TSX-V: ORC.A, ORC.B
TORTOLA, British Virgin Islands, Sept. 27, 2011 /CNW/ - Orca Exploration
Group Inc. ("Orca" or the "Company") reports that in August 2011 it was
able to significantly increase the supply of natural gas to Dar es
Salaam power generation facilities following the re-rating of gas
processing facilities on Songo Songo Island. This increase in gas
availability is helping to reduce the power shortages that have been
impacting Tanzania following the failure of the rains which
significantly reduced the country's hydro generating capacity.
During August 2011, Orca's Additional Gas sales averaged 57 MMcfd
compared with 37 MMcfd in 2010. Of this, 84% was sold to the Tanzanian
power sector (48 MMcfd compared with 30 MMcfd in 2010). Orca staff was
instrumental in completing the technical evaluations that enabled the
re-rating to proceed.
Currently Tanzania is short approximately 200-300 MWs of power capacity
and is introducing emergency oil fired generation to alleviate the
shortfall. This oil fired generation is intended to be replaced with
gas fired generation once more gas can be transported to Dar es
Salaam. To accelerate the delivery of increased gas volumes to Dar es
Salaam, the Government of Tanzania has indicated that it will install a
new coastal gas pipeline system financed by funds from the Chinese Exim
Bank. The first phase of this project is expected to be the looping of
the existing 200 kilometer onshore pipeline from Songo Songo that will
enable 200 MMcfd to be transported to several new power plants that are
currently planned for the Dar es Salaam area. These Government
infrastructure plans will provide long term energy security for
Tanzania and potentially East Africa.
"Orca is committed to invest the capital in natural gas exploration and
development to ensure that it can deliver the 200 MMcfd from its Songo
Songo licence acreage in parallel with the Government announced
infrastructure developments and I have communicated this to President
Kikwete," stated W. David Lyons, Orca Chairman and CEO. "These are
exciting times. The proposed infrastructure developments in Tanzania
are exactly what are required to alleviate the energy shortages in
Tanzania and Orca is committed to fully play its part."
The first part of this commitment will be achieved by the drilling of
the "SSA" development well and the completion of remedial work on
SS-10. A letter of intent has been signed with a drilling rig
contractor and long lead items have been purchased. It is expected
that the SSA well will be spud in November 2011. The Company is also in
discussions to source a jack-up rig to drill the Songo Songo West
exploration prospect. The target is to spud this exploration well
during Q2 2012 and long lead items have been ordered.
Orca Exploration is an international public company engaged in natural
gas exploration, development and supply in Tanzania, the development of
a coastal pipeline gas network in East Africa, oil and gas appraisal in
Italy and the acquisition of additional new high potential exploration
opportunities in Europe and Africa. Orca Exploration trades on the TSXV
under the trading symbols ORC.B and ORC.A.
SOURCE Orca Exploration Group Inc.
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