Orca Exploration Announces Well Workovers

TSX-V: ORC.A, ORC.B

TORTOLA, British Virgin Islands, Dec. 29 /CNW/ - Orca Exploration Group Inc. ("Orca" or "the Company")  has announced that it will perform workovers in 2011 on two Songo Songo offshore natural gas wells (SS-5 and SS-9).

Recent routine testing of all five Songo Songo producing gas wells has determined that there is the need for some remedial work on the tubing.  As a result Orca has suspended production from SS-5 and reduced flow rates from some of the other wells.  This will cause a short term reduction in system deliverability to approximately 74 MMcfd until SS10 is brought on stream in January 2011.

Once completed, the workovers of SS-5 and SS-9 are anticipated to add 40 MMcfd to field deliverability as well as extend the wells productive lifespan. The Company is continuing to analyse the testing data to determine the best workover strategies and associated costs.

To address this urgent need to increase gas availability Orca will continue all planned infrastructure activities. In anticipation of additional gas availability TANESCO (the Tanzanian electric utility) has contracted Jacobsen Elektro SA to install a further 105 MW plant by Q1 2012 and the Government is planning to re-commission a 112 MW plant that has been idle for two years. Orca is currently negotiating a re-rating agreement with Songas to ensure that there is sufficient infrastructure capacity to supply this plant.

Orca is continuing with plans to drill the Songo Songo West exploration prospect in 2011.  The Company is currently in discussion with another exploration company interested in securing a jack up rig in the same timeframe and who is willing to share mobilisation costs.

Orca Exploration is an international public company engaged in natural gas exploration, development and supply in Tanzania and oil appraisal and gas exploration 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 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:

W. David Lyons, Chairman and CEO
[phone]
[email protected]

Nigel A. Friend, CFO  
[phone]  
[email protected]