Business
Orca Exploration announces its results for the three months ended 31 March 2010
Orca Exploration announces its results for the three months ended 31 March 2010
About this update from Orca Energy Group Inc. Class B
[{"type":"text","content":"\n\n\n\n May 28, 2010 (Canada NewsWire Group) -- TSX-V: ORC.A, ORC.B\n\n Orca Exploration Group Inc ("Orca Exploration" or the "Company") announces its results for the three months ended 31 March 2010.\n\n\n >\n\n\n\nChairman & CEO's Letter to Shareholders\n\nDuring the first quarter of 2010, Orca Exploration's gas production and marketing efforts in Tanzania generated funds flow from operating activities of US$4.3 million, a 194% increase compared with the same period in 2009. To build on this level of performance and earnings Orca Exploration is vigorously pursuing two strategies.\nFirst, Orca will work with all stakeholders and other interested parties to accelerate the development of Tanzania's gas production, infrastructure and markets. Second, the Company has put an immediate priority on the acquisition of two new high potential oil prospects that can be drilled within two years.\nWe have identified the challenges that stand in the way of achieving these goals and are committed to address them through a combination of internal and external actions. At the same time we have initiated a strategic review to find ways to accelerate the monetisation of Tanzania's gas reserves. Orca intends to pursue this goal in a spirit of partnership and respect for the interests of Tanzania, our partners, our shareholders and employees.\n\nMonetising gas reserves in Tanzania\n\nOrca's initial monetising objective is to further develop and increase the natural gas processing and transportation infrastructure in Tanzania. This will give Orca greater access to Additional Gas and help monetise existing Songo Songo 2P gross reserves of 490 Bcf. This is sufficient to supply a daily average of 100 to 120 MMcfd of Additional Gas (140 - 160 MMcfd including Protected Gas) on an annual basis. The Songo Songo infrastructure capacity is currently constrained by a gas processing limit of 90 MMcfd.\nDuring Q1 2010, Orca continued infrastructure expansion discussions with Songas Limited, the owner of the Songo Songo gas processing plant and EWURA, Tanzania's energy regulator. The objective is to implement a long term infrastructure expansion (the "Expansion Project") that will increase the infrastructure capacity to 144 MMcfd. Talks are currently on track for the Expansion Project to achieve financial closure by Q1 2011 to enab...