Company Home Page

Company Profile

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.

Looks like we may have a chart breakout to contend with.

Well, yesterday's high held and today we are up again.

Could well be something in the wind.

Looks like the breakout is confirmed today.

Looks like the breakout is confirmed today.

I agree, breakout confirmed.

Nice if it can hold.

Wait and see time

Sorry, I won't do that again.

8-)

Update on Company Activities and Placing

Uganda
o 2D Seismic survey to commence in July with a view to drilling in 2008
o Other Operators reporting exploration success

Namibia
o Reprocessed data highlighted potential for commercial gas reserves
o 2D Seismic survey in planning for late 2007

Placing
o 500,000 raised in Placing of New Ordinary Shares


AFX


LONDON (AFX) - Tower Resources said that 'good progress' has been made with operational planning at its Uganda project and anticipates drilling a well there in 2008, while in Namibia reprocessed data has highlighted the potential for commercial gas reserves.

In an update, the firm also announced that it has raised a further 500,000 stg through the placing of 25 mln shares, after it raised 1.04 mln stg in a placing in December.

The funds will be used for the development of its existing oil and gas assets, the expansion of its oil and gas portfolio and for general working capital purposes, said Tower.

The firm said in Uganda surveys are currently underway to investigate the possibility of surface oil seeps. A contract has been signed with IMC Geophysical International Ltd under which IMC will acquire 250 kilometres of seismic data, estimated to begin in July.

The intention is to complete the interpretation of this data and to begin drilling a well early in 2008, planning for which will begin soon, added Tower.

Other operators in licences to the south of Block 5, such as Tullow, have continued to have success, pointed out Tower. These programmes, when added to Tower's own activities, will amount to 'a significant assessment of the potential of the Albertine Graben', increasing the 'likelihood of proving up sufficient oil reserves to support a pipeline from the operational areas', it said.

In Namibia, meanwhile, studies have confirmed that three out of four potential source rocks are likely to be mature with significant areas at peak maturity, the company said.

'Analyses have highlighted the potential for commercial gas reserves in the northern part of the licence, particularly in a very large structure to the west of, but adjacent to the deepest 'kitchen' area of the Dolphin Graben.

'The immediate exploration programme, including a 2-D seismic survey later this year, will be directed at investigating the potential of this structure,' it added.

Great trunaround in the share price today, was down 30% because of the placing, now 8% plus up!

Oil Voice

And it moves on with Today news on Board Changes.

http://www.investegate.co.uk/Article.aspx?id=200702091022490051R

Out = Russell Langusch, so as to focus on ELP as I understand it.

In = Jeremy Asher, (Agile Energy)

".....The Company also announce that following his appointment as Executive Chairman Peter Kingston has been paid a supplementary fee of 10,000, which has been satisfied by the issue of 320,000 new ordinary shares at 3.125p per ordinary share, the closing mid market price as at 8 February 2006. Mr Kingston has also been granted options over a total of 1,000,000 shares at 3.125p per share......"

Shares in issue = "......Following the admission of these, the total number of voting rights in the Company will be 529,653,333......."

A lot happening lately and the sp has responded very well to the placings since the beginning of the year.

This is becoming a company in a hurry imo.

www.allAfrica.com - Uganda: Tower Group Begins Oil Exploration

Tullow Oil PLC
01 March 2007

News release

Tullow Oil Plc - Kingfisher-1 Well Test Results


1 March 2007 - Heritage Oil, the operator of the Kingfisher-1 exploration well
in Uganda, in which Tullow Oil plc ('Tullow') is a 50% partner, today issued the
following press release:


Calgary, Alberta, March 1, 2007 - Heritage Oil Corporation (TSX: HOC) today
announced final results from the successful testing of all three intervals in
the deeper horizon of the Kingfisher-1A well in Block 3A, Uganda. The three
intervals tested, from between 2,260m to 2,367m, had a total net productive
thickness of 44 metres and produced at a cumulative maximum flow rate of 9,773
bopd. Additionally, the test of the shallower interval reported in November 2006
produced at a rate of 4,120 bopd, resulting in an overall cumulative maximum
flow rate of 13,893 bopd from the Kingfisher well. The tests may be summarised
as follows:

Depth Interval thickness Production Oil quality Flowing well head
pressure
(metres) (metres) (bopd) (API) (psig)
Deeper intervals
2,344 21 2,965 32 240
2,290 12 2,254 31 157
2,260 11 4,554 32 360
44 9,773
Shallower interval*
1,783 10 4,120 30 221
Total 54 13,893



* Test undertaken in November 2006


The oil is good quality light (between 30degrees and 32degrees API) and sweet
with a low gas-oil ratio and some associated wax. All of the above production
flow rates were conducted through a one inch choke. The reservoirs are
sandstones which have high permeability up to 2,300 milliDarcies.



