM market of the London Stock Exchange, Dr. Mark Enfield, BSc Geology, PhD Geology, Advisor to the Board of Tower Resources plc, who has over 30 years' experience in the oil & gas industry, is the qualified person that has reviewed and approved the technical content of this announcement.
Glossary:
Prospective Resources
Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.
Unrisked
Quantities which have not been adjusted for the probability of loss or failure i.e. Risked. Where Risk is defined as the probability of loss or failure. Risk is not synonymous with uncertainty. Risk is generally associated with the negative outcome, the term "chance" is preferred for general usage to describe the probability of a discrete event occurring.
Recoverable
Those quantities of hydrocarbons which are estimated to be producible from accumulations, either discovered or undiscovered.
STOIIP
Stock Tank Oil Initially In Place
 




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