Tower Reports on African Projects

Tower Resources plc, which has exploration licenses in Uganda and Namibia, on Tuesday released an update on its African projects.

Tower acquired the assets in a merger with Neptune Petroleum Limited that was approved by shareholders early this year. The company reports that it has made good progress with technical evaluation work in both Uganda and Namibia, enhancing the potential of both assets.

In Uganda, a detailed interpretation of gravity-magnetics (G-M) survey data previously recorded across Tower's Block EA5 has been completed, along with a geochemical study to assess basin maturity. The results are very encouraging, indicating sediments up to 3.5 kilometers thick within the graben area of EA5, which should be mature for hydrocarbon generation below a depth of approximately 2,000 meters. Additional G-M data is planned to be acquired during the forthcoming dry season (September to October) to supplement the existing database. However, the results to date have offered sufficient confidence for farmout activities to begin.

Tower’s board believes that conditions for oil generation and entrapment in permeable reservoirs in Block 5 are similar to those in Block 2, where the recently publicized oil discoveries of the Hardman-Tullow oil consortium are located, about 100 miles (160 km) southwest of Tower's Block 5 along the same Ugandan rift trend. Testing of the Waraga-1 discovery well in Block 2 has just been completed, with the well producing at cumulative rates in excess of 12,000 bopd over three intervals.

In Namibia, detailed interpretation of almost 10,000 kilometers of purchased 2D seismic data across the license area (Blocks 1910A, 1911 and 2011A) has been completed. A geochemical study to assess source rock maturity and a sea surface oil seeps survey, by satellite imaging, are nearing completion. The seismic interpretation results are most encouraging, identifying numerous leads in several geological settings. Many of the structures identified are of commercial significance, with a few structures capable of containing prospective resources ranging in the order of 1,000 mmb of recoverable oil if hydrocarbons are present. More work is required to assess the exploration risk of the various leads, including detailed seismic reprocessing and analysis to more rigorously investigate the significance of hydrocarbon indicators highlighted by the interpretation to date. Farm-out initiatives will be undertaken once this work is complete.

Further updates will be provided to the market as the farmout campaigns in Uganda and Namibia proceed.