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
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.
SOURCE Orca Exploration Group Inc.
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