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Tower Resources is an AIM-listed, London-based, independent oil and gas exploration company with a regional focus on sub-Saharan Africa. The company held 100 per cent licences in Namibia and Uganda, parts of which it has farmed out, through its two operating subsidiaries, Neptune Petroleum (Namibia) and Neptune Petroleum (Uganda).

Uganda is one of the exploration hotspots at the moment and Tower will be hoping that the current run of success experienced by other in-country explorers continues into its acreage. Namibia is less advanced but on the basis of technical work done so far some very large structures will be targeted for further investigation.


Onshore Block EA5 in northern Uganda extends over 6,000 sq kms and is at the northern end of the Albertine Graben. A regional gravity and magnetic survey has identified that Block EA5 contains one of the five identified sedimentary depocentres (or basins) within the Albertine Graben. EA5 contains the Rhino Camp Basin.


Tower believes that some considerable encouragement can be drawn from the significant discoveries, drilled by Hardman (which was taken over by Tullow) in Block 2, some 150 km to the south of Block 5 and the significant Kingfisher discovery further south in Block 3. Further appraisal of these discoveries is ongoing but they are multi-million barrel finds.


Furthermore, 200 km to the north of Block 5, the tertiary shales of the Muglad rift basin of Sudan have been shown to be a major source of oil in the Unity and Heglig fields. It would seem unlikely that the Rhino Camp Basin would, therefore, be devoid of potential source rocks.


There is considerable anecdotal evidence to support the seepage of oil to surface within the Licence and surveys are continuing to establish the physical evidence of this.


Tower is well advanced with its plans for this asset. An agreement with US group Orca Exploration provides for Orca to repay 83.33 per cent of past costs and to fund 83.33 per cent of future costs related to current seismic. Their share of seismic costs is capped at US$5 million based on the current planned size of the programme. Orca then has an option to participate in the two well commitment programme, becoming a 50 per cent licensee on making that commitment, providing 83.33 per cent of the cost of the two wells. There are agreed caps on Orcas share of the well funding - US$10 million for drilling costs and US$5 million for any testing operations.


The programme is to record 285 kilometres of 2D seismic (this is shallow, tertiary territory). Once prospective targets are identified it is planned to drill two wells in 2008.


In Namibia, Tower had 100 per cent of Blocks 1910A, 1911 and 2011A, offshore Namibia, which covers a vast area of approximately 22,000 sq kms in water depths ranging from 200 to 3,000 metres. This amounts to one block and two contiguous part blocks. This is real frontier territory and Towers plans are less advanced here than in Uganda.


These blocks are little drilled, although Norsk Hydro drilled two wells, both of which turned out to be dry holes. Tower has been looking elsewhere in the north of the licence.


Tower has concluded a farm out agreement with Arcadia Petroleum. Under the terms of the farm out agreement Tower retains a 15 per cent stake carried through a programme of 2D and 3D seismic and two wells. In the event that the farminee, or any assignee of their rights and obligations, opted not to pursue the full programme, the full licence interest would revert to Tower.


So far a 700 km programme of 2D seismic has been completed and will now be subject to AVO analysis. It is hoped that a further 3D seismic programme will be completed by the end of 2008. The structures involved are huge, possibly containing multi tcf prospects.

As things are moving on now, time for a quick recap in respect of Uganda.

Siesmic results due by end of Q1.

EA 5 PSA terms

The principal terms of the PSA, as amended are as follows:

The First Exploration Period ends on 27 March 2008. By this time, 200 kilometers of seismic must be acquired processed and interpreted. This will be satisfied by the acquisition of 300 kilometers of 2-D seismic in the last quarter of 2007.

Under the terms of the Second Exploration Period, minimum exploration of two wells and one contingent well is required to be drilled by 27 March 2010.

The Third Exploration Period ends on 27 March 2012. By this time an additional exploration well and one contingent well has to be drilled.

Cost recovery is permitted for up to 50% of the oil production after deduction of the Royalty. Carry forward provisions apply.

The Royalty ranges from 5% on volumes up to 2,500 bbls/day to 12.5% above 7,500 bbls/day.

The profit sharing percentage of the licensee decreases as production increases. The range is 53% for 0 5,000 bbls/day and 25% for production in excess of 40,000 bbls/day.

The Government of Uganda has a 20% back in right.

Terms of Orcas agreement with Tower Resources

The principal terms of the agreement are as follows:

The agreement is structured as an option with Tower to earn a 50% interest in EA 5.

In consideration for granting the option, Orca will fund 83.33% of certain back costs and a 2-D seismic programme of 300 kilometers, beginning in December 2007, subject to a maximum cost to the Company of US$5-6 million.

On completion of the interpretation of the seismic data expected during Q1 2008, Orca will have the exclusive right to acquire a 50% working licence interest in return for funding 83.33% of two exploration wells forecast to commence mid 2008. The carry is capped at a maximum cost to the Company of between US$10 million and US$15 million depending on whether the wells are tested.

In the event that Orca exercises its option to become a 50% partner, Tower will continue to remain operator under the licence for a period of three years. However, Orca will assume management responsibility for all drilling activities.

Orca has put a guarantee in place at the outset to cover US$15 million of expenditure.

http://www.orcaexploration.com/2007/Orca_2007_Q3.pdf

Uganda's Rift Valley

Some clarification of these leads will appear next week from Tower I believe.

VSA Capital Note

If anyone out there wants to buy, do so I should say.

Most likely hear results of Uganda early next week and possible activity into Namibia.

Both now prospective early drill targets if they can find rigs, their partners Orca and Arcadia Petroleum Limited both own rigs and are now the operators.

One to watch at least.

Something about Orca not having to commit till end of May I've heard. That would give us more time fiddling our thumbs on what must look like poorer prospects perhaps!

Concerned!

WE will know on Tuesday Rayrac, not a lot we can do in between.

As a matter of interest, have you looked at the Orca agreement?

It may shed some light on it, I'll find it and post it here.

Orca farm in announcement from August

Well there's nothing in there to account for the delay you are highlighting, what is your source?

I don't need to know who, so a generalisation will do or email me off board by clicking my screen name and use money am messenger.

Any comment you may have heard seems to fly in the face of the Reuters article which was published last week.

I am sure Peter Kingston will address such concerns either in the Prelims or at the AGM all of which are imminent

Tower are applying for licenses in Tanzania as below in this item found by xxnjr (TMF) for us,

http://www.tpdc-tz.com/PRESS%20RELEASE_TZ%20Closes%20Mini%20Round18.12.2007.pdf



They have bids in for Lake Eyasi-Wembere, Natron and Manyara and Lake Tanganyika South

They are active looking for new prospective licenses as promised.

1m shares are nothing in the scheme of things, even I hold more, but would they sell into a good story?



TOWER RESOURCES PLC ('the Company')



The Company was informed on 4 April 2008 that CIM Special Situations has sold
1,000,000 shares taking their holding to 31.75 million shares, representing 5.9%
of the total voting rights of the Company.

Alone it's nothing.

The announcement tell me thats all they are selling.

I will watch, I did see that the shares were being sold, even a million shows up when there are not too many in circulation.

Finals to 31st December 2007 plus operational update

Interesting update today.

LOL

http://www.advfn.com/cmn/fbb/thread.php3?id=16803160

doing very well.

180
You could say that 236% up.

LOL LOL LOL

poo
You still on these well done if you are.

Thanks SWW, I bought into the prospects for these last year after you alerted me via your informative posts on this thread. Taken out my investment and will let the rest ride.......Thanks.

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