The Kingfisher prospect is a very large structural high that is expressed at
surface on the bed of Lake Albert. Seismic data indicates an areal extent of up
to 70 square kilometres for the Kingfisher prospect. This first exploration well
only investigated a limited part of this large structure and did not reach the
deepest objectives.



Heritage is operator of and holds a 50% interest in Blocks 3A and 1 in Uganda,
and has a 39.5% interest in Blocks 1 and 2 in the Democratic Republic of Congo.
The total gross size of these holdings is in excess of 12,000 square kilometres
and they occupy a very substantial part of the Albert Basin. Heritage's partner
in these blocks is Tullow Oil. A map of the licenses, and the potential targets
in Block 3A, is available on Heritage's website (www.heritageoilcorp.com).



Looking forward to future Uganda work programs, Heritage has contracted to
acquire two seismic surveys this year; a circa 325 square kilometre 3D program
over the Kingfisher and Pelican structures in Block 3A and a circa 500 kilometre
2D survey in Block 1. Further drilling of the Kingfisher prospect will commence
following the acquisition and interpretation of the 3D seismic survey. Efforts
are currently being made to identify and secure a higher capacity rig capable of
deeper drilling in order to explore the deepest objectives not penetrated by the
Kingfisher well. In addition, initial plans are being developed to drill the
offshore Pelican prospect next year.



Tony Buckingham, Heritage's CEO stated 'The cumulative flow rate of 13,893 bopd
from the Kingfisher well has surpassed our expectations. The test results
indicate the outstanding potential of the Kingfisher discovery; substantially
lowers the exploration risk of drilling other multiple targets in our licenses;
and is another step closer to future production and commercial viability.
Heritage is accelerating the work program to maximise the potential of what
could be a world-class petroleum basin. All five wells drilled in the Albert
Basin in the last 15 months have been oil discoveries, which we consider
exceptional for a virgin onshore hydrocarbon basin and Kingfisher is the second
well that has produced over 12,000 bopd under test. This is a very exciting time
for Heritage, as these licenses could transform this Company.'

http://www.investegate.co.uk/Article.aspx?id=200703010702211034S

Hi Big Al.

The question is, if you refer to the tectonic map above, looking at Towrs acreage and bearing in mind the scale, are the faults possibly a help or a hinderence to deposits if any in the depotcener in license number 5?

If you don't know, that's fine and thanks for looking in.

sww - are you sure that scale is correct? The narrative says block 2 is 160 km SW, but that would be off the map. Must be wrong no? If it's correct, the acreage and depocentre seem very small.

Anyway, faults? They can be both a help and a hinderance. Most traps in the world are created by faults. The East African graben (rift valley) is no different to the Graben (plural) in the North Sea where all our oil wealth lies. Therefore, faults = reservoirs, which is good news. Of course, these have to be sealing. There are circumstances in which they could hav eprovided a route whereby hydrcarbons may have long exited the structure.

The interesting thing are the seeps on map 2 - wonder what they're all about.

Hi Big Al, thanks for looking in.

I was looking at the scale coincidentally, I thought it was wrong as well.

The siesmic booked for July is 260 square KM so I would say that there may be a naught left off.

The seeps are interesting as they are probably from a trap known as Kingfisher which is thought to be 3000 feet down and pretty darn big. Tullow and Heritage have that all sown up both sides of the border!

The bulk of Kingfisher is thought to be under Lake Albert and seeps are evident on the surface water of the lake.

I'll do some more on the scale, probably wont take too long.

I am interested in Tower because of the tectonics and appraciate that without a seal there may be nothing.

Back soon.

This map shows the distance across Towers acreage at the bottom as 50km.


That works out for the 260km of seismic.

I think it proves the other to be incorrect.

I think Tower is an interesting punt at the 2.5ish price and from your answer I will stay with it and top slice as and when.

Your reply has helped put into perspective a point raised elsewhere, many thanks.

"Seeps and Oilfields

A good definition of a seep is ''the surface expression of a migration pathway, along which petroleum is currently flowing, driven by buoyancy from a sub-surface origin'' (Clarke & Cleverly,1990). Knowledge of where oil and gas seeps are emerging is therefore a key piece of evidence in reducing the risk on source presence in a new basin as seeps originate by leakage from buried oil and gas accumulations (fig 1). At the most basic level, this demonstrates that the basin contains a generating source rock and hence a viable petroleum system.

