Orca Exploration provides operational update
Posted on 08 January 2019
TORTOLA, British Virgin Islands January 8, 2019: Orca Exploration Group Inc. (“Orca” or the “Company”) is pleased to provide the following operational update on its current activities in Tanzania.
Shortly before the year end, Orca’s subsidiary, Pan African Energy Tanzania Limited (“PAET”) signed a short-term sales agreement (“Agreement”) with the Tanzania Petroleum Development Corporation (“TPDC”) and the Tanzania Electric Supply Company (“TANESCO”) for the immediate supply of gas to TANESCO of up to 35 million standard cubic feet per day (“MMscf/d”). These additional volumes are being processed and transported through TPDC’s National Natural Gas Infrastructure (“NNGI”) and will allow TANESCO to generate increased and more stable power to meet emerging demand.
First gas flowed through the NNGI on 24 December and production averaged 20 MMscf/d in the first ten days of operation. Total Additional Gas sales, including those through the Songas gas processing and transportation system (“Songas Facilities”), averaged 56 MMscf/d over the same period. This compares to an average for the third quarter of 44 MMscf/d. The Agreement provides a mechanism for the parties to agree to one-month extensions for a maximum term of six months and is expected to be superseded by a long-term agreement.
PAET can supply these additional volumes from its existing well stock. Two wells, SS-11 and SS12 are tied into the NNGI and SS-10 will be connected if required to meet demand. PAET is currently in the process of installing a refrigeration package as part of the Songas Facilities to ensure that gas can continue to be processed at the plant’s capacity. It is expected that this will be operational by mid-2019.
Nigel Friend, CEO of Orca, commented “We have worked very closely with TPDC and TANESCO to ensure that Songo Songo natural gas is available for electricity and industrial demand on a timely basis. It has been made possible by the field work programme that was completed by the Company in 2016 and the construction of extensive gas processing and pipeline infrastructure capacity by TPDC and the Government of Tanzania that was commissioned in the same year. We look forward to working with all parties to ensure that affordable indigenous gas continues to be a significant proportion of the energy mix in Tanzania”.
About Orca Exploration Group Inc.
Orca is an international public company engaged in natural gas exploration, development and supply in Tanzania through its subsidiary PAET. Orca trades on the TSX Venture Exchange under the trading symbols ORC.A and ORC.B. The Company’s Project Agreements are more fully described in the Company’s 2016 Annual Information Form, and available here. For further information please contact:
Nigel Friend, CEO
Blaine Karst, CFO
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 Information
Certain information regarding Orca set forth in this press release contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words “plan”, “expect”, “prospective”, “project”, “intend”, “believe”, “should”, “anticipate”, “estimate” or other similar words, or statements that certain events or conditions “may” or “will” occur are intended to identify forward-looking statements. Such statements represent Orca’s internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, TANESCO’s generation of electricity, and future demand for electricity. These statements are only predictions and actual events or results may differ materially. Although the Company’s management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Orca’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Orca.
In particular, forward-looking statements contained in this press release include, but are not limited to, statements with respect to TANESCO’s increased generation of electricity and the stability of such generation, Orca’s expectations regarding a long-term agreement that will supersede the Agreement, the connection of SS-10 to the NNGI if required, and the expected operational date for the refrigeration facilities being installed as part of the Songas Facilities.
These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions; industry conditions including changes in laws and regulations, and changes in how they are interpreted and enforced; competition; lack of availability of qualified personnel; risks related to obtaining required approvals of regulatory authorities; risks associated with negotiating with governments and other counterparties; fluctuations in foreign exchange or interest rates; changes in income tax laws or tax rates; ability to access sufficient capital from internal and external sources; failure of counterparties to perform under the terms of their contracts; failure to enter into the expected long-term agreement superseding the Agreement, on the expected terms or at all; failure to complete the construction of the refrigeration facilities in the Songas Facilities; unforeseen difficulties in connecting SS-10 to the NNGI, if required and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive.
Although the forward-looking statements contained in this press release are based upon assumptions which management believes to be reasonable, Orca cannot assure investors that actual results will be consistent with these forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements included in this press release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. With respect to forward-looking statements contained in this press release, Orca has made assumptions regarding, among other things: availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the impact of increasing competition; conditions in general economic and financial markets; effects of regulation by governmental agencies; receipt of partner, regulatory and community approvals; future operating costs; effects of regulation by governmental agencies; that Orca will have sufficient cash flow or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that Orca’s conduct and results of operations will be consistent with its expectations; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; and other matters.
Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide investors with a more complete perspective on Orca’s current and future operations and such information may not be appropriate for other purposes. Orca’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Orca will derive. These forward-looking statements are made as of the date of this press release and Orca disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
“Additional Gas” is all of the natural gas in the Songo Songo licence acreage that is in excess of the natural gas in the Songo Songo licence acreage that is owned by TPDC.