21st May 2014 10:20
LONDON (Alliance News) - Tower Resources PLC Wednesday said there has been a delay to its drilling schedule in Namibia, and while it will not have a material financial consequence for the company, it doesn't expect drilling operations to recommence until the end of May.
The AIM-listed Africa-focussed oil and gas exploration company said that following the spud of Welwitschia-1 well in Namibia and installation of the 36-inch casing, it was observed that the wellhead housing had "slumped".
The company said that along with the PEL0010 joint-venture partners, Repsol Exploration Ltd, it decided to plug and abandon the Welwitschia-1 well and re-spud the well as Welwitschia-1A at a distance of approximately 50 metres from the original spud location.
"Despite the delay, it was expected that the re-spud would not impact on the overall cost or timing of the well," the company said in a statement.
However, Tower Resources said that Repsol has since reported a further operational delay to the drilling programme due to a fault with part of the Blow Out Preventer control system. It said drilling has been suspended whilst Repsol and the drilling contractor, Rowan Renaissance Drillship, are taking measures to rectify the fault so that they are able to recommence drilling safely, with further drilling delayed until the end of May.
"The current status of the well is that casing has been set to a depth of 1,879 metres, and we anticipate drilling into the primary target section shortly following the restart of drilling operations," Tower Resources said in its statement.
The company said that the cost implications of the delay are currently being reviewed, although it said that the well will be completed within budget despite the recent delays.
Tower Resources' wholly-owned subsidiary Neptune Petroleum (Namibia) Ltd has a 30% working interest in the Namibia PEL0010 venture.
Tower Resources shares were up 10.9% at 3.00 pence Wednesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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