Avivi-1 Well Slated for Feb Spud in Uganda
During the quarter, Tower advised that it has signed a contract with Oil & Gas Exploration Company Cracow Limited ("OGEC") for a land rig to drill the Avivi-1 exploration well in Exploration Area 5 ("EA5"), Uganda. Drilling will begin after full environmental approval and consent to drill has been received and Tower is confident that this can be achieved to meet an early February 2010 spud date.
The OGEC IDECO IRI-750 rig, which is in Uganda, has been engaged in a substantial and effective recent drilling program in Licenses EA1 and EA2 which included 15 wells and all were mechanically successful.
The Avivi-1 well has a primary stratigraphic target interval below 702m and a secondary target interval which is immediately above expected basement at a depth of 833m. The higher interval is targeted to encounter high quality fluvial sandstones, similar to those found in the successful wells in License EA1, adjacent to EA5, but which were absent in the first exploration well, Iti-1. The deeper prospective interval may have alluvial sandstones similar to those encountered in the basal reservoir at Iti-1, but of improved quality. It is anticipated that the well will take about two weeks to drill to total depth.
As previously advised, Global Petroleum has elected to maintain its option to earn a 25% interest in EA5 by funding 25% of the cost of the second exploration well.