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Comet deal boosts Tower in north-west Africa

Monday, June 16, 2008


Tower Resources, the oil and gas explorer, has boosted its interests in north-west Africa by striking a deal to buy Comet Petroleum for around £50,000 in shares.

Comet has a 50pc stake in two exploration licences in the Saharawi Arab Democratic Republic (SADR), which is commonly known as Western Sahara. Tower said it would pay up to a further £1.5 million for the business as a consequence of those licences becoming operative.

Peter Kingston, Tower's chairman, explained: “The Comet assets in SADR have considerable technical merit and, when the licences become operative, they are likely to have equivalent prospectivity to other north-west African exploration provinces.”

Kingston said the acquisition met Tower's corporate philosophy of securing prospective exploration acreage before it becomes attractive to the industry at large.

“Initial costs are small and will not materially add to the company's existing financial commitments,” he added.

Comet’s licences include the Guelta and Bojador Blocks in the Aaiun basin. Guelta is offshore covering covers an area of 15,760 sq km and Bojador is onshore and covers an area of 44,298 sq km. Other parties to the licences are Maghreb Exploration Ltd and Osceola Hydrocarbons Ltd.






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