Repsol Farms-In to Namibia License 0010

The Namibian Competition Commission and the Ministry of Mines and Energy have granted approval for the farmout agreements between Arcadia Expro Namibia and Repsol Exploration and with Tower Resources' wholly-owned subsidiary, Neptune Petroleum Limited, to double its interest in License 0010. The license is situated offshore Namibia, West Africa.

With these approvals, Repsol will become operator of the license and the partners’ interests will be Repsol, 44 percent; Tower, 33 percent; and Arcadia, 26 percent.

The Ministry of Mines and Energy also granted approval to extend the Second Renewal Exploration Period for the license by a year to Aug. 22, 2014 and the optional third renewal exploration period by a year to Aug. 22, 2016.

"We are pleased to have received the approvals required for Repsol to join us as a partner and operator in License 0010," stated Graeme Thomson, Tower's CEO, in a statement. "It [Repsol] is one of the foremost experts in West African offshore exploration."

The operator plans to drill the Welwitschia well on the Delta prospect in the license in 2014. It is expected that the tender and procurement processes for the long-lead items could take about a year. Repsol is likely to use the Rowan Renaissance (deepwater drillship) to the drill the well in March 2014.