Tower Resources PLC Badada-1 Well Site Preparation and Rig Contract (5690Z)
December 12 2014 - 2:00AM
UK Regulatory
TIDMTRP
RNS Number : 5690Z
Tower Resources PLC
12 December 2014
Tower Resources plc
Badada-1 Well Site Preparation and Rig Contract
12 December 2014
Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)),
the AIM-listed Africa-focussed oil and gas exploration company,
notes the announcement dated 11 December 2014 from the Operator,
Taipan Resources Inc. (("Taipan") (TSX-V: TPN)), relating to the
Badada-1 well operations, onshore Kenya (Tower 15%, Premier Oil 55%
and Taipan 30% working interests).
Lawyers representing Taipan's wholly-owned Kenya-based
subsidiary, Lion Petroleum Inc. ("Lion"), together with Taipan,
Premier Oil plc, the County Government of Wajir, the Ministry of
Energy and Petroleum, the Attorney General and the National Land
Commission appeared in the High Court of Kenya on 10 December 2014
where they received confirmation of the amendment to the injunction
served on 17 November 2014 which had allowed work to continue at
the Badada-1 well-site. A further hearing is scheduled after the
projected completion of the well, but will not affect our drilling
timetable.
In addition, Taipan, on behalf of the Block-2B joint-venture
partners, have executed a contract with Greatwall for the GW-190
land rig and have also contracted Aberdeen-based Norwell
Engineering to manage the drilling operations of the Badada-1 well.
The GW-190 land rig recently completed the drilling of the Sala-1
discovery in Block-9 of Anza Basin, Kenya, adjacent to
Block-2B.
Further to the Company's announcement on 27 November 2014,
Taipan has advised that drilling is expected to commence in early
January 2015. The well is expected to take approximately 70 days to
drill and gross well costs are estimated at US$20 to US$25 million
(US$3.0 to US$3.75 million net to Tower).
The Badada-1 well will test analogous geology to the Lokichar
Basin where Tullow Oil and Africa Oil continue to unlock the
potential of the Tertiary Rift sequence. The well is designed to
test the Tertiary age reservoirs with the total depth of the well
planned between 3,000 to 4,000 metres.
Taipan's estimate of gross mean unrisked prospective resources
for Badada-1 is 251mmboe (Source: Sproule International Limited
("Sproule") February 2014). This compares with Tower's estimate of
gross unrisked prospective resources ranging from 402mmboe (P10) to
16mmboe (P90) with a Pmean of 169mmboe and reflects its more
conservative approach to the extent of the Badada structure. In the
event of success with the Badada-1 well, we envisage material
upside potential in Block-2B with multiple follow-on prospects and
leads in a Tertiary sequence analogous to the Tertiary discoveries
in Block 10BB and 13T of the Lokichar Basin.
As part of the Operator's focus on local content a number of
Kenyan companies have been contracted to provide well-site services
including logistics, road repairs and the drilling of water wells
and other services. In addition, as part of the programme of
corporate social responsibility in the Anza Basin, the Operator has
embarked on a number of initiatives including clean water projects
and access to basic medical care for the local community.
Graeme Thomson, CEO, commented "Well-site preparations are
gathering momentum for the drilling of the Badada-1 well during
this exciting time for Tower's shareholders which will see the
Company drill its first frontier exploration well in Kenya in early
January 2015. Success with Badada-1 would de-risk our subsurface
thesis of the Anza Basin and result in material potential upside in
Block-2B with further exploration drilling in 2016/17."
Contacts
Tower Resources
Graeme Thomson (CEO)
Nigel Quinton (Head of Exploration)
Andrew Matharu (VP - Corporate Affairs)
+44 20 7253 6639
Peel Hunt LLP (Nominated Adviser and Joint Broker)
Richard Crichton/Charles Batten
+44 20 7418 8900
GMP Securities Europe LLP (Joint Broker)
Rob Collins/Liz Williamson
+44 20 7647 2800
Vigo Communications
Chris McMahon/ Peter Reilly
+44 20 7016 9572
Notes
In accordance with the guidelines for the AIM market of the
London Stock Exchange, Nigel Quinton, BA, MA, FGS, Head of
Exploration for Tower Resources plc, who has over 30 years'
experience in the oil & gas industry, is the qualified person
that has reviewed and approved the assessment of the Company's
estimate of the resource potential set out above.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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