Tower Resources jumps despite drilling delays

21st May 2014 11:34

Shares in Africa-focused oil and gas explorer Tower Resources bounced despite announcing a delay to the drilling of its Welwitschia-1 well offshore Namibia due to technical issues with the drilling equipment. The AIM-listed company said the financial impact on itself would "not be material", with operator Repsol and driller Rowan to bear the brunt, but Tower said it did not expect drilling operations to recommence until the end of the month.Chairman Jeremy Asher said it was "not unusual to encounter technical issues with new equipment" and in particular blow-out preventers onboard a new drill-ship such as is being used. However, he stressed confidence that Repsol and Rowan will resolve the BOP issues shortly. "These issues have no connection with the prospects for the well itself, which remain as exciting as ever". Shares in Tower were up 10.19% to 2.98p at 11:19 on Wednesday. OH