Last checked at 2 Jul 2013 07:00
2 July 2013
Tower Resources plc
Update to Competent Persons Report ("CPR") by Oilfield International
Increased chance of oil in upcoming Namibian well
Tower Resources plc ("Tower" or the "Company"), (TRP.L, TRP LN), the AIM listed Africa-focussed oil and gas exploration company, is pleased to provide the following independent update to the Competent Persons Report ("CPR") compiled by Oilfield International ("OIL") on 29 June 2011 with respect to the company's 30% working interest in Namibia Petroleum Exploration Licence 0010 (PEL 0010) held through Neptune Petroleum (Namibia) Ltd.
The CPR update was provided by Oilfield International in view of the significance of the following exploration drilling results within the Walvis Basin, offshore Namibia, and the potential impact on the prospectivity of PEL 0010:
1. Tapir South-1: Drilled by Chariot Oil & Gas plc on Block-1811A between March and May 2012 and encountered over 200 metres of high quality reservoir in the Cretaceous and Carbonate sequences.
2. Wingat-1: Drilled by HRT Participações em Petróleo S.A on Block-2112A between March and May 2013 and encountered two oil generating source rocks within the Cretaceous sequence and several poorly developed reservoir sequences from which oil samples with a gravity of 38o to 42o API were extracted.
Highlights:
§ Potential for oil versus gas:
The probability of encountering light oil relative to gas in the Welwitschia prospect has increased from 50% to 65% and in the Alpha, Gamma and other inter-structural prospects has increased from 45% to 65%. This assessment is primarily driven by the discovery of light oil in the Wingat-1 well and the presence of abundant source rock.
Fluid Type | CPR 2011 | UPDATE to CPR (June 2013) | ||
Welwitschia (previously "Delta") | Alpha, Gamma and Inter-structural Areas | Welwitschia (previously "Delta") | Alpha, Gamma and Inter-structural Areas | |
Dry Gas | 10% | 11% | 10% | 11% |
Gas Condensate | 40% | 44% | 25% | 24% |
Volatile Oil | 50% | 45% | 65% | 65% |
Total | 100% | 100% | 100% | 100% |
§ Geological chance of success ("GCos"):
The GCoS remains unchanged as the improved probability of source rock inferred from the Wingat-1 well result is confirmation of the potential for oil generation.
§ Prospective Resources estimate:
There is insufficient evidence from the Tapir South-1 and Wingat-1 well data to make an inference with respect to the reservoir quality of the Welwitschia prospect and therefore the volumetric estimates of the prospective resources of PEL 0010 remain unchanged.
Net Attributable Best Estimate | Aggregate Net Best Est | ECoS* | Net | |||
Liquids phase | VO1 | GC2 | DG3 | Risked | ||
mmstb | mmstb | mmstb | mmstb | % | mmstb | |
Maastrichtian | 634 | 76 | 6 | 432 | 31.4 | 136 |
Palaeocene | 988 | 71 | 8 | 661 | 18.7 | 124 |
Upper Campanian | 125 | 16 | 1 | 85 | 8.7 | 7 |
Campanian Wedge | 327 | 43 | 3 | 223 | 9.3 | 21 |
Albian | 564 | 144 | 56 | 403 | 8.0 | 32 |
Total Welwitschia | 2638 | 350 | 23 | 1805 | 320 | |
Alpha Palaeocene | 650 | 66 | 5 | 439 | 9.3 | 41 |
Gamma Palaeocene | 213 | 21 | 2 | 144 | 11.8 | 17 |
3501 | 437 | 30 | 2387 | 377 | ||
Gas phase | BCF | BCF | BCF | BCF | ECoS | BCF |
Maastrichtian | 968 | 2300 | 2340 | 1438 | 31.4 | 452 |
Palaeocene | 1458 | 3380 | 3380 | 2131 | 18.7 | 398 |
Upper Campanian | 192 | 432 | 458 | 279 | 8.7 | 24 |
Campanian Wedge | 502 | 1166 | 1190 | 737 | 9.3 | 69 |
Albian | 1014 | 2280 | 2460 | 1475 | 8.0 | 118 |
Total Welwitschia | 4134 | 9558 | 9828 | 6059 | 1061 | |
Alpha Palaeocene | 1000 | 2440 | 2280 | 1486 | 9.3 | 138 |
Gamma Palaeocene | 326 | 800 | 748 | 486 | 11.8 | 57 |
5460 | 12798 | 12856 | 8032 | 1256 | ||
Total Welwitschia (MMBOE)† | 3327 | 1943 | 1661 | 2814 | 496 | |
Total PEL0010 (MMBOE) | 4411 | 2570 | 2173 | 3726 | 587 | |
*ECoS is derived from the GCoS multiplied by the economic probability
1Volatile oil case
2Gas condensate case
3Dry gas case
†MMBOE denotes millions barrels of oil equivalent
Commenting on the CPR update Graeme Thomson, CEO, stated: "Oilfield International's view of an increased probability of the Welwitschia and surrounding prospects containing volatile oil is welcome news and is aligned with our positive view of the results of the Wingat-1 well communicated to the market on 22 May 2013. As a result of the increased probability of a volatile oil case, their best estimate of net risked prospective resources being targeted with the Welwitschia-1 well, scheduled for Q1 2014, has increased from 458mmboe to 496mmboe. We believe that the shareholders of Tower Resources are exposed to one of the highest impact exploration wells scheduled for 2014 in sub-Saharan Africa".
