Tower Resources PLC (AIM: TRP) announced that the Iti-1 exploration well in Uganda Licence EA5 has come up dry. Tower is the operator and has a farm-in agreement in place for the licence with Global Petroleum Ltd (ASX, AIM: GBX).
Tower was down 43 percent in early London trade on the news, while Global Petroleum was 25 percent lower.
In a statement Tower said the well did not encounter any producible reservoir sands at the Iti-1 location. A complete re-evaluation of the well data, combined with all other available technical data, will be undertaken as a priority to determine a more prospective location for a second well.
The lack of reservoir at this location could not justify further testing or the immediate move to drill a second well, it added.
Tower chairman Peter Kingston said: “The result is very disappointing. However, this is a very large licence and there is every chance that far better reservoir sand quality can be found elsewhere in EA5. There is much to learn from this first well which will help with future exploration activities on the Licence.”