Tower Resources says that, all conditions relating to the farmout agreement between Arcadia Expro Namibia (Pty) Ltd ('Arcadia') and Repsol Exploration (Namibia) Pty Ltd ('Repsol') and with Tower's wholly owned subsidiary, Neptune Petroleum (Namibia) Limited ('Neptune'), to double Neptune's interest in Licence 0010, have now been completed.

Under the terms of the farmout agreement, Neptune has now released escrow funds of approximately US$5.3 million (£3.3 million) to reimburse Arcadia for 30% of Arcadia's past costs on the Licence and Neptune will assume 30% of costs from 1 July 2012.

With the transactions now completed, Repsol has assumed operatorship of Licence 0010 and the partners' interests are Repsol 44%, Tower 30% and Arcadia 26%.

Tower's CEO, Graeme Thomson, commented,'We are pleased that the agreements have now been completed. We look forward to updating the market as preparations are progressively made to drill the Welwitschia well on the multi-billion barrel prospect, formerly identified as the Delta structure. Planning for the well is now able to accelerate. Tower's CPR has identified five potential reservoirs within the structure. Tower's potential net risked resource is in excess of 540 million boe.'

Tags: Tower Resources plc