Orca Exploration announces exploration update



    TORTOLA, British Virgin Islands, Aug. 1 /CNW/ - Orca Exploration Group
Inc ("Orca") announces that following completion of the technical review of
data on Uganda Exploration Area 5 ("EA5"), it has elected not to exercise the
Option to earn 50% by committing to a drilling programme, and therefore has no
further interest in this opportunity.
    The data recently acquired on EA5, including 2D seismic, was processed
and interpreted. Although a number of structures were imaged, other aspects
indicated that the level of risk was higher than expected and did not warrant
the costs of drilling. This opportunity was always regarded by Orca as medium
to high risk, and would only proceed from the seismic phase to the drilling
phase if the seismic and other data acquired had the effect of reducing risk
by identifying acceptable prospects.
    Funds released from the Uganda programme will now be more effectively
used for progressing the planned drilling of Songo Songo West in 2009, which
is regarded by Orca as lower risk with higher upside than Uganda EA5, and with
the advantage of later full cost recovery from the Songo Songo PSC cost
recovery pool, thereby reducing financial risk. Orca has progressed drilling
plans, identified suitable offshore jackup rigs available in the right
timeframe, and is embarking on a rig tender process for two to three wells. A
substantial portion of drilling materials for this programme is already
stockpiled on Songo Songo island. Discussions are also under way to secure gas
markets in the near term for this potentially large resource adjacent to the
Songo Songo field. Plans for development of a discovery at Songo Songo West
will also be progressed. An independent resource assessment of Songo Songo
West is in process, the results of which will be announced when completed.
    Orca is committed to utilising available working capital and strong cash
flow to build maximum shareholder value at minimal risk in sub-Saharan Africa.
To this end, Orca is also evaluating an opportunity offshore West Africa,
which is currently regarded as lower risk with higher potential and earlier
commercialisation than EA5.

    Forward Looking Statements

    This disclosure contains certain forward-looking estimates that involve
substantial known and unknown risks and uncertainties, certain of which are
beyond Orca Exploration's control, including 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 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.





For further information:

For further information: Nigel A. Friend, CFO, +255 (0)22 2138737,
nfriend@orcaexploration.com; Peter R. Clutterbuck, CEO, +44 (0) 7768 120727,
prclutterbuck@orcaexploration.com or visit the Company's web site at
www.orcaexploration.com


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