TORTOLA, British Virgin Islands Orca Exploration Group Inc. “Orca” or the “Company”) announces that it has signed an agreement with Northern Petroleum (UK) Limited (“Northern Petroleum”) to farm in on its Longastrino Block in the Po Valley Basin, onshore Italy.
Under the terms of the farm-in with Northern Petroleum, Orca will pay 100% of the costs of the first well up to Euro 4.3 million and 70% thereafter to complete the drilling phase. If the well is tested and completed, then Orca will earn an additional 5% by paying 100% of the testing costs up to Euro 1.3 million and 75% thereafter. The Company will also pay back costs of Euro 0.6 million.
The principal target within the Longastrino Block is the La Tosca prospect. The prospect is just 2 kilometers to the northeast of the Alfonsine gas field and the 3-D seismic that covers the prospect shows a well defined seismic amplitude anomaly within the mapped closure. The La Tosca-1 well will be drilled to an estimated total depth of approximately 2,500 meters. The well is scheduled to be drilled in Q2/Q3 2011.
“Orca is delighted to be partnering with Northern Petroleum in drilling the La Tosca well. We see this as a low risk exploration opportunity in a proven hydrocarbon basin with significant upside potential,” said David Lyons, Orca Exploration Chairman and CEO. “This acquisition is Orca’s second entry into Italy which we believe has substantial reserves and has been overlooked by the major players.”
In May 2010, Orca signed a farm-in agreement with Petroceltic International Plc to acquire a 15% interest in the Petroceltic operated B.R268.RG Permit in the offshore Central Adriatic. The area has significant oil exploration upside and as part of the farm-in Orca will earn the right to participate in 11 adjacent exploration blocks in the Central Adriatic. This project is currently suspended following an Italian government decree that currently prevents the drilling of the Elsa-2 well, due to its location within the drilling ban area of 5 miles from the coast line.
Orca Exploration is an international public company engaged in hydrocarbon exploration, development and supply of natural gas in Tanzania and the development of high potential oil and gas exploration, appraisal and production opportunities in Europe, the Middle East and Africa. Orca Exploration trades on the TSXV under the trading symbols ORC.B and ORC.A.
For further information please contact:
|W. David Lyons, Chairman and CEO|
|Nigel A. Friend, CFO|
+255 (0) 22 2138737
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this 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.