Tower Resources (“Tower” or the “Company”), the AIM-listed oil and gas exploration company with assets in Uganda and offshore Namibia, is pleased to announce its Interim Results for the six months ended 30 June 2011.
- 3D seismic interpretation completed and updated CPR published in June 2011
- The Delta Maastrichtian prospect has been confirmed as the principle target with gross best estimate of 2.2 billion bbl and GCOS upgraded from 26% to 40%
- Tower Resources has a 15% carried interest (through first two wells)
- CPR update assigns risked P50 prospective recoverable resources of 270 mmboe net to Tower (98 mmboe from the Delta Maastrichtian target alone)
- Arcadia farmout discussions progressing positively
- Namibia will see significant drilling from industry in 2012
- Completion of 187 km 2D seismic programme identifying location for third well (Mvule-1)
- In the event of success additional structures are identified for follow-up drilling*Mvule-1 exploration well to target 80 mmboe from a robust well defined prospect
- Well target can be spudded by December 2011
- Successful funding programme in February 2011 raised gross proceeds of £4.3m
Progress over the course of 2011 has brought closer the drilling of a third well in Uganda and the first well in Namibia, with additional 2D seismic in Uganda having identified new, better prospects and 3D seismic in Namibia having resulted in an improvement in the potential resources in place.
In Uganda the Company estimates that the prospect being evaluated (Mvule) has resource potential of about 80 million barrels in one of two adjacent fault traps. Success would open up further potential from a follow-on appraisal programme. This is a good robust project which the Tower Board believes has an attractive risk/reward profile. Planning for the well is at an advanced stage and the Company intends to drill the well before the end of 2011, subject to suitable funding and rig availability.
In Namibia, the Competent Persons Report (“CPR”) for the Namibia Licence was updated after the acquisition of 3-D seismic and this report points to enhanced resource potential. The perceived chance of success has also improved from that assumed in the previous CPR carried out in 2010. The timing of this very exciting well will remain uncertain but the Board believes that it is still technically feasible to complete a well before the middle of 2012, but the actual schedule will have to be determined with Arcadia’s ultimate choice of partner.
Peter Kingston said:
“The Board believes that the quality of your Company’s prospects is exceptional and definite progress is being made towards drilling in both Namibia and Uganda. The Board continues to consider all funding and operational options to ensure that drilling remains on schedule.”
Download interim results in full [553KB]
Tower Resources plc
Peter Kingston, Chairman
Northland Capital Partners Limited
(Nominated Adviser and Joint Broker)
Gavin Burnell, Edward Hutton
Charles Vaughan (Sales)
020 7796 8800
(Financial Adviser and Joint Broker)
Garry Levin, Chris Sim, Anu Tayal
0207 071 4300
Patrick d’Ancona, Chris McMahon, Andrew Benbow
020 7920 2358