News

June 17, 2009

Tower Resources Hit By Iti-1 Well Result

Backers of Tower Resources’ exploration campaign in Uganda came back down to earth with a bump on Monday when the Iti-1 wildcat proved dry, sending the share price into a nosedive. The shares slid almost 45 per cent on Monday to close at 2.04 pence.

This was always going to be a high risk venture. Much as the AIM firm was keen to link its 6,040 sq km EA5 block at the northern end of the Albertine Graben to the spread of oil discoveries made by Tullow Oil and Heritage Oil in Blocks 1 and 2 to the south, there was in fact 80 km separating the two exploration campaigns and doubts about the reservoir quality of the very shallow targets in Tower’s acreage. Even so, seismic work had revealed similarities between the EA5 prospects and some of the...