rig is on the way!, page-22

thats great news for GBP if they have infact spudded the well over the weekend, it certainly fits the revised timeline advised by the company.

just a quick note in regards pre-drilling exploration survey's, it is important to note that Tower/GBP have followed the same exploration path that led UK oil giant Tullow to the discovery of P50 reserves of 700 million barrels of oil (post takeover of partner Herritage), in the Ugandan blocks immediately south of holdings of Tower/GBP.

below is a section taken from the Tower Resources Report

http://www.towerresources.co.uk/uploads/tower130110outlook.pdf


"The exploration programme subsequently implemented by Tower is analogous to that applied by Heritage and Tullow to the south. Initially a gravity magnetic survey was commissioned, which identified several leads. This was followed by a 300km 2D survey in late 2007 in the south of the licence area. Interestingly, this was financed by the then farm-in partner, Orca Petroleum. The 2D survey confirmed the existence of large sedimentary structures similar to those in Blocks 1 and 2 while geochemical analysis pointed to hydrocarbon generation and migration. Evidence of micro-oil seeps was found in the area surveyed, with the sampled oil being similar to oil sampled from seeps in other parts of the Albertine Basin. Significantly, Tower identified a potential hydrocarbon kitchen zone about 40km"
north of the southern boundary of the licence in the deepest part of the Rhino Camp basin."


the GBP shareprice is clearly trying to find a balance between the cash backing and US production revenue and the blue sky potential a discovery in Uganda presents (100 million barrels 25 million net GBP), at current levels the market doesn't value any upside from Uganda.

as has been highlighted previously a discovery in Uganda is worth between 80c-$1 for the GBP shareprice on top of the cash backing of 15c, with the possible downside limited to the 14-16c level thanks to the cash backing, it presents a very good risk/reward proposition at the current shareprice of 18.5c.

as always there are risks with investing in exploration companies, and even with a relatively high pre-drill potential success expectation of 35%, it is important to DYOR.