Business
Acquisition of interest in Madagascan Licence
Acquisition of interest in Madagascan Licence.
About this update from Tower Resources Plc
[{"type":"text","content":"\n \nRNS Number : 4596I Tower Resources PLC 03 July 2013 \n \n\n3 July 2013\n \nTower Resources plc\nAcquisition of carried 20% interest in Madagascan Licence \nTower Resources plc (\"Tower\" or the \"Company\"), (TRP.L, TRP LN), the AIM listed Africa focussed oil and gas exploration company, is pleased to announce the acquisition of a 20% carried interest in Marovoay Block-2102, onshore Madagascar. The acquisition is being effected through the acquisition of Wilton Petroleum Limited (\"Wilton Petroleum\"), a private UK registered exploration company.\nWilton Petroleum's sole asset is a 20% carried interest in Marovoay Block-2102, onshore Madagascar, in the Majunga Basin, which is operated by Ophir Energy plc through its subsidiary Ophir Madagascar Limited (\"Ophir Energy\", 80%). Block-2102 covers an area of 8,444 km2 and possesses prospectivity across multiple play types within the Jurassic and Cretaceous age sequences. The first exploration well in Block-2102 is due to be drilled by mid-2014. It will target the Anjohibe prospect with mean prospective resources of c. 90mmbbls* of what is expected to be light volatile oil in Jurassic and Cretaceous plays. These are the onshore equivalent of the deep-water plays being explored by ExxonMobil in the Ampasindava Block to the north. This is one of over 20 prospects identified on the block.\nWilton Petroleum's 20% interest in Block-2102 is carried for up to two exploration wells by Ophir Energy, with each well carry capped at a net value of US$4 million.\nTower is acquiring the entire share capital of Wilton Petroleum for an initial consideration of US$1.75 million in cash and 120 million ordinary shares in Tower, equivalent to approximately 7% of Tower's issued share capital post completion. At yesterday's closing share price of 1.6p per Tower share this values Wilton Petroleum at US$4.7 million compared to the cash value of the first well carry of US$4 million. The consideration shares are subject to a 12 month lock-in period. Tower will also make a deferred additional payment to Wilton Petroleum's shareholders of US$4 million, to be paid in cash, Tower shares or a combination of both at Tower's discretion, on the spudding of the second carried well on Block-2102. The deferred consideration is equivalent to the cash value of the second carry and will only be ...