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.

this exctract from the company's home page says it all .......

Tower Resources will, in mid-2008, begin a two well drilling programme and may, at that stage, bring in industry partners to share the associated financial risks.

at this juncture, and indeed for the next 12 months or longer, TRP is worth less than nothing ....... plenty more like that to choose from!

Having perfomed due dilligence pver a year now and decided this is the best of that bunch and well worth the punt, I will stay with it tillthe end.

Especially as they have brought in industry partners who will foot all costs so far subject to the usual conditions and that only leaves them 3m in the bank to play with for thier next stated intent acquiring more exposure in other areas.

So says the latest few RNS's which should have been read for the complete picture

The market cap is 14m and I would point out that a good fair proprotion of shares are held by individuals and institutions.

Let's hope that their bank is not Northern Rock!

more to the point, let's hope you have not taken out a mortgage to buy these!

Elephants digging for oil mmm

http://www.towerresources.co.uk/

If there is any possibility of their block having oil then they will be taken out by Tullow next door.

Tullow have stated they have enough Uganda just now see their finals.........

Heritage are trying to sell themselves..............

As said most of the stock is privately held, some with institutions, a takeover would only succeed at an agreed premium, so that won't happen.

cynic, yes I did take out a mortgage, lucky it was with Northern Rock so it won't count soon..............

Thanks for the contributions, even yours driver

LOL

Don't you?

Silly old seawallwalker, don't know your own name!

Orca(Towers Farm in partner for Uganda).

"In Uganda, the 300-kilometer seismic acquisition programme is due to
commence in December 2007 on Orca option lands. The data will be processed and
interpreted during Q1 2008. It is anticipated that the decision on whether or
not to drill two wells in Uganda will be made by 30 April 2008 with drilling
proceeding in the second half of the year. Work is already underway to
contract a suitable drill rig in country.
Exploration in Uganda by other energy companies continues to show
positive results. In the south, Tullow Resources plc has had significant
success with the drill bit and its reserves are reported to be approaching the
level at which it will be economically viable to install a 1,200 kilometer
export pipeline to Mombasa. This would mark a significant milestone in the
development of the Ugandan oil reserves and would help to monetise any oil
discovered by Orca.
To meet Orca's vigorous exploration, development and acquisition
objectives, the Company successfully raised Cdn$34.5 million during Q3 2007
through a fully subscribed private placement. These funds have enabled the
Company to fund the successful completion of the SS-10 well and to have
sufficient funds for the Ugandan exploration efforts in 2008. There is good
reason to look forward to the next year with considerable confidence."

"In Uganda, management will focus on finding oil reserves. A 300 kilometer
2-D seismic programme will be shot over the next three months by IMC
Geophysics International Limited and will be processed and interpreted by the
end of Q1 2008. Orca can then determine whether to proceed with the drilling
of two wells during 2008. The Company continues to evaluate existing and new
Ugandan data and is encouraged by the findings to date."
http://www.newswire.ca/en/releases/archive/November2007/29/c6000.html

I acknowledge the researcher encarter who posted this on a competitors site.

Ah......... there's more!

None of this will copy and paste but it came from the Company doing the seismic.

The seismic has begun!

Jolly old Dr Square found this one.

Some very good background in the Orca Q3 results :-

Uganda 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.'

Posted elsewhere by CarlosAlberto70

We have some very strong connections within the investors of this compnay, Carlos Alberto?

Hmmmmmmm................

Uganda Seismic Begins.

Having alreadsy done a gravity survey over the area in question pre farm out, I would anticpate some success here.

And the seismic was completed on the 12th February, some price and trade movements today.

Company update on or around 6th April

For those who dont know, this company has no debt at all and cash in the bank and 2 30% free carries on thier licenses.

They are activly looking for new licenses of quality.

They will not be 3 pence for much longer thats for sure

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!