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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.

Thanks to;


robs12 - 8 Nov'06 - 15:04 - 592 of 592


Don't want to put any noses out of joint (;-)), so will post here too..nothing new really, just my background research.

Ive done a bit more digging on Tower Resources (sorry, make take a little time to follow all the links..).
Please read it as a shameless ramp & since I like what I see (as a punt) & since I last posted I have become a small holder (for the next couple of years or so I expect)
Ive tried to pull together some info about prospects close to or adjacent to TRPs blocksnot that that in itself is worth anything.

Uganda:

What Tower has to say about the Uganda block:

http://www.towerresources.co.uk/index.php?page=Uganda

For a little associated info Ive dragged from the net.

To the North

(Muglad is approx 200km North of Towers block, according to Tower, though it looks a little more than that on the map below).

Probably the best map Ive found of the Sudan basins specifically the Muglad - here:

http://www.sudantribune.com/spip.php?article184

& some detailed notes (courtesy of Lundin) here:

http://www.lundin-petroleum.com/eng/operation_sudan.php#Geological

Interesting to note that In the Muglad basin the success ratio of exploration wells is in excess of 50%.

An alternative map showing central African basins:

http://www.searchanddiscovery.net/documents/2005/idris/images/02.htm

White Nile (dare I mention them & from what I understand the rights are still disputed by Total?) latest press release (7/11-i.e. today) reference block Ba (The Jonglei, furthest South in Sudan on the first map above):

http://www.advfn.com/p.php?pid=nmona&article=17564457

Over 500 km of high-density, 2D seismic data has been interpreted from the prospective Jonglei sub-basin of the Muglad Basin in the western part of Block Ba in South Sudan. Several prospects have been identified in the 1800 sq km project area, including one large structure of over 50 sq km, which has been high-graded as an immediate drilling target.
A drilling rig is now being procured and the first exploration well is planned to spud in the first half of 2007.

So that may bring some geographically closer news from the North.

To the South

I guess you are all well aware of the recent Tullow (Block 1, 2 & 3A immediately to the South of Towers Block 5), Hardman & Heritage results already. If not:

http://www.tullowoil.com/operations/africa/uganda.phtml
http://www.tullowoil.com/operations/africa/drc.phtml
http://www.heritageoilcorp.com/uganda.htm
http://www.hdr.com.au/projects_uganda.asp

So theres oil to the North & South& Tower obviously hope theres some inbetween too ;-)

Namibia:

The block is to the North, almost bordering southern Angola.
Note two dry wells already drilled by Norsk Hydro within the acreage.

What Tower has to say about the Namibia block:

http://www.towerresources.co.uk/index.php?page=Namibia

An (rather brief) overview of Namibia O&G:

http://www.mbendi.co.za/indy/oilg/ogus/af/na/p0005.htm

From the Sonangol website (Angolan national oil co)
The southern coastal region of Angola remains unexplored after the failure of blocks 9, 21, 22 and 25 which are located offshore of southern Luanda. Drilling has also been unsuccessful off the coast of Namibia, Angolas southern neighbor, which has further discouraged exploration.
Engineers in Sonangols geological department insist, however, that they want to begin a comprehensive survey of blocks in the Namibe basin, which they believe may yet produce surprises.

Doesnt appear to have been much interest in the blocks available.

So doesnt look much of a banker ;-) IMHO....then again.

Energulf have a stake in block 1711, just to the North of Towers block in Namibia, which apparently
contains the most attractive undrilled structure I have seen in over 40 years of exploring for Oil & Gas internationally, according to their senior advisor for African Exploration.

A prospective resource report (i.e. take with a pinch of salt?) for the 1711 block here:

http://www.energulf.com/news/09_08_06.pdf

The Russians (Sintezneftegaz) have a 70% stake & are committed to drilling a first exploration well on 1711 by March 2008, which I guess may have some repercussions depending on the news.

Some snippets from the last Tower Resources Chairmans statement (20 September):
considerable industry interest in the area.
The signature of a cease fire between the Ugandan Government and the Lords Resistance Army also provides welcome encouragement that the long running security risks to oil and gas operations in the northern areas of Uganda may become significantly reduced
Farm out discussions can now be intensified and contact is being made with a wide range of potential partners.
the Board is confident that a farm out on attractive terms can be achieved.
The results of these technical evaluations are currently being integrated into a full exploration potential assessment and an intensive farm out programme should be ready to start within the next two months.
The next six months should see progress with the introduction of funding partners to both licences, after which the Board may consider new ventures to broaden the Companys portfolio.

Full details here:
http://www.towerresources.co.uk/uploads/Tower_Resources_plc_interim_results_30June2006.pdf

So looks like they are hopeful of farming out in the nearish future.

Apologies for repeating myself from a previous thread, but the directors have some pedigree:

Peter Kingston from Soco, Taylor & Blakey ex founders of Dana & now GBP, along with Savage from GBP so they would appear to know about the business & pulling deals together.

As at January 2006, Taylor, Blakey & Savage own approx 46% of the shares (as a result of selling Neptune (for 200m shares, no cash)) to Tower. Rab = 14.5%, & several other (>3%) shareholders add up to another ~ 15%, so in rough numbers, 75% of the shares are tightly held.