Oil seeps

Work published by BP and others in the early 90's (Clarke & Cleverly,1990; Clayton et al.,1991) demonstrated that over 75% of the world's petroliferous basins contain surface seeps (Fig 2), the exceptions being those with unbroken regional evaporitic seals (such as the Hith Anhydrite in the Arabian-Iranian Foreland basin). Most seeps represent tiny but detectable volumes of oil and gas which are not significantly depleting the reservoir. Exceptions would be in some recent onshore fold and thrust belts where accumulations have either been breached or redistributed to tertiary traps and where the link between surface seeps and the leaking traps is more complex. Such geology, however, is rarely encountered in offshore basins so that problem does not arise. Confirmation of the presence of seeps, therefore especially in offshore basins, is positive and in the vast majority of cases is not indicative of breached or depleted traps."

http://www.npagroup.com/oilandmineral/offshore/oil_exploration/index.htm

That Kinfisher is a decent size now the scale is right.

Tower might be worth a punt looking at it. 33% spread means it's no trading stock. LOL! 12.6m mkt cap I have tonight. Need to check how much cash, etc. Always handy to have 100% though. ;-))

Al. The board memebers are what I was initally attracted to this for........

Chairman - Peter Kingston
...a Petroleum Engineer ...40 years of experience in technical, executive and advisory roles....directly engaged, as a director, in the strategic development of oil companies for over 20 years and ...served as executive and non-executive director of UK-based oil and gas companies, including LSE-listed, AIM-listed and private companies. He was Joint-Managing Director of Enterprise Oil Plc from 1984 to 1992. He is ...Deputy Chairman and Senior Independent Director of Soco International ... where he also serves as Chairman of the Audit and Remuneration Committees.... He became Chairman of Tower Resources on 1st February 2006.

Executive Director - Russell Langusch
...a petroleum engineer ...over 29 years' experience in the upstream oil & gas and finance sectors...includes direct working experience in Australia, South-east Asia and the UK North Sea....spent 13 years with Schlumberger and Esso in a variety of roles including field engineer, field service manager, marketing manager, petrophysicist and senior reservoir engineer ...then employed by a number of international investment banks including James Capel, Deutsche Bank and CIBC World Markets as an Oil & Gas Analyst undertaking company research, corporate advisory and M&A work....managing director of Elixir Petroleum Limited, a dual AIM and ASX-listed North Sea exploration company

Non-exec director - Peter Taylor
...Joint Chairman of TM Services Ltd, an international oil and gas consulting company. In 1991 was a founding member and director of TM Oil Production Ltd ...now Dana Petroleum Plc, an oil and gas company listed on the Official List and one of the UK's leading independents. ...a director of Dana until 2001...a founding member and director of Consort Resources Ltd, which became a significant North Sea gas production company, and of Planet Oil Limited, which was merged with Hardman Resources Limited in 1998. ...a founding member and director of Star Petroleum PLC, which was incorporated into Global Petroleum Ltd, which is dual ASX and AIM listed and which has significant interests in Kenya and the Falkland Islands. ...a founding member and director of Neptune.

Non-exec director - Peter Blakey
...Joint Chairman of TM Services Ltd, ...founding member and director of TM Oil Production Ltd, which is now Dana Petroleum Plc ...founding member and director of Consort Resources Ltd, which became a significant North Sea gas production company, and of Planet Oil Limited, which was merged with Hardman Resources Limited in 1998. ...a founder member and director of Star Petroleum PLC, which was incorporated into Global Petroleum Ltd, which is dual ASX and AIM listed and which has significant interests in Kenya and the Falkland Islands....a founding member and director of Neptune.

Non-exec director - Mark Savage
...senior executive for a number of US banks before he joined an Australian based merchant bank....experience in debt and equity markets as well as in the corporate advisory area..has held directorships with a number of public companies....is a director of Global Petroleum Ltd which is dual ASX and AIM listed and which has significant interests in Kenya and the Falkland Islands.

Dana and SOCO feature quite a lot, Russell Langusch from Elixir has moved on, but thoise other guys are not withTower for fun's sake, they know what they are about.

As regards their Uganda License, they currently have 100% and must drill before year end 2008 AIUU, they are actively seeking a farm in, but refuse to let go more than 40%, have stated they are happy to keep 100% if their terms are not met and have private backers waiting to bankroll if they need it.

Need to look at Namibia too, but I suspect that Uganda is the one with potential to be a Company maker. The company are looking to hedge out any investment with other opportunities, their words, elsewhere so they are in the market for more.

You are right about the spread, however it has narrowed enough for me to slip in and out over a couple of days, so I have reduced to anti by 25% of late.