TORTOLA, British Virgin Islands — Orca Exploration Group Inc (“Orca Exploration”) has successfully completed the drilling of the SS-10 development well on the Songo Songo gas field in Tanzania.
The well was flowed at a peak rate of 52 MMscf/d, and a sustained rate of 40 MMscfd through a restricted 1″ choke at a 1,900 psi wellhead pressure during a 24 hour test that was restricted by surface facilities. It is estimated that the well will be able to flow at an initial rate in excess of 55 MMscf/d when on production. This makes SS-10 one of the most productive wells in the field and increases the total deliverability of the six production wells to over 200 MMscf/d.
The well was drilled to a total measured depth of 2,426 meters within the main Neocomian reservoir. The top reservoir was encountered on prognosis at a measured depth of 1,909 meters (-1,700m TVDSS) and a comprehensive suite of wireline logs, the first on the field for over twenty five years, was successfully acquired. From evaluation of the logs, 101 meters was perforated in the reservoir.
The SS-10 well will be required to meet the rapidly increasing demand for gas by the power and industrial sectors in Tanzania. In the course of the last 12 months, 268 MWs of gas fired generation has been installed in Dar es Salaam taking the total gas fired generation utilising Additional Gas to 310 MW. A further 45 MWs is under construction and is expected to start utilising gas from September 2008. Orca Exploration is currently negotiating a long term contract to supply gas to these units. Orca Exploration Group Inc. is a well-financed, international public company engaged in hydrocarbon exploration, development and marketing in Tanzania and Uganda. 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.
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:
Peter Clutterbuck, President and CEO
+255 (0)22 2138737
Nigel A Friend, CFO
+255 (0)22 2138737