Sub-Saharan focused Tower Resources (LON:TRP) still plans its first offshore well in Namibia by the end of 2011, the company revealed today.
The announcement came in an update of the firm's operations in Namibia and Uganda. In regard to Uganda, the firm said that a letter of intent prior to a contract for a 2-D seismic programme of 150-200 kms had been signed.
Executive chairman Peter Kingston said of the two developments:
"I am pleased to confirm that the first well in Namibia, to test the huge potential of the Delta prospect, remains a target within a year.
"The 3-D seismic interpretation has confirmed the 2-D seismic interpretation but has also opened up significant potential from additional reservoirs.
"I am also pleased that the Uganda seismic and well programme is still on schedule."
Tower reported that at the licence 0010, offshore Namibia, interpretation of the 3-D seismic is well advanced.
Clear structural closure, sustained reservoir thickness and direct hydrocarbon indicators - AVO anomalies and pock marks - have been confirmed at the main Maastrichtian prospect level. The Palaeocene horizon also showed potential and two other formations deeper than the Maastrichtian.
Arcadia Petroleum Limited - the operator of the licence - is funding Tower for the cost of the first well and is making progress to put in place funding and to contract a deep water drilling rig, said Tower.
In Uganda, a letter of intent in advance of a contract for the 2-D seismic programme of 150-200 kms has been signed with TESLA-IMC International Limited and line clearance is expected to begin by late April, said Tower. Completion is targeted for the end of June this year.
In addition a high density geochemical survey, conducted by GORE Geochemical Surveys, is also underway over the prospect area together with focused sampling around the two existing wells and an oil-bearing well in EA1.
Tower said that now the political uncertainty with respect to long term development planning in Uganda appeared to have been resolved, a final phase of the farm out programme has begun.
The Tower board has raised the additional equity capital required to undertake the seismic programme on schedule and a well can still be drilled in October 2011, subject to rig availability. If the cost of seismic is subsequently met by a third party, the funds will be deployed on new projects, it added.