Global Petroleum strikes deal with Tower Resources

Oil company Global Petroleum has signed an agreement with Tower Resources whereby Global will have a continuing option to participate in the Uganda project while having no current obligation to contribute to ongoing expenditure.Global has been granted the right to convert its investment in the project thus far into a quarter share in Uganda Licence EA5. The conversion option will last 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.