Update to Competent Persons Report

RNS Number : 3501I

Tower Resources PLC

02 July 2013

 



2 July 2013

Tower Resources plc

Update to Competent Persons Report ("CPR") by Oilfield International

Increased chance of oil in upcoming Namibian well

Tower Resources plc ("Tower" or the "Company"), (TRP.L, TRP LN), the AIM listed Africa-focussed oil and gas exploration company, is pleased to provide the following independent update to the Competent Persons Report ("CPR") compiled by Oilfield International ("OIL") on 29 June 2011 with respect to the company's 30% working interest in Namibia Petroleum Exploration Licence 0010 (PEL 0010) held through Neptune Petroleum (Namibia) Ltd.

The CPR update was provided by Oilfield International in view of the significance of the following exploration drilling results within the Walvis Basin, offshore Namibia, and the potential impact on the prospectivity of PEL 0010:

1.    Tapir South-1: Drilled by Chariot Oil & Gas plc on Block-1811A between March and May 2012 and encountered over 200 metres of high quality reservoir in the Cretaceous and Carbonate sequences.

2.    Wingat-1: Drilled by HRT Participações em Petróleo S.A on Block-2112A between March and May 2013 and encountered two oil generating source rocks within the Cretaceous sequence and several poorly developed reservoir sequences from which oil samples with a gravity of 38^o to 42^o API were extracted.   

Highlights:  

§ Potential for oil versus gas:

The probability of encountering light oil relative to gas in the Welwitschia prospect has increased from 50% to 65% and in the Alpha, Gamma and other inter-structural prospects has increased from 45% to 65%.  This assessment is primarily driven by the discovery of light oil in the Wingat-1 well and the presence of abundant source rock.

Fluid Type	CPR 2011		UPDATE to CPR (June 2013)
	Welwitschia (previously "Delta")	Alpha, Gamma and Inter-structural Areas	Welwitschia (previously "Delta")	Alpha, Gamma and Inter-structural Areas
Dry Gas	10%	11%	10%	11%
Gas Condensate	40%	44%	25%	24%
Volatile Oil	50%	45%	65%	65%
Total	100%	100%	100%	100%

§ Geological chance of success ("GCos"):  

The GCoS remains unchanged as the improved probability of source rock inferred from the Wingat-1 well result is confirmation of the potential for oil generation.

§ Prospective Resources estimate:

There is insufficient evidence from the Tapir South-1 and Wingat-1 well data to make an inference with respect to the reservoir quality of the Welwitschia prospect and therefore the volumetric estimates of the prospective resources of PEL 0010 remain unchanged.

	Net Attributable Best Estimate			Aggregate Net Best Est	ECoS*	Net
Liquids phase	VO1	GC2	DG3			Risked
	mmstb	mmstb	mmstb	mmstb	%	mmstb
Maastrichtian	634	76	6	432	31.4	136
Palaeocene	988	71	8	661	18.7	124
Upper Campanian	125	16	1	85	8.7	7
Campanian Wedge	327	43	3	223	9.3	21
Albian	564	144	56	403	8.0	32
Total Welwitschia	2638	350	23	1805		320
Alpha Palaeocene	650	66	5	439	9.3	41
Gamma Palaeocene	213	21	2	144	11.8	17
	3501	437	30	2387		377
Gas phase	BCF	BCF	BCF	BCF	ECoS	BCF
Maastrichtian	968	2300	2340	1438	31.4	452
Palaeocene	1458	3380	3380	2131	18.7	398
Upper Campanian	192	432	458	279	8.7	24
Campanian Wedge	502	1166	1190	737	9.3	69
Albian	1014	2280	2460	1475	8.0	118
Total Welwitschia	4134	9558	9828	6059		1061
Alpha Palaeocene	1000	2440	2280	1486	9.3	138
Gamma Palaeocene	326	800	748	486	11.8	57
	5460	12798	12856	8032		1256
Total Welwitschia (MMBOE)†	3327	1943	1661	2814		496
Total PEL0010 (MMBOE)	4411	2570	2173	3726		587

