TORTOLA, British Virgin Islands — Orca Exploration Group Inc (“Orca”) announces that McDaniel & Associates Consultants Ltd. has finalised its report on the resource potential of the Songo Songo West prospect that lies 2.5 kilometres west of the existing Songo Songo field. The Songo Songo West prospect has a similar geological structure to the Songo Songo field and is expected to have trapped gas in the same reservoir.
The report summarises the prospective recoverable resources to be as follows:
The prospect is interpreted by McDaniel as having a high geological chance of success of 52% in the Neocomian and 35% in the Cenomanian reservoirs.
The size of the prospect compares extremely favourably with the Songo Songo field that contains total gross 2P recoverable Additional Gas reserves of approximately 500 Bcf on a life of licence basis (gross to the Company 474 Bcf with an NPV 10 of US$255 million) that is available to be marketed and sold by Orca under the terms of the PSA with the Tanzania Petroleum Development Corporation.
Orca has tendered for a jack up rig with a view to testing the prospect in 2009. The Company is currently looking for another operator in East Africa to share the costs of the rig and ancillary services.
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’s control, including the impact of general economic conditions in the areas in which Orca 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’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 will derive therefrom.
For further information please contact:
Peter Clutterbuck, President and CEO
+255 (0)7768 120727
Nigel A Friend, CFO
+255 (0)22 2138737