Tower Resources Interim Results for the six months ended 30 June 2010

abarrelfull wrote on 14 Oct 2010 13:58
Tags: namibia results tower uganda upstream

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Tower Resources plc, the oil and gas exploration company with interests in sub-Saharan Africa, principally in Namibia and Uganda, has today announced interim results for the six months ended 30 June 2010.

The year to date has seen some important and positive developments:

Namibia – Licence 0010
A 1580 sq km 3-D seismic programme in Namibia Licence 0010 over the Delta prospect has been completed and data quality is excellent
An independent Competent Persons Report ("CPR") has confirmed the potential of Licence 0010 in three simple large structures, Alpha, Gamma and Delta
The CPR estimates that a firm prospect at one geological level of Delta has a 26% chance of discovering 2.4 billion boe recoverable and, in a secondary lead, an 8% chance of discovering 2.1 billion boe recoverable
Leads in Alpha and Gamma have estimated unrisked prospective resources of 2.6 billion boe recoverable
Total EMV for the Tower 15% share of Licence 0010 has been estimated as US$696 million (£.44/share)
A first well in Namibia is on target for early 2012
Uganda – Licence EA5
Interpretation of all well and Licence data points to a working petroleum system in EA5 which makes further exploration attractive
The company drilled Avivi-1, its second Uganda well in EA5 as a dry hole
The Company has entered the 3rd Exploration Period to drill a third well
An aero gravity gradiometry survey has been completed over the whole of EA5 and early interpretation has revealed some possible significant prospects
The Company reported a loss for the period of $821,099 (first half 2009 $264,789).

Tower Resources Executive Chairman, Peter Kingston, commented:

"The completion of the 3-D seismic programme in Namibia is an important milestone in the exploration of this exciting venture. The Tower Board is delighted that independent experts have confirmed the world class potential of the prospects and the reasonable chance of being successful with the first well. A well may now be drilled within the next 18 months. I would like to thank all of those loyal shareholders who have shared the Tower Board’s enthusiasm for the Namibia venture and are now within sight of seeing the outcome. Uganda still has significant potential value for shareholders and recent survey results are very encouraging.

Five years ago, Tower Resources acquired two Licences in sub-Saharan Africa and each still has potential for significant future success. The Namibia venture remains one of the most exciting exploration programmes that I have experienced"

Interim Results for the six months ended 30 June 2010

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