Tower Resources plc, the oil and gas exploration company with interests in sub-Saharan Africa, principally in Namibia and Uganda, is pleased to provide an update to shareholders on its operation in Uganda, managed by Neptune Petroleum (Uganda) Limited.
A letter of intent in advance of a contract for the 2-D seismic programme of 150-200 kms has been signed with TESLA-IMC International Limited and line clearance is expected to begin by late April. Completion is targeted for end June 2011, by which time a well location can be selected. A high-density geochemical survey, conducted by GORE Geochemical Surveys, is also underway over the prospect area together with focussed sampling around the two existing wells and an oil-bearing well in EA1. The Environmental Impact Assessment and early operational planning for a third well have begun. Now that the political uncertainty with respect to long-term development planning in Uganda appears to have been resolved, a final phase of the farm out programme has been initiated. The Tower Board has raised the additional equity capital required to undertake the seismic programme on schedule and a well can still be drilled in October 2011, subject to rig availability. If the cost of seismic is subsequently met by a third party, the funds will be deployed on new projects.
Peter Kingston, Executive Chairman of Tower Resources, commented: "I am pleased that the Uganda seismic and well programme is still on schedule."