A copy of the full CPR update from Oilfield International is available on the company website at www.toweresources.co.uk.
In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies, the information contained in this announcement has been reviewed and signed off by the Vice President - New Ventures, Mr. Nigel Quinton BA, MA, FGS, who has over 30 years experience as a geoscientist. He has compiled, read and approved the technical disclosure in this regulatory announcement. The technical disclosure in this announcement complies with the SPE/WPC standard.
Contacts
Tower Resources
Jeremy Asher (Chairman)Graeme Thomson (CEO)
Andrew Matharu (VP - Corporate Affairs)+44 20 7253 6639
Peel Hunt LLP
(Nominated Adviser and Joint Broker)
Richard Crichton/Charles Batten+44 20 7418 8900
GMP Securities Europe LLP (Joint Broker)
Rob Collins/Liz Williamson+44 20 7647 2800
M Communications
Patrick d'Ancona, Chris McMahon+44 20 7920 2358
Notes:
Oilfield International is a privately owned energy consultancy founded in 1990 that has advised on oil and gas projects in over 40 countries. OIL's shareholders, management and staff are, and always have been, independent of shareholders, management and staff of Neptune Petroleum (Namibia) Ltd and Tower Resources Plc.
This CPR Update was produced by three consultants: Mr David Curia, Mr Victor Ploszkiewicz and Mr Tim Lines. All hold degrees in geoscience or petroleum engineering. Messrs. Curia and Ploszkiewicz (both based in Buenos Aires) have extensive exploration experience on both sides of the South Atlantic rift.
Mr David Curia has 30 years' experience in geophysical interpretation and 3D modelling. He holds a M.Sc. in Geology, a M.Sc. in Mathematics from the University of Buenos Aires, and a "Post-Degree" in Geophysics (12 geophysical subjects examined over 18 months, without a doctoral thesis) from the University of Mendoza. He has held lectureships in Numerical Analysis and in Geostatistics. He is the author of over 20 papers for a.o. the European Association of Geoscientists and Engineers and the American Association of Petroleum Geologists.
Mr Victor Ploszkiewicz has 38 years' experience in geological interpretation and holds a M.Sc. in geology from the University of Buenos Aires. He was visiting professor in geology at the University of Mendoza. He is author of over ten research papers for a.o. the Society of Exploration Geophysics and the American Association of Petroleum Geologists. He is a Member of: The American Association of Petroleum Geologists (M.AAPG); The Society of Exploration Geophysicists (M.SEG); The Asociacion Argentina de Geologos y Geofisicos Petroleros (M.AAGyGP); and The Asociacion Geologica Argentina (M.AGA).
Mr Tim Lines has 31 years' experience in petroleum engineering and economic evaluation. He holds a B.Sc. in Chemistry from Bristol University, a M.Sc. in Petroleum Engineering from Imperial College and an MBA from Cranfield University. He is a Chartered Engineer registered with the UK Engineering Council since 1990 and has been Vice Chairman of the Society of Petroleum Engineers London since 2000. He is a Fellow of the Geological Society (FGS), a member of the Institution of Gas Engineers (M.IGEM), the Energy Institute (M.EI) and of the Institute of Materials, Minerals and Mining UK. He has the Freedom of the City of London as a Liveryman of the Worshipful Company of Fuellers.