--ADDS BROKER COMMENT--
Excitement is growing for the drilling of the Welwitschia-1 well offshore Namibia as the Rowan Renaissance drillship has now arrived.
The new build ship will now be prepared and tested by Repsol, which has it on a three year contract, and it is expected to begin work on Welwitschia-1 on or around 11 April.
It is expected that the well will spud one week thereafter.
On AIM, Tower shares advanced over 7% this morning to trade at 5.58p each.
“2014 is all about the Welwitschia-1 well and shares have risen to within proximity of our price target range (5.6p-9.4p) on anticipation of the spud,” Northland Capital analyst Andrew McGeary said in a note.
“Despite Tower’s strong recent run, the well maintains potential to be a company maker.
“Conversely, whilst a negative result would not entirely destroy the company, a dry hole could remove the majority of value from the shares.”