Tower Resources PLC
28 August 2007
PRESS RELEASE
28 August 2007
TOWER RESOURCES AND ORCA EXPLORATION
JOIN FORCES IN UGANDA
Tower Resources ('Tower'), the AIM listed oil and gas exploration company, and
its wholly-owned subsidiary Neptune Petroleum (Uganda) Limited ('Neptune') have
reached agreement with Orca Exploration Group Inc. ('Orca'), a Toronto TSX
Venture Exchange quoted oil company. Orca will have an option to fund 83.33% of
the expected cost of a commitment programme of seismic and two exploration wells
to earn a 50% interest in Exploration Area 5, north western Uganda. The
exploration area is currently licensed 100% to Neptune.
Under the terms of the agreement, Orca will fund 83.33% of certain back costs
and a 2D seismic programme of 250-300 kilometres, expected to begin this coming
September, which fulfils the commitment of Neptune Petroleum relating to the
first exploration period of the EA5 licence.
On completion of the interpretation of the seismic data, Orca will have the
exclusive option to be assigned a 50% working licence interest in return for
continuing to fund 83.33% of two exploration wells, expected to begin in
mid-2008. Orca's financial contribution relating to the licence commitments is
limited to maximum amounts of US$5 million in respect of the seismic programme
and an additional $10 million in respect of drilling and, if successful, $5
million in respect of testing the two wells.
In the event that Orca exercises its option to become a 50% partner, Neptune
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 operates the Songo Songo gasfield in Tanzania. Its principal corporate
office and operating base is in Dar-es-Salaam.
Tower's Executive Chairman, Peter Kingston, has welcomed the future involvement
of Orca as a potential 50% partner in EA5. He said:
'Orca has the same cultural philosophy as Tower in the approach to conducting
business in a community-friendly manner. Its significant experience of managing
operations successfully in Tanzania and its belief in combining the strengths of
both parties in the management of business activities will be very positive for
both sets of shareholders. Uganda is entering a very exciting phase in its
development as a new oil province and both Tower and Orca are looking forward to
being a significant part of its future.'
End
For further information, please contact:
Tower Resources plc www.towerresources.co.uk
Peter Kingston, Executive Director 01985 211780
Blue Oar Securities
Rhodri Cruwys 020 7448 4400
Aquila Financial Limited www.aquila-financial.com
Peter Reilly 020 7202 2600
Yvonne Fraser
Notes to Editors
Tower Resources Plc is an AIM-listed, independent oil and gas exploration
company based in London.
The company is focused on sub-Saharan Africa, holding 100% exploration licences
in Namibia and Uganda through its two operating subsidiaries Neptune Petroleum
(Namibia) Ltd and Neptune Petroleum (Uganda) Ltd.
The company's assets include; blocks 1910A, 1911 and 2011A offshore Namibia and
onshore block 5 in Northern Uganda.
This information is provided by RNS
The company news service from the London Stock Exchange
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