*ECoS is derived from the GCoS multiplied by the economic probability

¹Volatile oil case

²Gas condensate case

³Dry gas case

^†MMBOE denotes millions barrels of oil equivalent

Commenting on the CPR update Graeme Thomson, CEO, stated: "Oilfield International's view of an increased probability of the Welwitschia and surrounding prospects containing volatile oil is welcome news and is aligned with our positive view of the results of the Wingat-1 well communicated to the market on 22 May 2013. As a result of the increased probability of a volatile oil case, their best estimate of net risked prospective resources being targeted with the Welwitschia-1 well, scheduled for Q1 2014, has increased from 458mmboe to 496mmboe. We believe that the shareholders of Tower Resources are exposed to one of the highest impact exploration wells scheduled for 2014 in sub-Saharan Africa".    

A copy of the full CPR update from Oilfield International is available on the company website at www.toweresources.co.uk.

In accordance with the AIM Rules - Guidance for Mining and Oil & Gas Companies, the information contained in this announcement has been reviewed and signed off by the Vice President - New Ventures, Mr. Nigel Quinton BA, MA, FGS, who has over 30 years experience as a geoscientist. He has compiled, read and approved the technical disclosure in this regulatory announcement. The technical disclosure in this announcement complies with the SPE/WPC standard.

Contacts

Tower Resources

Jeremy Asher (Chairman)
Graeme Thomson (CEO)

Andrew Matharu (VP - Corporate Affairs)
[phone]

Peel Hunt LLP

(Nominated Adviser and Joint Broker)

Richard Crichton/Charles Batten
[phone]

GMP Securities Europe LLP (Joint Broker)

Rob Collins/Liz Williamson
[phone]

M Communications

Patrick d'Ancona, Chris McMahon
[phone]

Notes:

Oilfield International is a privately owned energy consultancy founded in 1990 that has advised on oil and gas projects in over 40 countries. OIL's shareholders, management and staff are, and always have been, independent of shareholders, management and staff of Neptune Petroleum (Namibia) Ltd and Tower Resources Plc. 

This CPR Update was produced by three consultants: Mr David Curia, Mr Victor Ploszkiewicz and Mr Tim Lines. All hold degrees in geoscience or petroleum engineering. Messrs. Curia and Ploszkiewicz (both based in Buenos Aires) have extensive exploration experience on both sides of the South Atlantic rift.

Mr David Curia has 30 years' experience in geophysical interpretation and 3D modelling. He holds a M.Sc. in Geology, a M.Sc. in Mathematics from the University of Buenos Aires, and a "Post-Degree" in Geophysics (12 geophysical subjects examined over 18 months, without a doctoral thesis) from the University of Mendoza. He has held lectureships in Numerical Analysis and in Geostatistics. He is the author of over 20 papers for a.o. the European Association of Geoscientists and Engineers and the American Association of Petroleum Geologists.

Mr Victor Ploszkiewicz has 38 years' experience in geological interpretation and holds a M.Sc. in geology from the University of Buenos Aires. He was visiting professor in geology at the University of Mendoza. He is author of over ten research papers for a.o. the Society of Exploration Geophysics and the American Association of Petroleum Geologists. He is a Member of: The American Association of Petroleum Geologists (M.AAPG); The Society of Exploration Geophysicists (M.SEG); The Asociacion Argentina de Geologos y Geofisicos Petroleros (M.AAGyGP); and The Asociacion Geologica Argentina (M.AGA).

Mr Tim Lines has 31 years' experience in petroleum engineering and economic evaluation. He holds a B.Sc. in Chemistry from Bristol University, a M.Sc. in Petroleum Engineering from Imperial College and an MBA from Cranfield University. He is a Chartered Engineer registered with the UK Engineering Council since 1990 and has been Vice Chairman of the Society of Petroleum Engineers London since 2000. He is a Fellow of the Geological Society (FGS), a member of the Institution of Gas Engineers (M.IGEM), the Energy Institute (M.EI) and of the Institute of Materials, Minerals and Mining UK. He has the Freedom of the City of London as a Liveryman of the Worshipful Company of Fuellers.

 

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