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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.

TFC.

Well said, i tried doing that cautious approach on AST here and got abused rotton, Ast is similar to TRP in that they have a habit of disappointing just when hopes are
getting up again, sick of the abuse i receive at times for making my view.

Sorry harry -typing not my strong suite. Being on this very thread i meant TOWER..(TRP) .,,,,,,,,,,,,,,,, so many new floats in the gas/oil sector on AIM may more than suggest where the money of the future is to be made- but still l would advise extreme caution - you dont want to end up with a basket of highly risky purely speculative shares obviously Hope you have among your oiles underpinned with a couple of bellweathers and a few FTSE 350 proven plays

TFC - you are absolutely right about daring to speak against the herd, let alone putting money there

Now dont get me wrong Mr. C but i cant tell anymore whether you are being sarcastic :-)) ,,,,,,,,,Regards regardless.

not at all .... cold blast of reality upsets many

yes ,,,,,,dont i know that ...short of death threats there remains little in terms of abuse left to them call me ,,;-)) MXP up 25% since i asked yr opinion last week.......admitedly on amer thread :-))

i like MXP even less than AMER, though to give the latter its due, it has sure performed well recently

your dislike of mxp, by any chance, due to Times article reg Kazi licenses ? ....u cld be right ,of course..l mean look at Putin getting involved in the truly huge BP/TNK j/v with intention of awarding BP's share to Gazprom- but methinks its a sabre waving exercise in Kazi land - too desperate for foreign investment..........................................................................................................edit ....mind you .Ever seen the place --- not unlike old style run soviet republic. absolute arm pit of the world

no ....can't remember why i disliked; perhaps just because it was foreign! .... by the way, some major oilfield developments scheduled in kaz for Q3

Quite amazing how many times i've tried to buy a paltry 100k today only to be to turned down for too much size, happy to drop on L2 but wont offer any size at the same time, always means there will be a little spike upwards back to 1.5p when they finish flushing out any weak traders near the low.

Yep 10k max buy online or 135, it's not a bad life being a mm, they must all make hundreds of millions a year manipulating prices to their advantage with aim oil and gas pennies !

don't know what you are on about, no problem buying any amount online.

You try and buy when they are forcing it down to the lows, not a chance
unless you keep it very small, when it's rising and the offer is back up of
course they open the limits.

sorry no problem buying online if you genuinely want to buy.

What are you trying to say ?

why did todays RNS not say the well had been abandoned as a duster but instead say they were studying the wire logs?

Tower Resources plc (AIM: TRP) wishes to advise that Avivi-1 has reached its total depth at 764 metres without experiencing oil shows - basement was penetrated at 742 metres. Electric logging operations are underway and a full statement will be released once these have been completed.

quite!

PINCHED FROM ANOTHER BB.

In response to an email query regarding why the well was not abandonded, and whay they hope to obtain from testing.


Dear Mr XXXXXX,

The well was drilled to its total depth and the announcement was simply a true statement to limit the possibility of further market speculation.
A decision on plugging and abandoning a well would not normally be made until the wireline logs had been completed in case the drilling results were misleading. Such a decision will be possible in the next couple of days after which another announcement will be made with a more complete explanation of results. As I always have to remind people, one successful exploration well out of five is considered a good record and knowledge of a Licence can sometimes take several wells to become complete.

Your sincerely,

Peter Kingston
Chairman

Tower Resources Plc
5 Charterhouse Square
London
ECIM 6PX

in other words, he's effectively admitting this well is a total dud

Exactly