Tanzania: Orca to Spud Songo Songo Wells in December

Orca Exploration Group Inc. announces that it has taken delivery of the Sakson PR5 drilling rig at Songo Songo Island enabling the Company to begin work on its US$130 million drilling and development program in Tanzania.

Orca, which currently supplies gas primarily for power generation to the Tanzania Electric Supply Company (TANESCO) and Songas, as well as industrial customers, intends to increase its gas production capacity from 113 million standard cubic feet per day to over 250 million standard cubic feet per day in the coming months. This additional gas production is urgently needed to meet current and future power generation demand in Tanzania.

Following offloading, assembly and rig-up, the newly arrived Sakson PR5 rig is scheduled to commence work on the first of two wells in late December as part of the ongoing development of the Songo Songo field. The Company expects to invest a further US$35 million exploring Songo Songo West, which if successful will add significant new gas reserves.

W. David Lyons, Chairman and CEO said, “This investment is a significant milestone in Orca’s infrastructure expansion programme and will enable us to double production capacity at Songo Songo and support the Government of Tanzania’s drive to increase the capacity of the national power grid. We are fully committed to ensure that Orca plays its part in helping meet the needs of the Tanzanian people.”

The Sakson Rig PR5 is a modern, high-specification powerful rig that has been contracted to drill Well SS-A as part of the ongoing development of Songo Songo. The installation, erection, and commissioning of the Rig including preparations for drilling operations may take approximately 4 weeks. Drilling is expected to commence on or about 23 December.

Orca Exploration is an international public company engaged in natural gas exploration, development and supply in Tanzania and oil and gas appraisal in Italy. Orca Exploration trades on the TSXV under the trading symbols ORC.B and ORC.A.

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Offshore Energy Today Staff , November 17, 2011; Image: Orca Exploration Group