Orca Exploration Group Inc. (“Orca” or the “Company”) announces that it has entered into an option with Neptune Petroleum (Uganda) Limited (“Neptune”), a wholly owned subsidiary of Tower Resources plc, to earn a 50% interest in the 6,040 sq km Exploration Area 5 license acreage, north western Uganda. The area is currently licensed 100% to Neptune.
“This is the first step in Orca’s announced intention to acquire an interest in two high potential oil exploration and development opportunities,” stated Peter Clutterbuck, Orca’s President and CEO. “We are very pleased to be working with Tower Resources and expect to begin a 2D seismic program of 250-300 kilometers in November 2007. Uganda is entering a very exciting phase in the development of its oil resources and Orca and Tower are looking forward to being part of it. We are also pleased to be working with Tower since both our companies have the same respectful and community-friendly approach to conducting business in Africa.”
Under the terms of the agreement, and in consideration for granting an interest option, Orca will fund 83.33% of the 2007 2D seismic programme and certain past costs, subject to a maximum carried cost of US$6 million. On completion of the interpretation of the seismic data, expected by Q1 2008, Orca will have the exclusive right to acquire a 50% working interest in Exploration Area 5 in return for funding 83.33% of two exploration wells. The carry to drill the wells is capped at a maximum cost to the Company of between US$10 million and US$15 million depending on whether the wells are tested. Contingent on the results of the seismic program, drilling of the two exploration wells could begin as early as mid-2008.
If Orca exercises its option to become a 50% partner, Orca will assume management responsibility for all drilling activities. Neptune will continue as operator under the licence for a period of three years.
Orca Exploration Group Inc. is a well-financed, international public company engaged in hydrocarbon exploration, development and marketing. Orca’s operations are directed from offices in Dar es Salaam, Tanzania. The Company is focused on increasing shareholder value through the exploration, development and marketing of Tanzanian natural gas and the exploration and development of high potential oil interests in sub-Saharan Africa. Orca Exploration trades on the TSXV under the trading symbols ORC.B and ORC.A.
Tower Resources plc is an AIM-listed independent oil and gas exploration company with a regional focus on sub-Saharan Africa through its wholly owned subsidiaries, Neptune Petroleum (Uganda) Limited and Neptune (Namibia) Limited.
This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the offering has been qualified for distribution. The securities offered are not, and will not be, registered under the securities laws of the United States of America, nor any state thereof and may not be sold in the United States of America absent registration in the United States or the availability of an exemption from such registration. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the United States. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news 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 please contact:
Nigel A Friend, CFO
+255 (0)22 2138737
Peter Clutterbuck, President and CEO
+255 (0)22 2138737