Tower Resources plc ("Tower" or "the Company") (AIM code: TRP), the AIM-listed independent oil and gas exploration company with exploration licences in and , is pleased to provide an update on the Company’s African projects. These assets were acquired by Tower in a merger with Neptune Petroleum Limited approved by shareholders on 16 January, 2006. We are pleased to report that good progress has been made with technical evaluation work in both Uganda and Namibia, enhancing the potential of both assets.
In Uganda, a detailed interpretation of gravity-magnetics ("G-M") survey data previously recorded across Tower’s Block EA5 has been completed, along with a geochemical study to assess basin maturity. The results are very encouraging, indicating sediments up to 3.5 km thick within the graben area of EA5, which should be mature for hydrocarbon generation below a depth of approximately 2,000 metres. Additional G-M data is planned to be acquired during the forthcoming dry season (September-October) to supplement the existing database. However the results to date have offered sufficient confidence for farmout activities to begin.
The Board of Tower believe that conditions for oil generation and entrapment in permeable reservoirs in Block 5 are similar to those in Block 2, where the recently-publicised oil discoveries of the Hardman-Tullow oil consortium are located, about 100 miles (160 km) south-west of Tower’s Block 5 along the same Ugandan rift trend. Testing of the Waraga-1 discovery well in Block 2 has just been completed with the well producing at cumulative rates in excess of 12,000 bopd over three intervals.
In Namibia, detailed interpretation of almost 10,000 km of purchased 2D seismic data across the licence area (Blocks 1910A, 1911 and 2011A) has been completed. A geochemical study to assess source rock maturity and a sea surface oil seeps survey by satellite imaging are nearing completion. The seismic interpretation results are most encouraging identifying numerous leads in several geological settings. Many of the structures identified are of commercial significance with a few structures capable of containing prospective resources ranging in the order of 1,000 mmb of recoverable oil, if hydrocarbons are present. More work is required to assess the exploration risk of the various leads including detailed seismic reprocessing and analysis to more rigorously investigate the significance of hydrocarbon indicators highlighted by the interpretation to date. Farm-out initiatives will be undertaken once this work is complete.
Further updates will be provided to the market as the farmout campaigns in and proceed.
An updated version of Tower’s investor presentation will be posted on the Company’s website (www.towerresources.co.uk) at the same time as this release.
For the purposes of AIM Rule 11, this announcement has been reviewed by Tower Resources’ Executive Director, Russell Langusch BE (Hons) M Eng Sc, a Petroleum Engineer of more than 30 years standing and a member of the SPE.
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