Tower Resources in talks with oil major over Namibia blocks

(Sharecast News) - Africa-focussed oil and gas company Tower Resources updated the market on the latest activity on blocks 1910A, 1911 and 1912B in Namibia on Thursday.
The AIM-traded firm said it had disclosed technical and commercial information to an unnamed major international oil company, in order to explore the potential to co-operate in respect of its Namibian blocks.

That followed preliminary discussions initiated by that company, the board said, and held earlier in the summer.

"This process is at a very early stage, and may not lead to any agreement," said Tower Resources chairman and chief executive officer Jeremy Asher.

"However, it does provide a timely reminder that, in addition to our Cameroon appraisal and development project, the company has two extremely attractive exploration opportunities in Namibia and South Africa."

Asher said the company's Namibian blocks, in which the firm had an 80% interest as operator, included two giant four-way dip closures in the west and four large structures in the Dolphin Graben, where the 1994 Norsk Hydro well 1911/15-1 encountered three source rock intervals, and recovered oil from Albian carbonate core samples.

"Our Algoa-Gamtoos license in South Africa, operated by NewAge, where our interest is 50%, adjoins Total's license where it made its recent 1-billion boe Brulpadda gas-condensate discovery in the Outeniqua basin, and that Algoa-Gamtoos license includes a 364 million boe prospect identified by NewAge in the same Outeniqua basin."