TORTOLA, British Virgin Islands June 17, 2021: Orca Energy Group Inc. (“Orca” or the “Company“) announces its updated independent natural gas resource assessment report with an effective date of March 31, 2021 (the “Resource Report”). All references to “contingent resources” and “prospective resources” in this press release refer to “contingent conventional natural gas resources” and prospective conventional natural gas resources”, and all references to “natural gas” in this press release refer to “conventional natural gas” as defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101“).
The Resource Report was prepared by McDaniel & Associates Consultants Ltd. (“McDaniel”) in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook“) and NI 51-101 to provide our stakeholders with an understanding of the contingent and prospective natural gas resources in the Songo Songo license acreage in Tanzania (the “Songo Songo License“) that is subject to the terms of the Songo Songo Production Sharing Agreement (the “Songo Songo PSA”). The Songo Songo PSA expires concurrently with the expiry of the Songo Songo License in October 2026.
Subsequent to the preparation of the Company’s Independent Reserves Report by McDaniel, with an effective date of December 31, 2020 (the “Reserves Report“), the Company commissioned McDaniel to update the 2019 Resource Report (effective June 30, 2019) to incorporate the updated sub-surface geological model for the Songo Songo field reflected in the Reserves Report. Additional information in respect of the Company’s reserves and the Reserves Report is included in Orca’s report dated March 2, 2021 relating to reserves data and other oil and gas information under NI 51-101, which is filed on its profile on SEDAR at www.sedar.com.
All the Company’s resources are located in Tanzania. Resources included herein are stated on a Company gross basis unless noted otherwise. Company gross resourcesrefers to the Company’s 92.07 percent interest in the resources.
Highlights
- At March 31, 2021 the Company’s unrisked Best Estimate contingent resources were 297 billion standard cubic feet (“Bcf”) (148 Bcf risked Best Estimate contingent resources). This is the estimated resources associated with the Songo Songo Main (“SSM”) pool and the Songo Songo North (“SSN”)pools not recovered prior to the current Songo Songo PSA expiry in October 2026.
- At March 31, 2021 the Company’s unrisked Best Estimate prospective resources were 611 Bcf (106 Bcf risked Best Estimate prospective resources). This is the estimated prospective resources at Songo Songo Extreme North (“SSExt-N”) and Songo Songo West (“SSW”).
- The Resource Report was prepared to incorporate the detailed sub-surface geological model for the Songo Songo field which was updated in 2020 and incorporated into the Reserves Report. The reduction in unrisked and risked Best Estimate contingentresources is primarily due to: (a) the remapping of the SSN structure into two structures SSN and SSExt-N, which are separated by a graben (structural low); and (b) a general reduction in estimated contingent resources. The SSExt-N prospect has been categorised as a prospective resource in the Resource Report, and carries additional risk associated with the chance of discovery. The smaller SSN pool continues to be classified as a contingent resource tested by the SS-1 discovery well, and the interpreted communication with the producing SSM pool.