Tower Resources PLC South Africa update (7810I)

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RNS Number : 7810I

Tower Resources PLC

16 December 2020

16 December 2020

Tower Resources plc

("Tower" or the "Company")

South Africa update

Tower Resources plc (TRP.L, TRP LN), the AIM listed oil and gas company with its focus on Africa , is pleased to announce that its subsidiary Rift Petroleum Ltd ("Rift"), together with Operator and 50% partner New Age Energy Algoa (Pty) Ltd ("New Age"), has now formally agreed to enter the Second Exploration Period of the Algoa-Gamtoos license offshore South Africa. The Company also notes the recent announcements from Total S.A. ("Total") and Africa Energy Ltd ("Africa Energy") regarding the results of the Luiperd-1X well, which has reported a further significant gas condensate discovery in Block 11B/12B (Total 45% and Operator, Qatar Petroleum 25%, CNR International 20% and Main Street 1549 Proprietary Ltd 10%) located in the Outeniqua basin, offshore South Africa.

The Second Exploration Period of the Algoa-Gamtoos License will run for two years from 17 November 2020, and the work programme during this period will include a further 300 km(2) of 3D seismic data acquisition in the license area.

Block 11B/12B is located adjacent to the Algoa-Gamtoos license. The Algoa-Gamtoos license also contains the southern deep-water basin margin of the Outeniqua Basin that was targeted by Total's Brulpadda and Luiperd-1X wells and is approximately 150 kms along strike to the East.

The Luiperd-1X well encountered 73 meters of good quality net pay in 85 meters of gross sands in the main target interval and, according to Africa Energy which owns 49% of Main Street 1549 Proprietary Ltd, the well reached a maximum constrained flow-rate through a 58/64" choke of 33 million cubic feet per day of natural gas ('MMcfpd') and 4,320 barrels of condensate per day ('bcpd'), an aggregate of approximately 9,820 barrels of oil equivalent per day ('boepd'). The choke configuration could not be increased due to surface equipment limitations. The absolute open flow ('AOF') potential of the well is expected to be significantly higher than the restricted test rates. Current indications are that the Luiperd discovery is larger than the 1 billion boe Brulpadda discovery announced in 2019.

As previously noted, the Brulpadda and Luiperd-1X wells have successfully tested the Lower Cretaceous turbidite fan play of the Outeniqua basin slope, which is interpreted to extend along strike into the southern part of the Algoa-Gamtoos block, in which the Operator, New Age, has identified on 2D seismic a substantial prospect.

New Age has reprocessed the existing 2D seismic data over the license during 2020, which has yielded a considerable improvement in resolution, and expects to have updated analysis and volumetrics available in January 2021, which will also be made available to potential farm-in partners. The Company will update the market further when it receives this analysis.

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             [phone] 
 Jeremy Asher 
  Chairman and CEO 
 
   Andrew Matharu 
   VP - Corporate Affairs 
 
 SP Angel Corporate Finance 
  LLP 
  Nominated Adviser and Joint 
  Broker                         [phone] 
 Stuart Gledhill 
  Caroline Rowe 
 
 Turner Pope Investments 
  (TPI) Limited 
  Joint Broker 
  Andy Thacker 
  Zoe Alexander                  [phone] 
 Panmure Gordon (UK) Limited 
  Joint Broker 
  Nick Lovering 
  Hugh Rich                      [phone] 
 

Notes:

In accordance with the guidelines for the AIM market of the London Stock Exchange, Dr. Mark Enfield, BSc Geology, PhD Geology, a Director 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.

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December 16, 2020 02:00 ET (07:00 GMT)