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## 9. Intangible assets (continued) 

The outcome of ongoing exploration and evaluation, and therefore whether the carrying value of E&E assets will ultimately be recovered, is inherently uncertain. The Directors have assessed the value of the E&E expenditure carried as intangible assets, and in their opinion, no further impairment is necessary. This assessment includes a review of the expiry dates of licenses and the likelihood of their renewal, available funds and the intention to continue exploration and evaluation. 

## 10. Investments – subsidiary undertakings 

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The loans to subsidiary undertakings have no fixed repayment terms but are repayable in more than one year. 

During the year the Company incorporated a new wholly-owned subsidiary called Tower Resources (Uganda) Limited. This company had not commenced trading or undertaken any commercial transactions at the year end. 

Under the terms of the agreement for the purchase during 2008 of Comet Petroleum Ltd (“Comet”), additional consideration may be payable in the future depending upon the success of Comet’s evaluation and exploration activities, although it is not possible at this stage to quantify with any accuracy such additional prospective consideration. Through its wholly owned subsidiary, Comet Petroleum (SADR) Limited, Comet is investigating the possibilities for participation in oil and gas exploration in the Saharawi Arab Democratic Republic in the Western Sahara. 

The Company’s directly and indirectly held subsidiary undertakings as at 3 1 December 2010 were: 

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The Directors have assessed the carrying value of the subsidiary company investments and in their opinion no impairment provision is currently considered necessary. 

