Uganda - Mvule-1 Exploration Well Completion (9459X)
23 February 2012 - 6:01PM
UK Regulatory
TIDMTRP
RNS Number : 9459X
Tower Resources PLC
23 February 2012
PRESS RELEASE 23 February 2012
Tower Resources plc
("Tower" or the "Company")
Uganda - Mvule-1 Exploration Well Completion
Tower Resources plc ("Tower"), LN: TRP, the AIM listed company
with exploration assets in offshore Namibia and onshore Uganda,
wishes to advise that operations on the Mvule-1 exploration well in
Uganda Licence EA5 have been completed. The well reached its total
depth at 590 metres - basement was penetrated at 576 metres. No
significant hydrocarbon shows were encountered over the zone of
interest and electric wireline logging and fluid sampling confirmed
that the well was water bearing. The well is now being plugged and
abandoned.
Mvule-1 was the final well commitment on EA5 and the final
Exploration period ends on 26(th) March 2012. The Company's
wholly-owned subsidiary Neptune Petroleum (Uganda) Limited
("Neptune Uganda") will now complete its site restoration
commitments in line with government regulations.
Tower's CEO, Peter Kingston, commented: "It is a great
disappointment that the final commitment well in EA5 was
unsuccessful, for the Tower Board, Tower's shareholders, the
committed staff of Neptune Uganda and the people of West Nile who
have been so supportive over the past six years. However, while I
believe that the largest structures have now been tested, I also
believe that the generation of oil has been established and there
remains potential for oil discoveries in West Nile sometime in the
future. The Tower Board will continue to review future
opportunities in the region."
Tower's Chairman, Jeremy Asher, added: "We are now ready to
focus on our highly attractive position in Namibia, despite this
frustrating outcome in Uganda. The GBP5.41m placing and GBP600,000
SEDA drawdown, announced on 9(th) February 2012, strengthened
Tower's financial base both to deal with this eventuality, and to
provide a solid position from which to move forward. The
exploration well on our Namibian license, currently planned for
2013, will test five targets aggregating over 9 billion barrels of
recoverable reserves. Tower has a fully carried 15% interest in the
well and the operator, Arcadia, is currently in advanced
discussions regarding a farm-out."
Tower Resources PLC holds interests in licenses in three areas:
Namibia, Uganda and Western Sahara.
-- In Namibia, Tower holds a 15% interest in license 0010
comprising three offshore blocks covering 12,000 km(2) . Tower is
fully carried by operator Arcadia for the current commitment well
and a further optional well on the license. The license contains
three large structures, of which the Delta structure may contain
9.25 billion barrels of gross unrisked recoverable resources,
according to the Competent Person's Report issued in June 2011. The
two largest targets within the Delta structure have economic
chances of success of 31% and 19% respectively, and their risked
EMV10s (net to Tower) are $744 million and $776 million
respectively.
-- In Uganda, Tower holds a 100% interest in license EA-5 as
detailed above, which it proposes to relinquish at the end of the
current exploration period on 26(th) March 2012. The intangible
exploration and evaluation assets and goodwill attributable to the
EA-5 license will be written off.
-- In Western Sahara, Tower holds a 50% working interest in
three licence blocks in the Saharawi Arab Democratic Republic
("SADR"). The Imlili Block covers approximately 16,965 km(2) in
water depths of between 0 to 150 metres, and lies offshore from the
very large onshore Bojador Block (44,298 km(2) ) and east of the
offshore Guelta Block (15,760 km(2) ), Wessex Exploration PLC holds
the remaining 50% working interest and is operator in all three
blocks.
In accordance with AIM guidelines, Peter Kingston, who is a
petroleum reservoir engineer with over 40 years experience in
technical, executive and advisory roles in the oil exploration and
production industry, and is CEO of the Company, is the qualified
person that has reviewed and approved the technical information
contained in this announcement.
Contacts:
Northland Capital Partners Limited (Nominated
Adviser and Joint Broker)
Gavin Burnell, Edward Hutton
John-Henry Wicks / Alice Lane (Broking) 0207 796 8800
M Communications
Patrick d'Ancona, Chris McMahon, Andrew
Benbow 020 7920 2358
This information is provided by RNS
The company news service from the London Stock Exchange
END
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