StockMarketWire.com - Tower Resources [LON:TRP] has reached agreement with Repsol Exploration (Namibia) (Pty) Limited relating to the disputed costs associated with the drilling of the Welwitschia prospect, offshore Namibia.

As announced on 3rd September 2014, the Operator's estimate of well and other related costs for the drilling of the Welwitschia prospect, which had been completed on 15th June 2014, had increased to $33.0 million net to Tower.

At that date, Tower's subsidiary, Neptune Petroleum (Namibia) Limited ("Neptune"), had settled $25.3 million of these costs.

Following amicable discussions with the Operator, agreement has been reached settling Neptune's share of costs at $28.3 million. Consequently, a final cash payment of $3.0 million is being made by Neptune in full and final settlement of all costs associated with the well and the Licence exploration period which ended on 22nd August 2014. This represents a net reduction of $4.7 million against the previous estimate.

A firm budget has been agreed for the next exploration period which extends to 22nd August 2015. This work programme is designed to obtain a fuller understanding of the results of the well and of its implications for the remaining prospectivity of the Licence, especially the large untested deeper targets, including the Albian carbonates, now there is a well-tie to the existing 3D seismic.

Following the final $3.0 million payment, Tower's cash position will be approximately $7.5 million. The Company is adequately funded for its remaining commitments with respect to the drilling of the Badada-1 well, onshore Block-2B, Kenya, which is expected to spud by early January 2015 and for which further cash costs of $1.9 million are budgeted.

* * *

BP [LON:BP.] has confirmed the allotment and issue of 13,652,530 ordinary shares to shareholders who elected to receive ordinary shares under the scrip dividend programme as an alternative for the third quarter interim dividend payable today.

* * *

Oilex Ltd [LON:OEX] advises that its Share Purchase Plan (SPP) closed on 16 December 2014. Applications have been received for a total of approximately A$1,671,000 under the SPP (using the exchange rate applicable to the SPP of A$1:GBP0.55).

Underwriters Patersons Securities Limited and DJ Carmichael Pty ("Underwriters") have been notified of the resulting shortfall of A$829,000 which will be taken up by the Underwriters and sub-underwriters to the SPP. This will result in a total fundraise of A$2.5 million before expenses.

* * *

The sector's biggest riser was Afren [LON:AFR] - up by more than 15% in late trading - while the biggest faller was Regal Petroleum [LON:RPT] - down by more than 16%.

At 3:49pm:

[LON:AFR] Afren PLC share price was +6.35p at 47.63p

[LON:AUR] Aurum Mining PLC share price was +0.01p at 1.13p

[LON:BOR] Borders Southern Petroleum PLC share price was +0.69p at 6.24p

[LON:BP.] BP PLC share price was +11.53p at 414.08p

[LON:CHAR] Chariot Oil Gas Ltd share price was +0.15p at 8p

[LON:DGO] Dragon Oil PLC share price was -5.25p at 509.75p

[LON:ENQ] EnQuest Plc share price was +2.53p at 41.28p

[LON:FOGL] Falkland Oil Gas Ltd share price was +1.5p at 23.5p

[LON:GKP] Gulf Keystone Petroleum share price was +2.75p at 65.5p

[LON:GPX] Gulfsands Petroleum PLC share price was 0p at 25.25p

[LON:INDI] Indus Gas Ltd share price was -0.12p at 294.88p

[LON:OEX] Oilex Ltd share price was -0.12p at 2.63p

[LON:PET] Petrel Resources PLC share price was -0.38p at 4.75p

[LON:RKH] Rockhopper Exploration PLC share price was -0.25p at 66.25p

[LON:RPT] Regal Petroleum PLC share price was -0.74p at 3.79p

[LON:TRP] Tower Resources PLC share price was +0.04p at 0.64p

[LON:XEL] Xcite Energy Ltd share price was +0.13p at 38.13p



Story provided by StockMarketWire.com