Tower Resources PLC South Africa Update - Farm-out Process (4755B)
September 21 2018 - 1:00AM
UK Regulatory
TIDMTRP
RNS Number : 4755B
Tower Resources PLC
21 September 2018
21 September 2018
Tower Resources plc
South Africa Update - Farm-out Process
Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)),
the AIM-listed oil and gas company with its focus on Africa, is
pleased to provide the following update on its Algoa-Gamtoos
licence in South Africa, in which the Company holds a 50% interest
through its wholly owned subsidiary Rift Petroleum Limited
("Rift"), together with the Operator New Age Energy Algoa (Pty) Ltd
("New Age" or "Operator"), which holds the other 50% of the
licence.
New Age have appointed ENVOI Limited to conduct a farm-out
process on behalf of both New Age and Rift to seek a partner for a
material share of the licence working interest, in return for
funding a further 3D seismic survey over a portion of the Licence
area. The new 3D seismic survey would focus on the Gamtoos basin
and/or the South Outeniqua basin, the latter being part of the
slope margin play being targeted by Total, Exxon and Equinor in
adjacent acreage. Any prospects identified and high-graded during
the processing and interpretation of the new 3D dataset could
ultimately lead to a well being drilled in the 3(rd) Renewal
Period, presently due to end in December 2023.
In December 2017 Rift, together with the Operator, entered the
1(st) two-year Renewal Period, having integrated the results from
the reprocessed existing 2D seismic dataset together with the 2D
and 3D seismic survey acquired as part of the Initial Exploration
Period. The Operator's work during the Initial Exploration Period
and the current Renewal Period has led to the generation of an
enlarged inventory of prospects and leads across the three basinal
plays identified on the Algoa-Gamtoos block. The initial
(unaudited) prospective resources estimate, prepared to the SPE
resource classification standard by the Operator for the five
primary new prospects/leads identified during that process, is
summarised on an unrisked volumetric basis in the table below.
Prospect/Lead Basin Targets/Play Mean Prospective
Resources (unrisked)
(MMboe Recoverable)
=============== ================== =================== ======================
Roan Gamtoos 119
======================================= ======================
Reedbuck Gamtoos 67
======================================= ======================
Syn-Rift Basin
Steenbok Gamtoos Floor Strat trap 34
================== =================== ======================
Post-Rift Canyon
Canyon Algoa: Uitenhage fill 80
================== =================== ======================
Outenique Basin Post-Rift Canyon
Deep Albian Slope fed basin slope 210
================== =================== ======================
510
====================================================== ======================
This resource estimate and a more detailed exposition of the
Operator's latest view of the License and its prospectivity are set
out on the company's website at www.towerresources.co.uk/
Jeremy Asher, Chairman & CEO, commented:
"We are delighted with the encouraging work that the Operator
has performed on the Algoa-Gamtoos License and the appointment of
ENVOI to manage the farm-out process. We look forward to seeing
further 3D data which should enable us to identify, with our
partners, the best locations for drilling. We believe that each of
the three plays on the Algoa-Gamtoos license is interesting and any
one, or all three of them, can justify further exploration and we
look forward to providing further updates as the farm-out process
progresses."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Contacts
Tower Resources plc +44 20 7157 9625 info@towerresources.co.uk
Jeremy Asher, Chairman
and CEO
Andrew Matharu, VP Corporate
Affairs
SP Angel Corporate Finance
LLP
Nominated Adviser and
Broker +44 20 3470 0470
Stuart Gledhill
Caroline Rowe
ENVOI Limited +44 20 8566 1310
Mike Lakin
Notes:
Through its wholly-owned subsidiary, Rift Petroleum Limited,
Tower Resources holds a 50% interest in the Algoa-Gamtoos licence,
offshore South Africa. Tower acquired its non-operated interest in
the Algoa-Gamtoos licence through the all share acquisition of Rift
in April 2014.
The Algoa-Gamtoos licence covers 9,369 km(2) and is operated by
New Age Energy Algoa (Pty) Ltd (50%). This acreage straddles the
Algoa and Gamtoos basins on the shelf, as well as outboard slope
edge of the South Outeniqua Basin.
The Operator has identified five primary prospects and leads,
from the existing 2D and 3D seismic dataset, which are estimated to
contain a combined block-wide STOIIP of 1.4+ Billion bbls with mean
prospective resources in excess of 500 Million bbls (recoverable)
with further upside, which new 3D seismic data is expected to
better quantify.
In accordance with the guidelines for the AIM market of the
London Stock Exchange, Dr. Mark Enfield, BSc Geology, PhD Geology,
Advisor to the Board of Tower Resources plc, who has over 30 years'
experience in the oil & gas industry, is the qualified person
that has reviewed and approved the technical content of this
announcement.
Glossary:
Prospective Resources
Those quantities of petroleum estimated, as of a given date, to
be potentially recoverable from undiscovered accumulations by
application of future development projects.
Unrisked
Quantities which have not been adjusted for the probability of
loss or failure i.e. Risked. Where Risk is defined as the
probability of loss or failure. Risk is not synonymous with
uncertainty. Risk is generally associated with the negative
outcome, the term "chance" is preferred for general usage to
describe the probability of a discrete event occurring.
Recoverable
Those quantities of hydrocarbons which are estimated to be
producible from accumulations, either discovered or
undiscovered.
STOIIP
Stock Tank Oil Initially In Place
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contact rns@lseg.com or visit www.rns.com.
END
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