Tower Resources plc, the oil and gas exploration company with interests in sub-Saharan Africa, principally in Uganda and Namibia, has today announced interim results for the six months ended 30 June 2009.
The year to date has seen some important technical and operational developments:
- The company drilled Iti-1, its first Uganda well in EA5
- Initial reports suggested the Iti-1 well had encountered no reservoir sands and it was therefore abandoned in June 2009
- Re-evaluation of the Iti-1 well data by independent specialists identified 15-20 metres of net reservoir sand having significant potential to contain oil
- A second well is to be drilled in EA5 in the first quarter of 2010
- A fund raising of £7,000,000 (before expenses) allows Tower to fund the second EA5 well entirely but partners are expected to be participating
- A 1580 sq km 3-D seismic programme in Namibia Licence 0010 is contracted to begin before end 2009
- The Delta prospect is now the focus of evaluation and has reserve potential of 3 billion barrels
As expected the Company reported a loss for the period of $264,789 (first half 2008 $358,828).
Tower Resources Executive Chairman, Peter Kingston, commented:
“We are very pleased that independent specialists have reviewed the results of Iti-1 and interpreted a net reservoir interval of 15-20 metres with significant potential to contain oil. While realising any value from the Iti structure would require further drilling, this also demonstrably raise the potential from the rest of the Licence where significant sized structures are predicted to exist. The Board has great confidence in the remaining prospectivity of the Company’s prospects and directors have substantially contributed to the recently announced fundraising to remove any funding risk in respect of the second EA5 well.
Continuing Namibia seismic evaluation has confirmed multi-billion barrel potential in the Licence 0010 and a programme of 3-D seismic acquisition is currently contracted to thoroughly evaluate the chances of success. Drilling in Namibia is now expected to occur in 2011.
Nearly four years ago, Neptune Petroleum acquired two Licences in sub-Saharan Africa. The first Uganda well was initially thought to be disappointing but there is now greater hope for future success. Drilling in Namibia is delayed until late 2011 but prospective reserves remain very high. The Tower Board is confident that one or both of the current opportunities will reward shareholders who have continued to give their support.”
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