Tower Resources plc notes that Repsol SA ("Repsol") has announced during its investor presentation on 29 May 2012 that it is planning to enter Namibian offshore licence 0010 (the "Licence") as operator and take a 44% working interest, which is consistent with previous remarks made to the media by the Namibian authorities. The Licence is presently held 85% by Arcadia Petroleum Ltd ("Arcadia") and 15% by Tower.
Tower notes that the formal documentation and government approvals for this transfer are not yet completed and Tower will inform the market as soon as it becomes aware that this has occurred. Provided the transfer is completed, interests in the Licence will be Repsol 44%, Arcadia 41% and Tower 15%, and Tower's carried interest (through the first and optional second exploration wells) remains unaffected. Tower is continuing to investigate opportunities to increase its interests in the Namibian offshore.