Business
Orca Exploration announces its results for the quarter ended 30th June 2007
Orca Exploration announces its results for the quarter ended 30th June 2007.
About this update from Orca Energy Group Inc. Class B
[{"type":"text","content":"\n\n\n\nTORTOLA, British Virgin Islands, Aug. 30 /CNW/ - Orca Exploration Group\nInc ("Orca Exploration" or the "Company") announces its results for the\nquarter ended 30 June 2007.\n\n\nQuarter Highlights\n\n- Incurred a loss before tax of US$0.5 million (Q2 2006: profit before\n tax of US$1.1 million) with funds from operations before working\n capital changes of US$1.3 million (Q2 2006: US$1.3 million). The\n decrease in profitability is primarily the result of an increase in\n costs attributable to the business development activities.\n\n- Signed an option agreement with Tower Resources plc that gives Orca\n the opportunity to become a 50% interest holder in the 6,040 square\n kilometers, Exploration Area 5 in Uganda.\n\n- Increased Q2 2007 sales of Additional Gas to Dar es Salaam industrial\n customers by 14% to 397 mmscf (an average of 4.4 mmscf/d) compared\n with 347 mmscf in Q2 2006. Average industrial prices remained strong\n at US$8.61/mcf.\n\n- Increased Q2 2007 sales of Additional Gas to the power sector by\n 1% to 745 mmscf (an average of 8.2 mmscf/d) compared with 739 mmscf\n in Q2 2006, at an average price of US$2.17/mcf (Q2 2006: 2.13/mcf).\n\n- Advanced negotiations with the Tanzanian Ministry of Energy and\n Minerals and TANESCO for the supply of gas to 245 MWs of gas fired\n generation for a period of 16 years.\n\n- Demonstrated the first vehicle to operate on compressed natural gas\n in Tanzania at the International Trade Fair in July 2007. The Company\n is looking to expand the CNG operations in the course of the next\n 18 months.\n\n- Continued the installation of an additional 8 kilometers of low\n distribution pipeline to improve security of supply and to hook up to\n four new industrial customers. This line is due to be completed\n during Q3 2007.\n\n- Delayed the completion of the drilling of SS-10 because of the\n unexpected mechanical failure of the drill rig. A major rig overhaul\n is in progress and drilling is scheduled to recommence in\n September 2007. The well is currently drilled to 1,689 meters and\n secured at a depth of 1,074 meters. Subsurface geology is as\n expected.\n\n- Announced a private placement to raise gross proceeds of\n Cdn$34.5 million through the issuance of 2.5 million Class B shares\n at a price of Cdn$13.80 per share. Proceeds were received in early\n Ju...