Last checked at 21 Sep 2009 14:52
PRESS RELEASE
21 September 2009
Tower Resources revises Iti-1 conclusions
Tower Resources plc ("Tower" or the "Company")
Tower Resources is pleased to announce that it has concluded its detailed evaluation of information from the Iti-1 well. Analyses and interpretations have been carried out by independent experts and specialists using relevant laboratories in the UK. The overall findings of the re-evaluation is that the Iti-1 well found 15-20 metres of clean reservoir sands, with significant potential to contain oil just above basement between 540 and 575 meters. This conclusion would need to be verified by a well test, and given the high cost of re-entering the existing well it is likely that the company will instead drill another well on the Iti structure at a later date. However, the company's first priority, and commitment under its work programme, is to drill a second exploration well, and the company is still considering the best location for this second well in light of the information that the Iti-1 well has provided. The company hopes, subject to Government approval, to drill this second well in early 2010, with a target of February.
The following provides a summary of conclusions drawn to date from the re-assessment.
2. Detailed inspection of wireline pressure data, after undertaking quality control of the raw data and re-evaluation of wireline logs indicate that the basal reservoir could be oil bearing and is separated from the overlying sediments which are clearly sealing and water bearing.
Detailed discussions with the Government of Uganda have commenced to jointly agree the significance of these updated results. The immediate work programme will focus on evaluating prospective well locations and planning for drilling a second exploration well early in 2010. A further update will be provided to shareholders once a firm forward programme has been agreed with the Government of Uganda, hopefully in the second half of October. A follow up well on the Iti structure will be considered in due course to confirm a working hydrocarbon system within the structure.
Peter Kingston commented; "We were surprised and disappointed at the initial findings of the Iti-1 well, which we originally reported in June, so we are naturally pleased that a much more comprehensive evaluation has indicated significant potential for hydrocarbons in the Iti structure. The outcome of the evaluation also provides us with great encouragement for the rest of Exploration Area 5."
In accordance with AIM guidelines, Peter Kingston, who is a petroleum reservoir engineer with over 40 years experience in technical, executive and advisory roles in the oil exploration and production industry, and is Executive Chairman of the Company, is the qualified person that has reviewed and approved the technical information contained in this announcement.
Contacts:
| Tower Resources plc | www.towerresources.co.uk |
| Peter Kingston, Chairman | 07802 804852 |
| Astaire Securities (NOMAD and Broker) | |
| Lindsay Mair/Jerry Keen | 020 7448 4400 |
| Aquila Financial Limited (PR) | www.aquila-financial.com |
| Peter Reilly | 0118 979 4100 |