16 November 2011
Orca Exploration announces arrival of drill rig to begin $130 million Songo Songo field expansion
TSX-V: ORC.A, ORC.B
TORTOLA, British Virgin Islands, Nov. 16, 2011 /CNW/ - Orca Exploration Group Inc. ("Orca" or the "Company") announces that it has today taken delivery of the Sakson PR5 drilling rig at Songo Songo Island enabling the Company to begin work on its US$130 million drilling and development program in Tanzania.
Orca, which currently supplies gas primarily for power generation to the Tanzania Electric Supply Company (TANESCO) and Songas, as well as industrial customers, intends to increase its gas production capacity from 113 million standard cubic feet per day to over 250 million standard cubic feet per day in the coming months. This additional gas production is urgently needed to meet current and future power generation demand in Tanzania.
Following offloading, assembly and rig-up, the newly arrived Sakson PR5 rig is scheduled to commence work on the first of two wells in late December as part of the ongoing development of the Songo Songo field. The Company expects to invest a further US$35 million exploring Songo Songo West, which if successful will add significant new gas reserves.
W. David Lyons, Chairman and CEO said, "This investment is a significant milestone in Orca's infrastructure expansion programme and will enable us to double production capacity at Songo Songo and support the Government of Tanzania's drive to increase the capacity of the national power grid. We are fully committed to ensure that Orca plays its part in helping meet the needs of the Tanzanian people."
The Sakson Rig PR5 is a modern, high-specification powerful rig that has been contracted to drill Well SS-A as part of the ongoing development of Songo Songo. The installation, erection, and commissioning of the Rig including preparations for drilling operations may take approximately 4 weeks. Drilling is expected to commence on or about 23 December.
Orca Exploration is an international public company engaged in natural gas exploration, development and supply in Tanzania and oil and gas appraisal in Italy. Orca Exploration trades on the TSXV under the trading symbols ORC.B and ORC.A.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This document contains forward-looking statements. More particularly, this document contains statements concerning expected increases to Orca's additional gas sales and effect on cash flow and timing of commencement of operations of new 105 MW plant in Dar es Salaam. These forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Orca Exploration's control, including, but not limited to, the impact of general economic conditions in the areas in which Orca Exploration operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility, competition for, among other things, capital, drilling equipment and skilled personnel, and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations, therefore Orca Exploration's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that Orca Exploration will derive therefrom. Such forward-looking are based on certain made by Orca in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors Orca believes are appropriate in the circumstances, including, but are not limited to, the ability of Orca to add production at a consistent rate; commodity prices will not deteriorate significantly; the ability of Orca to obtain equipment in a timely manner to carry out exploration, development and exploitation activities; and future capital expenditures. The forward-looking statements contained in this press release are made as of the date hereof and Orca undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
For further information please contact:
|W. David Lyons,
Chairman and CEO
|Nigel A. Friend, CFO