Tower Resources plc has been advised by Arcadia Expro Namibia (PTY) Ltd ("Arcadia"), that they have received consent from the Minister of Mines and Energy of the Republic of Namibia for Arcadia and Neptune Petroleum (Namibia) Limited, a wholly owned subsidiary of Tower, to enter the First Renewal Exploration Period under the terms of the Licence 0010 Production Sharing Agreement "PSA". This is a two year term which expires on August 23rd 2011. The work commitment variation agreed and approved by the Minister is now a 3D seismic programme amounting to no less than 1000 square kilometres rather than the exploration well commitment when the PSA was signed on 23rd August 2005. This variation reflects a clear benefit in gathering and interpreting further seismic data ahead of drilling and the length of time required to process the data.
Arcadia is now actively pursuing a contract with seismic acquisition contractors to acquire more than 1500 sq km of 3D seismic beginning probably late in 2009 and no later than March 2010. The survey is expected to take between two to three months, depending on weather conditions, to complete the programme. Processing and interpretation of the data using AVO interpretation technology are likely to take as long as nine months to complete.
The new 3D seismic data will add to the information provided by the 2007 2D seismic survey and additional purchased data, interpretation of which confirmed the presence of giant structures and a significant probability that these would be oil bearing.
Peter Kingston, Executive Chairman of Tower Resources commented:
"Namibia is a very exciting exploration venture and I am pleased that the next stage of activities is now underway. This proposed seismic programme will provide far more detailed structural and reservoir information than we have at present allowing a well location to be selected with greater confidence than could be done with currently available information."