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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.

"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.

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