Namibia Farmout

20 Sep 2007 07:02

Tower Resources PLC20 September 2007 PRESS RELEASE20 September 2007 TOWER RESOURCES: APPROVAL OF NAMIBIA FARMOUT Tower Resources ("Tower"), the AIM listed oil and gas exploration company, hasbeen advised that the Minister of Mines and Energy of the Republic of Namibiahas approved the farmout by Tower's wholly-owned subsidiary Neptune Petroleum(Namibia) Limited ("Neptune") of an 85% interest in its Licence, coveringoffshore blocks 1910A, 1911 and 2011A, to Arcadia Petroleum Limited (Arcadia).The Minister has also approved the transfer of the Operatorship of the Licenceto Arcadia. Under the terms of the farmout, Arcadia has committed to fully fund a programmeof activity in four parts which includes: * cost associated with shooting the recently completed 2-Dimensional seismic programme and further costs arising from its interpretation; * shooting and interpreting a 3-Dimensional seismic programme, presently contemplated in early 2008; * an exploration commitment well; * a second well which might be an appraisal well or a second exploration well. Arcadia has the option to withdraw from its commitment at the end of each ofthese four stages of operation or to assign all or part of its interest to athird party agreeing to meet the funding commitment. In the case of withdrawaland failure to assign, the full 85% interest will revert to Neptune. Arcadiawill also reimburse 85% of certain historic costs to Tower. Arcadia Petroleum Limited is a substantial trader of oil and related products.They bring considerable financial strength to the Licence as well as access tovery relevant expertise in exploration, development and shipment of oil andnatural gas. Peter Kingston, Tower's Chairman has welcomed the introduction of such a strongpartner. "Arcadia shares Tower's belief that the Licence has the potential tocontain giant gas fields. In particular, the discovery of large volumes of gascan be developed effectively given Arcadia's financial strength and its accessto appropriate technology. Activity now promises to progress quickly and thepotential of the Licence is genuinely exciting." End For further information, please contact: Tower Resources plc www.towerresources.co.ukPeter Kingston, Chairman 07802 804852 Blue Oar SecuritiesRhodri Cruwys 020 7448 4400 Aquila Financial Limited www.aquila-financial.comPeter Reilly 020 7202 2600Yvonne Fraser Notes to Editors Tower Resources Plc is an AIM-listed, independent oil and gas explorationcompany based in London. The company is focused on sub-Saharan Africa, holding 100% exploration licencesin 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 andonshore block 5 in Northern Uganda. This information is provided by RNS The company news service from the London Stock Exchange