Business
Uganda - Agreement With Orca
Uganda - Agreement With Orca.
About this update from Tower Resources Plc
[{"type":"text","content":"\n Tower Resources PLC\n28 August 2007\n\nPRESS RELEASE\n28 August 2007\n TOWER RESOURCES AND ORCA EXPLORATION\n JOIN FORCES IN UGANDA\n\nTower Resources ('Tower'), the AIM listed oil and gas exploration company, and\nits wholly-owned subsidiary Neptune Petroleum (Uganda) Limited ('Neptune') have\nreached agreement with Orca Exploration Group Inc. ('Orca'), a Toronto TSX\nVenture Exchange quoted oil company. Orca will have an option to fund 83.33% of\nthe expected cost of a commitment programme of seismic and two exploration wells\nto earn a 50% interest in Exploration Area 5, north western Uganda. The\nexploration area is currently licensed 100% to Neptune.\n\nUnder the terms of the agreement, Orca will fund 83.33% of certain back costs\nand a 2D seismic programme of 250-300 kilometres, expected to begin this coming\nSeptember, which fulfils the commitment of Neptune Petroleum relating to the\nfirst exploration period of the EA5 licence.\n\nOn completion of the interpretation of the seismic data, Orca will have the\nexclusive option to be assigned a 50% working licence interest in return for\ncontinuing to fund 83.33% of two exploration wells, expected to begin in\nmid-2008. Orca's financial contribution relating to the licence commitments is\nlimited to maximum amounts of US$5 million in respect of the seismic programme\nand an additional $10 million in respect of drilling and, if successful, $5\nmillion in respect of testing the two wells.\n\nIn the event that Orca exercises its option to become a 50% partner, Neptune\nwill continue to remain operator under the licence for a period of three years.\nHowever, Orca will assume management responsibility for all drilling activities.\nOrca operates the Songo Songo gasfield in Tanzania. Its principal corporate\noffice and operating base is in Dar-es-Salaam.\n\nTower's Executive Chairman, Peter Kingston, has welcomed the future involvement\nof Orca as a potential 50% partner in EA5. He said:\n\n'Orca has the same cultural philosophy as Tower in the approach to conducting\nbusiness in a community-friendly manner. Its significant experience of managing\noperations successfully in Tanzania and its belief in combining the strengths of\nboth parties in the management of business activities will be very positive for\nboth sets of shareholders. Uganda is entering a very exciting phase in it...