Tower Resources provides Namibia and Uganda update
  by: OilOnline
  Thursday, May 15, 2008

In Namibia seismic interpretation has confirmed the presence of giant structures which could contain 10 billion barrels, unrisked, from three prospects.  In Uganda processing and interpretation of seismic is continuing and a well is being planned before the end of 2008.

Namibia: Seismic Interpretation Completed
Tower Resources announces that Arcadia Petroleum Limited, as operator of Licence 0010 in northern offshore Namibia, in which Tower retains a 15% carried interest, has completed the interpretation programme subsequent to the 2-D seismic acquisition survey shot in September 2007. The results confirm the presence of giant structures and indicate a significant probability that these would be oil bearing. Arcadia has calculated that, on a heavily discounted basis for reservoir parameters which contribute to volume, reserve potential is of the order of 10 billion barrels in three giant prospects. Large volumes of associated gas would also be present. These volumes have not been further discounted for exploration risk, however, the AVO (Amplitude Variation with Offset) analysis and geological modelling has been very rigorous providing significant comfort that the chance of success is favourable in terms of global success rates. A presentation has today been posted on th e Tower website which provides pictorial seismic and AVO data which supports these exciting conclusions.

The main factors underlying the interpretation are as follows:
• Four way dip closure has been confirmed on the Alpha structure indicating a maximum area of more than 600 square kilometres
• Four way dip closure is indicated on the Gamma structure which, if confirmed, would define a prospect having an area of more than 1700 square kilometres
• AVO analysis and geological modelling have pointed to three sandstone reservoirs up to 50 metres thick which correlate with sandstones in the two exploration wells drilled in the 1990's
• AVO analysis has concluded that there are strong hydrocarbon indications and good quality reservoirs in conjunction with the prospective structures but no hydrocarbon indications at the locations of the two unsuccessful wells
• Reservoir sands are interpreted to be stacked channel sands having laterally variable reservoir characteristics but high quality over significant areas.
Future plans are being finalised for the next year to significantly increase seismic coverage over the three large prospects with a view to drilling a first well within the next two years.

Uganda: update
Processing and interpretation of the Uganda seismic is continuing and should be complete by the end of May. Current conclusions point to primary targets within sediments up to 1500 metres thick which are broadly analogous to the shallow potential currently the subject of intense exploration in northern Block 2 and Block 1 immediately to the south of Tower's Block 5. It has been announced this week that Tullow Oil has discovered oil and gas in its Taitai-1 well near Butiaba. Planning and preparations are geared to Tower drilling its first well in Block 5 before the end of 2008. A more detailed update will be provided once remaining interpretation work is completed. The reference presentation provides new inform ation about the seismic interpretation work to date.

Tanzania
Tower has entered into discussions with the Tanzania Petroleum Development Corporation with a view to agreeing a Production Sharing Agreement for the frontier Exploration Area consisting of Lakes Eyasi-Wembere, Manyara and Natron.

Tower is intending to give an up to date presentation of its operations to the "Oilbarrel" forum on 22nd May 2008.

Peter Kingston, Tower's Executive Chairman stated that "The exciting conclusions of the Namibia interpretation work have added another world class dimension to the Company's prospects. The Uganda Licence is being confirmed as a prospective venture and Tanzania begins to broaden the portfolio. The next two years promise to be a fascinating period of potentially company-making activity".

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