Tortola, British Virgin Islands EastCoast Energy Corporation (“EastCoast Energy” or the “Company”) announces that it has signed a rig contract with Caroil SA to drill a sixth development well, SS-10, on the Songo Songo field.
The Caroil 6 land rig is currently being mobilised to Songo Songo Island. The new well will deviate one kilometer offshore and will be drilled to a depth of approximately 6,400 feet. Drilling is expected to be completed by mid June, 2007, at a total cost of approximately US$11 million.
Earlier, in Janary 2007. EastCoast successfully performed remedial work on offshore well SS-9. The Company removed equipment that was left downhole in 1997. As a result, the well’s flow rate has increased from 20 MMscf/d to 50 MMscf/d.
The increased delivery from Songo Songo is required to meet the increasing consumption of ‘Additional Gas’ by both the power and industrial sectors in the Dar es Salaam area, whilst also ensuring there is sufficient deliverability in the event of the loss of production from any one of the six wells.
EastCoast is a TSXV listed company, focused on the exploration and production of Tanzanian natural gas and the sale of “Additional Gas” to markets in East Africa. The Company trades on the TSXV under the trading symbols ECE.B and ECE.A. The Company is headquartered in Tortola, British Virgin Islands and maintains its operations offices in Dar es Salaam, Tanzania.
Forward Looking Statements
This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond EastCoast’s control, including the impact of general economic conditions in the areas in which EastCoast 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 EastCoast’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 EastCoast will derive therefrom.
For further information please contact:
Peter Clutterbuck, President and CEO
+255 (0)22 2138737
Nigel A Friend, CFO
+255 (0)22 2138737