Tower Resources plc (“Tower”) is pleased to announce that together with Wessex Exploration PLC (“Wessex”), the “Joint Venture Partners”, it has signed with the Saharawi Arab Democratic Republic (“SADR”) an Assurance Agreement (“AA”) for a Production Sharing Contract (“PSC”) for the Imlili Block which is located offshore the territory known as the Western Sahara.
Tower and Wessex each have a 50% equity and working interest in the AA and PSC and Wessex is the operator.
The Imlili Block covers an area of approximately 16,965 square kilometres and lies offshore from the very large onshore Bojador Block (44,298 square kilometres) and east of the offshore Guelta Block (15,760 square kilometres), in each of which Tower and Wessex each have a 50% equity interest. Tower acquired its interests in Bojador and Guelta when it acquired Comet Petroleum Limited in June 2008. Water depths on the Imlili Block range from 0 to 150 metres.
The award of the block gives Tower and Wessex joint control over a swathe of prospective acreage more than 500 kilometres long in a dip direction, extending from the outcrop in the east to the deep water in the west.
The Imlili Block was poorly explored more than five decades ago but is known to be underlain by a stratigraphic section of Mesozoic and Tertiary clastic deltaic facies rocks in excess of 4,000 metres thick. The block is also underlain by a small salt basin. A few exploratory wells drilled in the block and surrounds in the early sixties had oil shows in good quality sandstones, and the geologic data available suggests the presence of all of the ingredients necessary for a working petroleum system.
The SADR is the democratically-elected government of the territory known as the Western Sahara, and is recognized by the United Nations as a non-self governing territory. Tower will be required to pay only a small annual administrative fee to the SADR to retain the block until the sovereignty of the territory has been settled. In the meantime, the prospectivity of this acreage will be evaluated using legacy seismic and exploratory well data currently available to the Joint Venture Partners.
Peter Kingston, Tower’s Executive Chairman, commented: “Tower now has potential access to adjacent exploration licences extending from onshore to deep water prospectivity. There will be limited activity until a political solution has been reached on SADR sovereignty. Once that occurs, Tower should have access to exploration acreage of the highest quality. I wish the West Saharan people good fortune in their quest for an independent future.”
The Guelta, Imlili and Bojador Blocks (Tower 50% WI) are in the Aaiun Basin, one of a series of mature passive margin basins that lie along the North Atlantic margin of Northwest Africa. The Aaiun Basin is one of very few West African basins to be left essentially unexplored in modern times, and lies adjacent to the proven petroleum productive basins of Mauritania.
For more information on Tower Resources, please visit; www.towerresources.co.uk
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
Evolution Securities (Financial Adviser and Joint Broker)
Garry Levin, Chris Sim, Anu Tayal
0207 071 4300
Patrick d’Ancona, Chris McMahon, Andrew Benbow
020 7920 2358