Tower Resources completes Neptune farm-out agreement

Oil and gas company Tower Resources said Thursday all conditions relating to the farm-out agreement bewteeen its subsidiary Neptune Petroleum and Arcadia Expro Namibia and Repsol Exploration were completed.

As part of the agreement, Neptune released escrow funds of $5.3m to reimburse Arcadia for 30% of the costs on the licence. Neptune will assume 30% of costs from July.

Repsol has a majority stake of licence 0010 with a 44% interest. Tower holds 30% while Arcadia has a 26% ownership.

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"We are pleased that the agreements have now been completed," said Tower's Chief Executive Officer, Graeme Thomson.

"We look forward to updating the market as preparations are progressively made to drill the Welwitschia well on the multi-billion barrel prospect, formerly identified as the Delta structure.

He said planning for the well was underway and five potential reservoirs were identified within the structure.

Shares climbed 1.05% to 2.40p at 12:39 Thursday.

RD