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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.

clearly the market doesn't believe that story - enuf sed

that certainly seems to be the case - regardless of that i'm happy to wait for the official news either way

Read about this one in The Times this morning - said they were expecting positive drilling results yet SP headed South.

Can anyone expand on this?


Cheers

Look at the RNS. Oh dear.

dead in the water

Luckily...not many of these....they only have the namibian assets left....what a mess !.

Whoops! least i only invested a grand here. Can`t win um all.

Shame the online sytems are manipulated rotton otherwise there's good money
to be made trading it.

In this sector i think Pele represents the best and safest value if there's such
a thing.

me too blanche .... i had 1500 in here which i have now dumped .... serves me right

actually, a far better bet is now DES which has tumbled back to about 107 in sympathy

Amazing what bulletin board hype can do to a shareprice, Trp constantly finds dusters yet their shareprice always seems to treble from their lows before the next
duster is found, as long as the pump and dumpers get out with their profit they will
happily move onto the next one.

Cynic. Think iam just gonna put in the bottom draw and hope for Namibia in 2011/12. Least i didn`t have anything in sogp. Major WHOOPS!

If you were quick this morn you could have brought for a 1p and sold now for 1.5p

Almost impossible to do online, tried and was refused to buy even 10k until the
price hit 1.5p offer, mm's just refuse to let online dealers buy or sell unless they
have a big order to clear.

Ravey Forget online when these things happen they never let you trade you have to use the phone!

Too right, i was trying to buy 100k all the way down with selftrade at 1.05p offer
and when i did get a quote it was 1.75p when the offer was 1.25p, you dont stand a chance thesedays with market makers and their blantant manipulation of the online system, it's not even close to fair.

that's why you need to work with a proper company - e.g. IG or a proper broker

glad I didn't bother with this one! That would have been painful

I've used IG and they are quite frankly poor and i doubt they would have let you
get any size at the right price and time this morning.

And even a quality phone broker such as Charles Stanley would have struggled,
the fact was that whille the mm's were dropping the price sharply they had the
buy limits next to zero and with a NMS of 25k it would be hard work, did manage
to get a very small amount at 1.28p and sell it for 1.6p so it was worth the wait.

as this is an MM only stock, any broker is governed absolutely by what the MMs offer .... thus, you can place an order at a given level through IG or whoever and can instruct part fill if necessary .... they will then place it with MMs and ask them to try to work it

And that would take less than one minute then cynic !

The whole point was that while the price was 1.1p or less which was only about one minute the mm's refused to let you buy online so it did not exist because it would be impossible to have enough time with a phone dealer to get any stock at that price, a few limit orders might have got lucky.