Slide 1: Tower Resources plc (TRP) - Exploring for Oil in Africa
Tower Resources plc (TRP) Exploring for Oil in Africa May 2008
Slide 2: Company Description
Company Description • Tower Resources (TRP) is an AIM-listed oil & gas exploration company focused on frontier areas in Africa • NPL has two frontier African exploration licences with potential to deliver company making discoveries • Evaluation work has confirmed the exciting prospectivity of both L
Slide 3: Leveraged to Success
Leveraged to Success • Both Uganda and Namibia have company making potential • Exploration wells to be drilled in Uganda within one year and in Namibia within two years • Both licences are now being largely funded by third parties • Orca have funded most of the recently completed 2D seismic programm
Slide 4: Funding
Funding • Tower has market capitalisation of £17 million and has no debt • Continued funding by third parties would limit the need for new capital during 2008 to the Company’s share of operational costs in Uganda • Orca need to decide on their future in Uganda by about end-June 2008 • Should Orca de
Slide 5: Uganda - Block EA5 Basin Map
Uganda –Block EA5 Basin Map • Part of Albertine Rift system • Discoveries at Mputa, Nzizi and Waraga are being developed • Kingfisher discovery. Large structure, major potential. 3D- seismic completed, appraisal planned Q2 2008. • Delay to the high impact Ngassa well under Lake Albert • Active explo
Slide 6: 2007/8 Seismic Programme, 302 line km completed and processed
2007/8 Seismic Programme, 302 line km completed and processed
Slide 7: Graben section confirms significant structural inversion has occurred
Graben section confirms significant structural inversion has occurred (depression and subsequent uplift) 5 km Figure 7: Final PSTM stack – Line EA5-07-08
Slide 8: Geological structures within the sedimentary section have been defined
Geological structures within the sedimentary section have been defined in useful detail 5 km Figure 8 Final PSTM stack - Line EA5-07-03ext
Slide 9: Interpretation focused upon deeper and older (source) section
Interpretation currently focused upon the probability of deeper and older (source) section Figure 9: Slow velocity stack – Line EA5-07-07
Slide 10: Rhino Camp Basin Structure Map from seismic data
RHINO CAMP BASIN STRUCTURE MAP from seismic data Previously implied structural targets confirmed and details now strengthened
Slide 11: EA5 combined geophysical interpretation
EA5 combined geophysical interpretation • First phase gravity and seismic studies now completed • Large geological structures initially indicated by gravity model now confirmed by seismic results • Potential drilling targets now being assessed and prioritised according to geological factors • Target
Slide 12: Current programme of exploration
Current programme of exploration Present exploration programme to June 2008 includes – • Specifically controlled processing of lower part of seismic section • Geological studies to relate Rhino Camp basin to the Albert Graben section • Geochemistry survey to map surface hydrocarbon traces and rank p
Slide 13: Uganda Activity 2008/2009 Source of significant news flow
Uganda Activity 2008/2009 Source of significant news flow RHINO CAMP BASIN Tullow E IL N RT ARUA • Seismic completed and 6 wells planned BE "u o 5 AL in north of block 2 Drill Q4 2008 • Major Ngassa prospect delayed • Development programme underway • Discovery with first well in Butiaba PAKWACH BASI
Slide 14: Namibia Overview
Namibia Overview • Vast unexplored territories Sintezneftgaz Circle • Growing number of oil companies Greendale operating in the country Arcadia Namcor • Sintezneftgaz currently drilling 150 kms north of Tower Licence Enigma INA • Stable democratic system of Enigma Hunt government Greendale Namcor I
Slide 15: Gondwana 200 Million years ago
Gondwana 200 Million years ago Brazil Tupi, Sugar Loaf Jupiter discoveries Namibia Site of Walvis Ridge Passive margin deposition started upon opening of the south Atlantic
Slide 16: Namibia Project Status
Namibia Project Status • Arcadia are currently funding and operating all activities • Interpretation of bought and new seismic data has identified four commercial scale prospects in the north of the Licence • Geochemical studies have confirmed maturity of four potential source rocks – some areas of
Slide 17: Past Exploration
Past Exploration • 2 wells drilled by Norsk Hydro • Both wells bottomed in Lower Cretaceous volcanics • Well developed sandstone reservoirs at three levels • Encountered source rocks at three horizons • No test of deeper Cretaceous or Jurassic • Residual light oil saturations up to 40% in Albian car
Slide 18: Current Overview of License 0010
Current Overview of License 0010 • Tower 15% carried interest in three blocks located on the Walvis ridge. This is the highest structural point between Angola and South Africa • Blocks of 20,000 sq Km area encompass a huge regional structural closure 200 Km long by 60 Km wide with 3 large structural
Slide 19: Blocks and Structural Prospects
Blocks and Structural Prospects 3 4 2007 survey
Slide 20: 2007 2D Seismic Programme
2007 2D Seismic Programme 24900 49300 Tower Resources Meters n n n cee a tere n eet n J = 7887000 R + + + + + 7262000 + + + % La + 78370004 + + + qeqino- oN“ ODP1081A ae 4 o ° =, ° eo se % 4 % s 78120004 « + + 79411151 % “s ° os 4 "Ze a %, 3 % s z % HEE + + + + + + ° + ee et s A
Slide 21: Line 14
Line 14 Well 1911/15-1 Well 1911/10-1 No anomalies at well No anomalies at well Undrilled intra graben structure AVO anomaly In thin ponded clastics
Slide 22: Namibia License 0010 new seismic interpretation
N S Namibia License 0010 new seismic interpretation Alpha Gamma W E W E Alpha Gamma
Slide 23: Namibia AVO analysis
Late Maastrichtian to Eocene-Oligocene Early Palaeocene Late Palaeocene Late Albian 50 Km Line 03 Structure Alpha and reservoirs Namibia AVO analysis Line 03 EO LP MP C A 100 Km older basin Line 04
Slide 24: Eocene-Oligocene Depth closure Late Palaeocene
Eocene-Oligocene Depth closure Late Palaeocene Depth closures Late Maastrichtian- Early Tertiary Depth closures
Slide 25: Prospect Alpha overview
Prospect Alpha overview • Excellent quality data • Structural trap – 4 way closure with strong Class 2 and Class 3 positive AVO anomalies • Three stacked good quality reservoirs would support high level production • Upside potential in a fourth deeper more localised reservoir (not included in reserv
Slide 26: Prospects Beta, Gamma and Delta Scoping reserves upside
Prospects Beta, Gamma and Delta Scoping reserves upside Beta extension possibly 200 mmbo recoverable Gamma possibly 4500 mmbo recoverable Delta possibly 3000 mmbo recoverable Above figures are also heavily discounted by 50% on reservoir and again by a further 80% on all geological parameters
Slide 27: Alpha and Gamma scoping volumetrics
Alpha and Gamma scoping volumetrics A further 80% discount of volumes in Alpha = 1.7 Bn bbl A further 80% discount of volumes in Gamma = 4.5 Bn bbl
Slide 28: Summary
Summary • Exciting groundfloor exploration in two highly prospective areas • Proven track record of management and board • Significant all round progress being made on both ventures • Huge market leverage to any success • An exciting exploration company chasing high potential plays in two of the wor
Slide 29: Important Notice
Important Notice This document is the sole responsibility of Tower Resources plc (the “Company”). Blue Oar Securities Plc (“BOS”), which is authorised and regulated by the Financial Services Authority, is acting as the nominated adviser and broker to the Company. The information contained in the pre