Business
Orca Exploration announces its results for the quarter ended 30 September 2008
TORTOLA, British Virgin Islands, Nov. 27 /CNW/ - Orca Exploration Group Inc ("Orca Exploration" o...
About this update from Orca Energy Group Inc. Class B
[{"type":"text","content":"\n\n\n\nTORTOLA, British Virgin Islands, Nov. 27 /CNW/ - Orca Exploration Group\nInc ("Orca Exploration" or the "Company") announces its results for the\nquarter ended 30 September 2008.\n\n\nFinancial and Operating Highlights\n\n- 15% increase in Orca Exploration's Q3 revenues to US$7.3 million (Q3\n 2007: US$6.4 million).\n\n- Increased Q3 2008 sales of Additional Gas to the power sector by 6%\n to 2,097 Mmscf (Q3 2007: 1,974 Mmscf). This equated to an average of\n 22.8 Mmscf/d (Q3 2007: 21.5 Mmscf/d). Gas sales to the power sector\n are now underpinned by the long term gas demand by the TANESCO\n Wartsila 100 MW plant and the sixth turbine at Ubungo. The average\n price for the gas to the power sector was US$2.41/mcf (Q3 2007: US\n $2.19/mcf).\n\n- Q3 2008 sales of Additional Gas to industrial customers decreased by\n 4% to 425 Mmscf (Q3 2007: 442 Mmscf). This equated to an average of\n 4.6 Mmscf/d (Q3 2007: 4.8 Mmscf/d). Average prices were 39% higher at\n US$13.29/mcf resulting in a 33% increase in industrial sales revenue\n when compared to Q3 2007.\n\n- 1% increase in funds flow from operations to US$3.8 million (Q3 2007:\n US$3.7 million). The Company forecasts that it has sufficient working\n capital to fund its 2009 capital program.\n\n- Orca Exploration signed a five year contract with Tanzania Portland\n Cement Company ("TPCC"), a subsidiary of Heidelberg Cement, for the\n supply of gas to a new US$100 million kiln at its Wazo Hill plant in\n Dar es Salaam. The contract is forecast to commence in the first half\n of 2009 when the kiln is commissioned. Initially, it is forecast that\n 2 Mmscf/d of Additional Gas will be supplied under the contract, but\n this is expected to increase to in excess of 6 Mmscf/d by 2012 as\n TPCC overhauls its existing kilns and brings them back on production\n to meet increasing demand.\n\n- McDaniel and Associates Consultants Ltd finalised their resource\n evaluation report of the Songo Songo West prospect which lies 2.5 km\n west of the Songo Songo field and within the Company's licence\n acreage. The report concluded the prospect has recoverable mean\n unrisked gas resources of 552 Bcf with a one in two chance of\n success. This compares favourably with the gross life of field\n Additional Gas reserves of 500 Bcf at Songo Songo that is currently\n being m...