Further to the announcements of 22 December 2008 and 9 November 2009, Neptune Petroleum (Uganda) Limited, the wholly owned subsidiary of Tower Resources plc (AIM: TRP), has reached agreement with Global Petroleum Limited (“Global”) whereby Global will have a continuing option to participate in the Uganda project whilst having no current obligation to contribute to ongoing expenditure.
The agreement provides Global with a continuing right to convert its investment in the project to date into a 25% legal and beneficial interest in Uganda Licence EA5. Under the terms of the agreement, Global shall have the right to elect to participate until such time that Tower has obtained a firm offer of funds, from a third party or through its own fund-raising efforts, to fund any material operation in respect of the Licence. Global will be required to reimburse Tower for 25% of ongoing costs during the option period should it elect to participate and, in the event of third party funding, Global will dilute proportionately with Tower.
The current operational status is that the aero gravity gradiometry survey is nearly 30% complete and interpreted data should be available within a month – planning for the follow up seismic survey has begun. A number of third parties are reviewing the data with a view to proposing funding of the future seismic programme and the commitment well.
Peter Kingston, the Tower Resources Executive Chairman commented: “This agreement with Global recognises the considerable value of Global’s past investment and a shared view that there remains future potential in the EA5 Licence. I welcome their continued involvement in future activities.”