They are currently capitalized at approx 8m = 429m shares in issue at ~2p a throw.
Perhaps a punt for the long term, with potentially interesting acreage, but a farm in deal (or two) in the short term should see a little excitement? A snip at 8m?

That's a darn fine bit of cobbling together by robs12.

I see advfn is attracting more names.

The trades today seem all buys according to what some are saying over there.

I would guess upping the bid is to attract bored sellers but I am guessing.

It's certainly starting to attract interest and the research being put in justifies it too.

This seems to be catching on now.

Good trading today.

Yes certainly getting more interesting.

tommyttrades - 10 Nov'06 - 10:29 - 635 of 638


Reckon the oil pipeline will be extended from Mombasa up to the lake area eventually..All we need is a decent find now.
Guarantee the Co. to undertake construction will not be from the West, more than likely Chinese.


NAIROBI, Nov. 9 (Xinhua) -- Kenya's officials said here on Thursday that plans to extend a pipeline from its coastal city of Mombasa to the Ugandan capital of Kampala was on course and was expected to take 18 months or less once the tenders were awarded.

Absalom Kosgei, Chief Technical Manager at the Kenya Pipeline Company (KPC) told reporters here that despite some hiccups in the tendering system, plans are still underway to connect neighboring Uganda to the vast Mombasa- Nairobi-Eldoret oil pipeline.

"The tenders have been done. They (Kenya, Uganda) are in the process of selecting the investor," Kosgei told journalists.

He said the Joint Coordinating Commission, set up by the energy ministries of the two East African partners, was working on the final details with KPC acting as the secretariat of the joint pipeline extension which would add an addition 340-km stretch.

KPC and its Ugandan equivalent, the Uganda Pipeline Company, are the main investment agencies in the 100- million-dollar project.

Kenyan and Ugandan officials held a pre-bidders conference in Kampala, Uganda late last year, during which 10 firms presented their bids for the project.

The Rift seems awash with oil.

100% sucess with the drill so far. 8/8

(Ramp intended).

News release


Tullow Oil plc - Nzizi-1 Exploration Well Update


13 November 2006 -Hardman Resources, the operator of the Nzizi-1 exploration
well in Uganda, in which Tullow Oil plc (Tullow) is a 50% partner, today issued
the following press release.


UGANDA: Exploration Area 2 Nzizi-1 Exploration/Appraisal Well


Since Hardman's last report, Nzizi-1 has been drilled to a total depth of 1,065
metres in a 6 3/4' hole. As at midnight on 13 November, wireline logs were
being run after having encountered oil shows across the target intervals.


Nzizi-1 is testing a structure up-dip of the Mputa discovery and was designed to
evaluate the equivalent oil bearing reservoirs intersected in the Mputa
structure. Nzizi-1 is situated approximately 5.5 kilometres to the southwest of
Mputa-2 appraisal well.

I am thinking of starting a "Whatever happened to........ thread.

georgetrio is missing presumed on holiday,

daves dazzlers not seen for a year. (Name change?)

http://www.investegate.co.uk/Article.aspx?id=200612050942402494N

"............Russell Langusch has stepped down as an Executive Director of the Company. Peter Kingston, currently non-executive Chairman has been appointed Executive Chairman with immediate effect................

Tower Resources' Executive Chairman, Peter Kingston, commented:

'We are extremely grateful to Russell for his time and assistance during the formative stages of Tower Resources. We wish him well with his other business interests.'

Russell Langusch said:

'Given the changing management requirements of Tower as the Company adopts a more operational role in Uganda and the ongoing demands of my position at Elixir Petroleum, I feel that I am unable to commit my time adequately between these two directorships.'"

I assume then, we are about to get some action over the next few months weeks or days?

It looks that wat SW. Buys going through today at 2.1p

Positive sign when someone buys a place on the board.

Hi mm.

I had seen it but did not have time to react today in detail.

Yes a very positve sign.

Things will move now.

The structure of the Company looks like a mini SOCO imo.

Good to be in these early.

Borrowed from tmf

Notice of EGM - share placement to get things moving.

".........so as to be able to optimise commercial terms with potential farm-in partners and to retain substantial interests where desirable. Farm-out activities have been underway for the Uganda Licence, Block EA5, for some months and there has been significant interest and commercial terms have been discussed with a small number of companies. The farm-out process has only recently begun for the Namibia Licence but serious interest has already been attracted................"

"UGANDA thinks that it and neighboring countries have discovered oil deposits large enough to rival those of some of the world's greatest petroleum producers, according to Uganda's Energy and Mineral Development Minister Daudi Migereko......"

The item is a good overview.

http://www.nypost.com/seven/01092007/business/oil_find_in_uganda_may_change_game_business_john_crudele.htm

Pinched from O&G board - ManSiarad was the poster.

Eye eye............

Whats all this then?

Hmmm............

Hopeful sort of chap the MOO chap!

Thinks Uganda could be the next Saudi Arabia.

No way, they are land locked for a start and ther are too few Arabs.

Kingfisher finds more oil, still a fair way to go to t/d

Could be helpful!

http://www.newvision.co.ug/D/8/220/543585

Is this heading for a breakout ?

No.

Too early and not enough volume.

Wait till after they finish Kingfisher and then see what occurs, most likely get a rise then.

Anything sustained will have to wait till they have done the 3d stuff mid summer and then interpreted it.

But now it's at an all time high.

News is due on farmouts..........any time.