Tower Resources Regulatory News (TRP)

18 Jul 2006 07:00

Tower Resources PLC18 July 2006 Tower Resources plc Press Release For immediate release: 18 July, 2006 Tower Resources plc Update on Company Activities Tower Resources plc ("Tower" or "the Company") (AIM code: TRP), the AIM-listedindependent oil and gas exploration company with exploration licences in Ugandaand Namibia, is pleased to provide an update on the Company's African projects.These assets were acquired by Tower in a merger with Neptune Petroleum Limitedapproved by shareholders on 16 January, 2006. We are pleased to report that goodprogress has been made with technical evaluation work in both Uganda andNamibia, enhancing the potential of both assets. In Uganda, a detailed interpretation of gravity-magnetics ("G-M") survey datapreviously recorded across Tower's Block EA5 has been completed, along with ageochemical study to assess basin maturity. The results are very encouraging,indicating sediments up to 3.5 km thick within the graben area of EA5, whichshould be mature for hydrocarbon generation below a depth of approximately 2,000metres. Additional G-M data is planned to be acquired during the forthcoming dryseason (September-October) to supplement the existing database. However theresults to date have offered sufficient confidence for farmout activities tobegin. The Board of Tower believe that conditions for oil generation and entrapment inpermeable reservoirs in Block 5 are similar to those in Block 2, where therecently-publicised oil discoveries of the Hardman-Tullow oil consortium arelocated, about 100 miles (160 km) south-west of Tower's Block 5 along the sameUgandan rift trend. Testing of the Waraga-1 discovery well in Block 2 has justbeen completed with the well producing at cumulative rates in excess of 12,000bopd over three intervals. In Namibia, detailed interpretation of almost 10,000 km of purchased 2D seismicdata across the licence area (Blocks 1910A, 1911 and 2011A) has been completed.A geochemical study to assess source rock maturity and a sea surface oil seepssurvey by satellite imaging are nearing completion. The seismic interpretationresults are most encouraging identifying numerous leads in several geologicalsettings. Many of the structures identified are of commercial significance witha few structures capable of containing prospective resources ranging in theorder of 1,000 mmb of recoverable oil, if hydrocarbons are present. More work isrequired to assess the exploration risk of the various leads including detailedseismic reprocessing and analysis to more rigorously investigate thesignificance of hydrocarbon indicators highlighted by the interpretation todate. Farm-out initiatives will be undertaken once this work is complete. Further updates will be provided to the market as the farmout campaigns inUganda and Namibia proceed. An updated version of Tower's investor presentation will be posted on theCompany's website (www.towerresources.co.uk) at the same time as this release. For further information, please contact: Tower Resources plcPeter Kingston, Chairman 01373 837223Russell Langusch, Executive Director 07840 523771 Corporate SynergyOliver Cairns 020 7448 4400 Aquila Financial LimitedPeter Reilly/ Ross Bethell 020 7202 2601tower@aquila-financial.comwww.aquila-financial.com For the purposes of AIM Rule 11, this announcement has been reviewed by TowerResources' Executive Director, Russell Langusch BE (Hons) M Eng Sc, a PetroleumEngineer of more than 30 years standing and a member of the SPE. Tower Resources plc5 Charterhouse SquareLondon EC1M 6PXTel: +44 207 867 8600 This information is provided by RNS The company news service from the London Stock Exchange