News

April 08, 2009

Tower Resources Confirms May Spud Date For Key Uganda Well

Shares in Tower Resources have enjoyed a mini-rally in recent months, with another 11 per cent gain in morning trading on Wednesday as the company confirmed a rig contract for its first well in Uganda. The MBU-125 land rig will mobilize from Sudan to drill the Iti-1 well in EA5 licence in northwest Uganda, arriving at the well site in early May. This would see the wildcat start drilling in mid-May in a further test of the Albertine Graben, which has proved so prolific for fellow explorers Tullow Oil and Heritage Oil.

It is, of course, the success of those two companies, which have clocked up a 100 per cent strike rate and are on track to unearthing a billion barrel resource on their Lake Albert licences, that has sparked such investor interest in Tower’s otherwise high risk venture.  No doubt mindful of the transformational impact of the Tullow/Heritage campaign, investors backed Tower’s fundraising efforts in January, which was increased from £360,000 to £500,000.  The fundraising involved the...