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Tower Resources says drilling has started on "potential play-opener"

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Africa-focused oil and gas exploration company Tower Resources (LON:TRP) said drilling has started on the Badada-1 well, onshore Kenya.

The well is in block-2B, in which Tower has a 15% interest; Premier Oil has a 55% interest while operator Taipan Resources owns the rest.

Tower's estimate of the gross unrisked prospective resources to be tested by Badada-1 ranges from 16mln barrels of oil equivalent (mmboe) on a P90, or proven reserves, basis to 402mmboe on a P10, or possible reserves, basis.

This compares to the operator's gross mean unrisked recoverable resources estimate of 251mmboe (Source: Sproule International Limited, February 2014).

Premier plans to drill the well to a total depth of between 3,000 and 4,000 metres to test Tertiary age reservoirs analogous to those in the Lokichar basin where Tullow Oil and Africa Oil have made discoveries with best estimate unrisked gross (2C) contingent resources totalling 616mln barrels (Source: Africa Oil Corp. Corporate Presentation dated September 2014).

Taipan expects drilling to take up to 70 days to complete and Tower intends to provide updates on progress to the market every fortnight.

"The spudding of the Badada-1 well marks an important milestone in this frontier exploration basin. Badada-1 is a potential play opener, which if successful, will de-risk other prospects and leads in Block-2B and generate considerable upside from a follow-on exploration programme in 2016/17,″ said Graeme Thomson, chief executive of Tower.

Shares in Tower finished the day up 7.9% at 0.701p.

Quick facts: Tower Resources PLC

Price: 0.475 GBX

AIM:TRP
Market: AIM
Market Cap: £5.25 m
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