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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.

Well back in profit now 72% so happy days again. Things are gradually building here, With good buying again today. Something a foot me thinks. AIMVHOOC

Decided to sell with 95% profit. To tempted to put money else where. Will keep eye on it may come back in future.

good for you blanche, got to go quite a bit more for me, don't think i'll see 95% lol..

Timed that pretty well, better still ploughed the lot into bao at 10.25. Happy Days

This is the next one to do a vertical rise....in the world of speculative oilies.....

http://www.iii.co.uk/articles/14365/four-oil-firms-east-african-exposure

Chart breakout about to happen ?....should move very fast if so !.

Trickling up......massive potential....nice rise...

Starting to really climb now...perhps 10p on the cards ?.

Decided to take some profits here as this has had a tremendous run and a discovery is priced in......not sure where the top is....

RNS out. Looks good to me. Any thoughts?

One of the rare steady risers over the last week.....looking good once more...

Whats going on with TRP today. No trades!

Might be time to get back in here......loads of news to come from this and CHAR soon...should push the sp's higher....

Time to look at TRP again.... BPC....2 billion barrels perhaps...GOO...2 billion barrels perhaps...TRP...9 billion barrels perhaps.....in the perhaps world..no contest...

http://www.investegate.co.uk/tower-resources-plc--trp-/rns/statement-regarding-results-of-murombe-1-well/201307220700117842J/
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CEO Jeramy Asher.

Sums it up .....pooooooo

This chap really makes SLG's Azancot look like a bit of a wuss.

In January 2008 there were 527m shares in issue.At 3p odd that was a market cap of £15m.

In addition to Uganda they had free carry on 15% of a well in Namibia having farmed out 85% to Arcadia for back costs and siesmic.

Fast forward to June 2012 when Repsol takes over from Arcadia as Namibia operator with 44%.TRP stays with 15% free carry.

In July 2012 TRP decides it wants to increase its share to 30% (thereby abandoning its free carry)
by reimbursing Arcadia with back costs (5.3m$) and committing to 30% of future well costs .

Fast forward to early July 2013 TRP says total well costs net to TRP will be 24m$ for its 30% .It has 2.8m$ cash at the end of June.
Shares in issue now 1624m (!) at ~ 1.55p market cap £25m -in spite of having found nothing in Uganda .
So they now want to issue another 1163m shares (plus the 120m for the Wilton purchase) for ~20m$ taking them to 2907m shares just to give them 20% of the Namibian well .Presumably they are earmarking about 16m$ for this but there's no guarantees as they say they want to make some more (2?) aquisitions before the year end.
They say they want to farm out the remaining 10% but there are no guarantees there at all so they may well have to issue another say 500m shares to raise another 10m$.
On this scenario they will have 3400m shares in issue for what is essentially a shit or bust well or double the shares in issue from the free carry.

Quite why they could not be satisfied with 15% without diluting existing shareholders so much is quite beyond me.

TRP is potentially a 10 bagger at todays prices. And the first drill is only a few months away now. The hype surrounding just being a Namibian oil explorer may get this to 10p before the drill results are out. Some brokers are all ready predicting a £5+ share price if oil is discovered.

WATCH:Nigel Quinton, Head of Exploration, Tower Resources present at 62nd Oilbarrel conference

Click the link to watch
http://www.brrmedia.co.uk/event/118313/nigel-quinton-head-of-exploration