Business
Namibia Farmout
Namibia Farmout.
About this update from Tower Resources Plc
[{"type":"text","content":"\n Tower Resources PLC\n20 September 2007\n\n\nPRESS RELEASE\n20 September 2007\n\n\n TOWER RESOURCES: APPROVAL OF NAMIBIA FARMOUT\n\n\nTower Resources ('Tower'), the AIM listed oil and gas exploration company, has\nbeen advised that the Minister of Mines and Energy of the Republic of Namibia\nhas approved the farmout by Tower's wholly-owned subsidiary Neptune Petroleum\n(Namibia) Limited ('Neptune') of an 85% interest in its Licence, covering\noffshore blocks 1910A, 1911 and 2011A, to Arcadia Petroleum Limited (Arcadia).\nThe Minister has also approved the transfer of the Operatorship of the Licence\nto Arcadia.\n\nUnder the terms of the farmout, Arcadia has committed to fully fund a programme\nof activity in four parts which includes:\n\n * cost associated with shooting the recently completed 2-Dimensional seismic\n programme and further costs arising from its interpretation;\n * shooting and interpreting a 3-Dimensional seismic programme, presently\n contemplated in early 2008;\n * an exploration commitment well;\n * a second well which might be an appraisal well or a second exploration\n well.\n\nArcadia has the option to withdraw from its commitment at the end of each of\nthese four stages of operation or to assign all or part of its interest to a\nthird party agreeing to meet the funding commitment. In the case of withdrawal\nand failure to assign, the full 85% interest will revert to Neptune. Arcadia\nwill also reimburse 85% of certain historic costs to Tower.\n\nArcadia Petroleum Limited is a substantial trader of oil and related products.\nThey bring considerable financial strength to the Licence as well as access to\nvery relevant expertise in exploration, development and shipment of oil and\nnatural gas.\n\nPeter Kingston, Tower's Chairman has welcomed the introduction of such a strong\npartner. 'Arcadia shares Tower's belief that the Licence has the potential to\ncontain giant gas fields. In particular, the discovery of large volumes of gas\ncan be developed effectively given Arcadia's financial strength and its access\nto appropriate technology. Activity now promises to progress quickly and the\npotential of the Licence is genuinely exciting.'\n\nEnd\n\n\nFor further information, please contact:\n\nTower Resources plc www.towerresources.co.uk\nPeter Kingston, Chairman 07802 804852\n\nBlue Oar Securities\nRhodri Cruw...