GBP Global Petroleum Limited

Tower Resources PLC (TRP.LN), the owner of oil exploration assets in offshore Namibia and Uganda, Friday announced new financing agreements that are designed to provide flexibility over future funding and to fund the costs of drilling a well, Mvule-1 on Tower's EA5 license area in Uganda.

MAIN FACTS:

-Tower has entered into an GBP8 million Standby Equity Distribution Agreement, or SEDA, and a $3.125 million loan agreement with YA Global Master SPV Ltd, an investment fund.

-The Loan Agreement will be used to provide the immediate funding required to drill the Mvule-1 well, and can be increased in tranches of $1 million up to a maximum of $6.125 million if required.

-The SEDA will be available to finance repayments of the Loan Agreement and any balance of the well costs and to provide flexible funding options.

-Tower has budgeted $6.8 million for Mvule-1 on a dry hole basis.

-Tower's wholly owned subsidiary, Neptune, has reached agreement with all interested parties to use the OGEC K900 drilling rig, currently committed to Tullow, to drill Mvule-1.

-It is planned that site preparation will begin shortly with a view to spudding the well by the middle of February 2012; well anticipated to reach drilled depth of 600 meters within two weeks of spud.

-Global Petroleum Ltd had retained an option to earn an interest in EA5 as a result of its contribution to the funding of the first two wells and carried out an independent technical review of the Mvule prospect, to its satisfaction.

-Following further discussions between the two companies, however, Global has ultimately chosen not to take up its option.

-Shares at 0804 GMT, up 7.8%, at 3.1 pence valuing the company at GBP35.24 million.

-By Rory Gallivan, Dow Jones Newswires; 44-20-7842-9411; rory.gallivan@dowjones.com

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