Tower Energy enters into farm-in agreements

Tower Energy enters into farm-in agreements

Tower Energy Ltd. is pleased to announce that the Company has entered into three Farm-in agreements with two separate oil and gas companies. Each will provide Tower with immediate drilling opportunities; as well which include possible additional development opportunities.

Two farm-in agreements are with Elkwater Resources Ltd. The first project is in the Esther area of Alberta, in which Tower will earn a 100% interest in the Farmout lands reserving unto Elkwater a convertible gross overriding royalty of 1/300 (2.5-7.5%) oil and 7.5% gas before payout which maybe converted to a 45% interest after payout. The target formation is the Viking which has offset producing oil wells.

The second Elkwater Farm-in is in the Empress area of Alberta. The Company intends to first shoot two additional seismic lines to be interpreted in conjunction with existing seismic data to ascertain the viability of two potential drilling targets. Tower will earn a 50% interest by paying 100% of the drilling costs. The Empress project is a Belly River gas target in which the Company will earn an interest in two sections and in which a second potential well has already been identified.

The third farm-in is with Poplar Point Energy Ltd. Tower will earn an estimated 4% working interest (based on current AFE’s) with the expenditure of $300,000 in the drilling, completion and tie-in of a well in the West Central area of Alberta. It is Towers objective to actively explore other development opportunities with Poplar Point Energy Ltd.

TOWER ENERGY LTD.

Charles Ross
Director

For further information, please contact:

Charles Ross CFO TOWER ENERGY LTD. Suite 2110 ”“ 1177 W. Hastings Street Vancouver, BC, Canada V6E 2K3 Tel: 604.688-5007 Fax: 604.681-5259 Email: info@towerenergy.ca

Website: www.towerenergy.ca

Richard Cohen Director Tel.: 905.882.4422 Fax: 905.882.4435 Email: towerenergy@clarkavenue.com

Website: www.clarkavenue.com

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