Uganda - Iti-1 well result

RNS Number : 8635T

Tower Resources PLC

15 June 2009

 



PRESS RELEASE

15 June 2009

Tower Resources completes and abandons Iti-1

Tower Resources plc ('Tower' or the 'Company')

Neptune Petroleum (Uganda) Limited ('Neptune') the wholly-owned subsidiary of Tower Resources plc has completed operations on the Iti-1 exploration well in Uganda Licence EA5.

The well, which was drilled to a total depth of 592 meters, did not encounter any producible reservoir sands at the Iti-1 location. Minor hydrocarbon shows were monitored during drilling but evidence of limited quantities of oil in the lowermost target horizon remained ambiguous in the subsequent down-hole well logs and pressure test data. Neither of these observations has any relevance to the commercial viability of this well but may have wider exploration significance. A complete re-evaluation of the well data, combined with all other available technical data, will be undertaken as a priority to determine a more prospective location for a second well. The lack of reservoir at this location could not justify further testing or the immediate move to drill a second well.

Tower's Chairman, Peter Kingston, commented: 'The result is very disappointing for everyone involved, not least the people of West Nile. However, this is a very large Licence and there is every chance that far better reservoir sand quality can be found elsewhere in EA5. There is much to learn from this first well which will help with future exploration activities on the Licence.'

In accordance with AIM guidelines, Peter Kingston, who is a petroleum reservoir engineer with over 40 years experience in technical, executive and advisory roles in the oil exploration and production industry, and is Executive Chairman of the Company, is the qualified person that has reviewed and approved the technical information contained in this announcement. 

Contacts:

Tower Resources plc	www.towerresources.co.uk
Peter Kingston, Chairman	07802 804852
Astaire Securities (NOMAD and Broker)
Andrew Raca/Jerry Keen	020 7448 4400
Fox Davies Capital
David Poraj-Wilczynski / Oliver Stansfield	020 7936 5230
Aquila Financial Limited (PR)	www.aquila-financial.com
Peter Reilly	0118 979 4100

 

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