Tower Resources Announces Update on Namibia and Uganda
Tower Resources plc provides the following update on its exploration activities in Namibia and Uganda. In Namibia seismic interpretation has confirmed the presence of giant structures which could contain 10 billion barrels, unrisked, from three prospects. In Uganda processing and interpretation of seismic is continuing and a well is being planned before the end of 2008.
Namibia: Seismic Interpretation Completed
Tower Resources announces that Arcadia Petroleum Limited, as operator of License 0010 in northern offshore Namibia, in which Tower retains a 15% carried interest, has completed the interpretation program subsequent to the 2-D seismic acquisition survey shot in September 2007. The results confirm the presence of giant structures and indicate a significant probability that these would be oil bearing. Arcadia has calculated that, on a heavily discounted basis for reservoir parameters which contribute to volume, reserve potential is of the order of 10 billion barrels in three giant prospects. Large volumes of associated gas would also be present. These volumes have not been further discounted for exploration risk, however, the AVO (Amplitude Variation with Offset) analysis and geological modeling has been very rigorous providing significant comfort that the chance of success is favorable in terms of global success rates. A presentation has today been posted on the Tower website which provides pictorial seismic and AVO data which supports these exciting conclusions.
The main factors underlying the interpretation are as follows:
Future plans are being finalized for the next year to significantly increase seismic coverage over the three large prospects with a view to drilling a first well within the next two years.
Processing and interpretation of the Uganda seismic is continuing and should be complete by the end of May. Current conclusions point to primary targets within sediments up to 1500 meters thick which are broadly analogous to the shallow potential currently the subject of intense exploration in northern Block 2 and Block 1 immediately to the south of Tower's Block 5. It has been announced this week that Tullow Oil has discovered oil and gas in its Taitai-1 well near Butiaba. Planning and preparations are geared to Tower drilling its first well in Block 5 before the end of 2008. A more detailed update will be provided once remaining interpretation work is completed. The reference presentation provides new information about the seismic interpretation work to date.
Tower has entered into discussions with the Tanzania Petroleum Development Corporation with a view to agreeing a Production Sharing Agreement for the frontier Exploration Area consisting of Lakes Eyasi-Wembere, Manyara and Natron.
Tower is intending to give an up to date presentation of its operations to the "Oilbarrel" forum on 22nd May 2008.
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