Tower Resources Makes Deal With Global On Uganda Project

25th Jun 2010 07:17

LONDON (Dow Jones)--Tower Resources PLC (TRP.LN), an independent oil and gas exploration company, said Friday it has reached agreement with Global Petroleum Ltd. (GBP.AU) 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 continuing right to convert its investment in the project to date into a 25% legal and beneficial interest in Uganda License EA5. -Under the terms of the agreement, Global shall 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. -The current operational status is that the aero gravity gradiometry survey is nearly 30% complete and interpreted data should be available within a month - planning for the follow up seismic survey has begun. -A number of third parties are reviewing the data with a view to proposing funding of the future seismic program and the commitment well. -Shares closed Thursday at 1.68 pence. -By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; [email protected] (END) Dow Jones Newswires June 25, 2010 02:17 ET (06:17 GMT)