Tower Resources plc (‘Tower’), LN: TRP, the AIM listed oil and gas exploration company, is pleased to announce that, all conditions relating to the farmout agreement between Arcadia Expro Namibia (Pty) Ltd (‘Arcadia’) and Repsol Exploration (Namibia) Pty Ltd (‘Repsol’) and with Tower’s wholly owned subsidiary, Neptune Petroleum (Namibia) Limited (‘Neptune’), to double Neptune’s interest in Licence 0010, have now been completed.
Under the terms of the farmout agreement, Neptune has now released escrow funds of approximately US$5.3 million (£3.3 million) to reimburse Arcadia for 30% of Arcadia’s past costs on the Licence and Neptune will assume 30% of costs from 1 July 2012.
With the transactions now completed, Repsol has assumed operatorship of Licence 0010 and the partners’ interests are Repsol 44%, Tower 30% and Arcadia 26%.
Tower’s CEO, Graeme Thomson, commented:
‘We are pleased that the agreements have now been completed. We look forward to updating the market as preparations are progressively made to drill the Welwitschia well on the multi-billion barrel prospect, formerly identified as the Delta structure. Planning for the well is now able to accelerate. Tower’s CPR has identified five potential reservoirs within the structure. Tower’s potential net risked resource is in excess of 540 million boe.’
Tower’s Chairman, Jeremy Asher, added:
‘2013 will be a very interesting year for us, with HRT’s first well in their Namibian drilling programme commencing in the first quarter and their further wells over the coming months. While we have not yet ruled out commencing a well this year ourselves, the partners in Licence 0010 see many advantages to waiting until early 2014, and are certainly disinclined to pay a premium and hurry preparations for a complex and important well on such an especially attractive prospect. We have over $4 million of cash on hand and no immediate funding requirements. This also allows us to develop some other new business opportunities that we have in the pipeline.’
Jeremy Asher (Chairman)
Graeme Thomson (CEO)
+44 20 7253 6639
Northland Capital Partners Limited
(Nominated Adviser and Joint Broker)
Gavin Burnell / Edward Hutton
John Howes / Alice Lane (Broking)
+44 20 7796 8800
Investec (Joint Broker)
Ben Colegrave, Chris Sim
+44 20 759 74000
Patrick d’Ancona, Chris McMahon, Andrew Benbow
+44 20 7920 2358
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