Business
Orca Exploration announces new oil exploration venture in Uganda
Orca Exploration announces new oil exploration venture in Uganda.
About this update from Orca Energy Group Inc. Class B
[{"type":"text","content":"\n\n\n\nROAD TOWN, Tortola, British Virgin Islands, Aug. 28 /CNW/ - Orca\nExploration Group Inc ("Orca") or (the "Company") announces that it has\nentered into an option with Neptune Petroleum (Uganda) Limited ("Neptune"), a\nwholly owned subsidiary of Tower Resources plc, to earn a 50% interest in the\n6,040 sq km Exploration Area 5 license acreage, north western Uganda. The area\nis currently licensed 100% to Neptune.\n\n\n"This is the first step in Orca's announced intention to acquire an\ninterest in two high potential oil exploration and development opportunities,"\nstated Peter Clutterbuck, Orca's President and CEO. "We are very pleased to be\nworking with Tower Resources and expect to begin a 2D seismic program of\n250-300 kilometers in November 2007. Uganda is entering a very exciting phase\nin the development of its oil resources and Orca and Tower are looking forward\nto being part of it. We are also pleased to be working with Tower since both\nour companies have the same respectful and community-friendly approach to\nconducting business in Africa."\n\n\nUnder the terms of the agreement, and in consideration for granting an\ninterest option, Orca will fund 83.33% of the 2007 2D seismic programme and\ncertain past costs, subject to a maximum carried cost of US$6 million. On\ncompletion of the interpretation of the seismic data, expected by Q1 2008,\nOrca will have the exclusive right to acquire a 50% working interest in\nExploration Area 5 in return for funding 83.33% of two exploration wells. The\ncarry to drill the wells is capped at a maximum cost to the Company of between\nUS$10 million and US$15 million depending on whether the wells are tested.\nContingent on the results of the seismic program, drilling of the two\nexploration wells could begin as early as mid-2008.\n\n\nIf Orca exercises its option to become a 50% partner, Orca will assume\nmanagement responsibility for all drilling activities. Neptune will continue\nas operator under the licence for a period of three years.\n\n\nOrca Exploration Group Inc. is a well-financed, international public\ncompany engaged in hydrocarbon exploration, development and marketing. Orca's\noperations are directed from offices in Dar es Salaam, Tanzania. The Company\nis focused on increasing shareholder value through the explora...