Tower Resources plc ("Tower" or "the Company"), the AIM – listed oil explorer, is pleased to announce that it has agreed a six month extension to the First Exploration Period of its Ugandan licence and has also committed to drilling two firm wells with one contingent well in the Second Exploration Period.
The changes have been agreed with the Ugandan Government, and relate to the conditions attached to the First and Second Exploration Periods of the Company’s Licence Agreement in respect of Block EA5, located in western Uganda.
The term of the First Exploration Period has been extended by six months, now ending on March 27th 2008. The well requirement for the Second Exploration Period has increased to two firm wells and one contingent well which represent an appropriate programme given the recent successes in other similar Uganda Licences.
These changes will facilitate optimum management of the seismic programme and implementation of an early exploration well. Shooting of a 250 km seismic programme is anticipated to begin in July 2007 and preparations have begun for a two well exploration programme starting as early as possible in the first half of 2008.
Peter Kingston, Tower’s Executive Chairman, stated that:
"With the amendments to the licence terms, Tower can now initiate a sensible programme of continuous operations culminating in two exploration wells, which will build on the success of Tullow and Heritage in clearly establishing the commercial potential of the Rift Valley in West Uganda".
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