Last checked at 15 May 2008 07:00
15 May 2008
Tower Resources Plc
("Tower" or "the Company")
Namibia and Uganda Update
Tower Resources plc is pleased to provide the following update on its exploration activities in Namibia and Uganda.
In Namibia seismic interpretation has confirmed the presence of giant structures which could contain 10 billion barrels, unrisked, from three prospects. In Uganda processing and interpretation of seismic is continuing and a well is being planned before the end of 2008.
Namibia: Seismic Interpretation Completed
Tower Resources announces that Arcadia Petroleum Limited, as operator of Licence 0010 in northern offshore Namibia, in which Tower retains a 15% carried interest, has completed the interpretation programme subsequent to the 2-D seismic acquisition survey shot in September 2007. The results confirm the presence of giant structures and indicate a significant probability that these would be oil bearing. Arcadia has calculated that, on a heavily discounted basis for reservoir parameters which contribute to volume, reserve potential is of the order of 10 billion barrels in three giant prospects. Large volumes of associated gas would also be present. These volumes have not been further discounted for exploration risk, however, the AVO (Amplitude Variation with Offset) analysis and geological modelling has been very rigorous providing significant comfort that the chance of success is favourable in terms of global success rates. A presentation has today been posted on the Tower website which provides pictorial seismic and AVO data which supports these exciting conclusions.
The main factors underlying the interpretation are as follows:
Four way dip closure has been confirmed on the Alpha structure indicating a maximum area of more than 600 square kilometres
Four way dip closure is indicated on the Gamma structure which, if confirmed, would define a prospect having an area of more than 1700 square kilometres
AVO analysis and geological modelling have pointed to three sandstone reservoirs up to 50 metres thick which correlate with sandstones in the two exploration wells drilled in the 1990's
AVO analysis has concluded that there are strong hydrocarbon indications and good quality reservoirs in conjunction with the prospective structures but no hydrocarbon indications at the locations of the two unsuccessful wells
Reservoir sands are interpreted to be stacked channel sands having laterally variable reservoir characteristics but high quality over significant areas.
Future plans are being finalised for the next year to significantly increase seismic coverage over the three large prospects with a view to drilling a first well within the next two years.
Uganda: update
Processing and interpretation of the Uganda seismic is continuing and should be complete by the end of May. Current conclusions point to primary targets within sediments up to 1500 metres thick which are broadly analogous to the shallow potential currently the subject of intense exploration in northern Block 2 and Block 1 immediately to the south of Tower's Block 5. It has been announced this week that Tullow Oil has discovered oil and gas in its Taitai-1 well near Butiaba. Planning and preparations are geared to Tower drilling its first well in Block 5 before the end of 2008. A more detailed update will be provided once remaining interpretation work is completed. The reference presentation provides new information about the seismic interpretation work to date.
Tanzania
Tower has entered into discussions with the Tanzania Petroleum Development Corporation with a view to agreeing a Production Sharing Agreement for the frontier Exploration Area consisting of Lakes Eyasi-Wembere, Manyara and Natron.
Tower is intending to give an up to date presentation of its operations to the "Oilbarrel" forum on 22nd May 2008.
Peter Kingston, Tower's Executive Chairman stated that:
"The exciting conclusions of the Namibia interpretation work have added another world class dimension to the Company's prospects. The Uganda Licence is being confirmed as a prospective venture and Tanzania begins to broaden the portfolio. The next two years promise to be a fascinating period of potentially company-making activity".
For further information, please contact:
| Tower Resources plc | www.towerresources.co.uk |
| Peter Kingston – Executive Chairman | 07802 804852 |
| Blue Oar Securities | |
| Rhodri Cruwys / John Wilkes | 020 7448 4400 |
| Aquila Financial Limited | |
| Peter Reilly | 0118 979 4100 |
In accordance with AIM guidelines, James Webb, who is an Exploration Geologist having 38 years of experience in technical, executive and advisory roles in the oil exploration and production industry, and is Exploration Manager to the Company, is the qualified person that has reviewed and approved the technical information contained in this announcement.
Forward-Looking Statements
This regulatory news release contains estimates as to volumes based upon seismic and AVO data. These estimates are not necessarily representative of future production volumes. Seismic evaluation work is normally followed by exploratory drilling work and evaluation of drilling results is then used to update estimates. The reader is cautioned that assumptions used in the preparation of their estimates may prove to be incorrect. All such estimates involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Reservoir quality and quantity, seal, structural timing, hydrocarbon source issues, faulting, and the availability of any further 3D seismic data over the target are but a few of the many risk factors that typify each and every drilling prospect. Please refer to the Company's Admission Document available from the Company's web site for a list of risk factors. The Company's actual results could differ materially from those expressed in, or implied by, these estimates and, accordingly, no assurances can be given that any of the events anticipated by the estimates will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. With all drilling proposals, one is provided with the full range of potential return on investment: from nil (dry hole) to huge (high side estimate). All subsequent estimates, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the estimates contained in this news release are made as at the date of this news release. Investors are strongly advised to consult a qualified professional oil and gas industry advisor before making any investment decision.
Glossary
| ‘Unrisked’ | A statement or figure that does not include any discount for the probability of success. |
| | |
| ‘AVO’ | Amplitude Variation with Offset: A technique involving comparison of seismic data from more than one record point that when used in analysis adds credence to the likelihood that hydrocarbons may be present in possible reservoir horizons. |
Notes to Editors
Tower Resources Plc is an AIM-listed, independent oil and gas exploration company based in London.
The company is focused on sub-Saharan Africa, holding exploration licences in Namibia and Uganda through its two operating subsidiaries Neptune Petroleum (Namibia) Ltd and Neptune Petroleum (Uganda) Ltd.
The company's assets include; blocks 1910A, 1911 and 2011A offshore Namibia and onshore block 5 in Northern Uganda.