Tower Resources has agreed, subject to the requisite regulatory approvals, to take a 44% working interest in the Namibian offshore licence 0010 and the related petroleum agreement (the "Licence") and become operator.

Tower's subsidiary, Neptune Petroleum (Namibia) Limited ("Neptune"), has also entered into a farm out agreement (the "Farm-out Agreement") with Arcadia Expro Namibia (Proprietary) Ltd ("Arcadia") to convert Tower's 15% carried interest in the Licence to a 30% working interest, subject to the requisite regulatory approvals. Under the terms of the Farm-out Agreement, Neptune is liable to reimburse to Arcadia 30% of Arcadia's past costs on the Licence, amounting to approximately US$5.3 million (£3.4 million) and will assume 30% of future costs.

Tags: Tower Resources plc