Global Petroleum Reaches Pact With Tower Resources For Uganda Project

25th Jun 2010 09:26

LONDON (Dow Jones)--Global Petroleum Ltd (GBP.AU), an Australian based oil and gas company, said Friday it has reached agreement with Neptune Petroleum (Uganda) Ltd, a subsidiary of Tower Resources PLC (TRP.LN), whereby Global will have a continuing option to participate in the Uganda project whilst having no current obligation to contribute to ongoing expenditure. MAIN FACTS: -The agreement provides Global with a right to convert its investment in the project to date into a 25% legal and beneficial interest in Uganda License EA5. -Under the agreement, Global will have the right to elect to participate until such time that Tower has obtained a firm offer of funds, from a third party or through its own fund-raising efforts, to fund any material operation in respect of the license. -Global will be required to reimburse Tower for 25% of ongoing costs during the option period should it elect to participate and, in the event of third party funding, Global will dilute proportionately with Tower. -Shares of Global at 0817 GMT down 0.13 pence or 1.47%, at 8.4 pence, valuing the company at GBP14.6 million. Shares of Tower unchanged at 1.7 pence, valuing the company at GBP16.9 million. --By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, [email protected] (END) Dow Jones Newswires June 25, 2010 04:26 ET (08:26 GMT)