StockMarketWire.com - Tower Resources' interest in Kenya Block-2B has increased after Premier Oi exercised its right to exit the joint venture.

Tower says it has received formal notification from block operator Lion Petroleum, the wholly-owned Kenya-based subsidiary of Taipan Resources, that Premier Oil has exercised its right to exit the joint venture with effect from 30 April.

Accordingly, Lion and Tower's working interests in the block will be adjusted on a pro-rata basis (Lion 66.66%, Tower 33.34%) for the remaining approximately six months of the current licence phase (unless otherwise agreed).

Tower's update says: "The ministry of energy has agreed to a six month extension to the first additional exploration period to 30 November. This is in order to complete the assessment of the remaining prospectivity of Block-2B, and as a result of the ongoing legal action relating to the temporary injunction served upon Lion, Premier, and other named parties highlighted in our announcement dated 12 December 2014 (Badada-1 Well Site Preparation and Rig Contract), which has prevented operations over the majority of the block.

"This will give the joint venture partners time to complete their remaining technical assessments and review their strategy with respect to Block-2B. During this extension period no additional financial commitments will be incurred."

Chief executive Graeme Thomson said: "Tower has increased its interest in Block 2B at nil cost and the six month extension to the First Additional Exploration Period will provide joint venture partners the time necessary to finish a thorough assessment of the prospectivity on this large (5,458 sq km) block."


At 2:37pm: [LON:TRP] Tower Resources PLC share price was 0p at 0.22p



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