Orca Exploration Group Inc (“Orca”) announces that the Board of Directors has approved a US$11 million capital program for its gas asset in Tanzania in 2009.
The majority of the capital will be allocated to the expansion of Orca’s downstream distribution systems so as to increase the sale of gas to the industrial customers in Dar es Salaam and Morogoro by a forecast 5 MMscf/d by the end of 2009. It will include the construction of 10 kilometers of additional low pressure pipeline, the installation of a new pressure reduction station at the cement producer, Tanzania Portland Cement Company, and the expansion of Orca’s compressed natural gas facilities.
Orca will fund this capital program from internally generated cash flow while increasing its current cash deposits of US$10 million over the course of the year.
The demand for natural gas continues to grow in Tanzania and Orca remains committed to identify ways to increase reserves, expand markets, reduce costs and monetise its assets.
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:
Nigel A Friend, CFO
+255 (0)22 2138737
Peter Clutterbuck, President and CEO
+255 (0)7768 120727