Tower Resources Notes Seismic Ops in Namibia, Uganda Licenses
Tower Resources provided an update on its current operations in each country, managed by wholly-owned subsidiaries Neptune Petroleum (Namibia) Limited and Neptune Petroleum (Uganda) Limited.
In License 0010, offshore Namibia, where Neptune Petroleum (Namibia) Limited has a 15% carried interest, interpretation of the 3-D seismic is well advanced with initial conclusions delivered from all of the specialist consultants. Clear structural closure, sustained reservoir thickness and direct hydrocarbon indicators - AVO anomalies and pock marks - have been confirmed at the main Maastrichtian prospect level. Additional potential is confirmed at the Palaeocene horizon (defined as a lead in the Competent Persons Report (CPR)) but also at two other formations deeper than the Maastrichtian. The very large structural closures are confirmed and, therefore, the indicated additional reservoir horizons substantially increase the resource upside potential.
Arcadia Petroleum Limited, operator of License 0010, which is funding Tower for the cost of the first well, is making progress with its program to put in place funding and to contract a deep water drilling rig with a view to drilling around the end of 2011. At present, there appear to be suitable rigs available during the target period. A CPR is currently being updated with a targeted publication early in June 2011.
A letter of intent in advance of a contract for the 2-D seismic program of 150-200 kms has been signed with TESLA-IMC International Limited and line clearance is expected to begin by late April. Completion is targeted for end June 2011, by which time a well location can be selected. A high density geochemical survey, conducted by GORE Geochemical Surveys, is also underway over the prospect area together with focused sampling around the two existing wells and an oil-bearing well in EA1. The Environmental Impact Assessment and early operational planning for a third well have begun. Now that the political uncertainty with respect to long term development planning in Uganda appears to have been resolved, a final phase of the farm out program has been initiated. The Tower Board has raised the additional equity capital required to undertake the seismic program on schedule and a well can still be drilled in October 2011, subject to rig availability. If the cost of seismic is subsequently met by a third party, the funds will be deployed on new projects.
Peter Kingston, Executive Chairman of Tower Resources, commented, "I am pleased to confirm that the first well in Namibia, to test the huge potential of the Delta prospect, remains a target within a year. The 3-D seismic interpretation has confirmed the 2-D seismic interpretation but has also opened up significant potential from additional reservoirs. I am also pleased that the Uganda seismic and well program is still on schedule."
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