duster, page-11

From HB markets.

Tower Resources (TRP, 1.45p, ?14.60m) has announced its Ugandan Aviva-1 exploration well has come up dry to the full depth. As we warned in October the exploration activity was ?highly speculative? but the group does have a 15% carried interest in the Namibian interest that remains a potentially world class asset. The current price reflects the potential value of the group?s Namibian interests alone. As such the shares are fairly rated but the group is believed to still be planning at least one further well so we will maintain a very risky SPECULATIVE BUY.

Tower Resources (TRP, 1.725p, ?17.37m) This morning has seen a 20% recovery so we drop the earlier Speculative Buy recommendation to a HOLD.

Looks like we might be looking at a third Uganda well. Don't assume the Uganda program won't continue just yet.

Great thing about GBP is that they still have at least 3 prosped wells in the US this year and lets not forget the $23 million.

I am led to believe that TXN plans the next Leighton well in Q2. There will be two follow up wells in Q3 and Q4.

Great to see that investors realise that GBP does have some significant value that can be unlocked in the short term. Only 1.5 million GBP traded on the LSE versus 108 million traded for TRP. The current number of shares in issue as at 1 November 2009 is 1,007,162,756 for TRP. More than 10% of shares already changed hands in TRP. On the other hand GBP has traded less than 1% of shares on issue. I'll be waiting at 10-12c to pick some more GBP up way below cash backing. Hopefully we do get that rush out the door, but it is looking unlikely. GBP is going to consolidate in the UK overnight. Expecting it to settle around 7.5 pence, which is AUD$0.13 equivalent.