Business
Orca Exploration announces signing of gas supply contract to leading cement producer
TORTOLA, British Virgin Islands, Sept. 18 /CNW/ - Orca Exploration Group Inc ("Orca") announces t...
About this update from Orca Energy Group Inc. Class B
[{"type":"text","content":"\n\n\n\nTORTOLA, British Virgin Islands, Sept. 18 /CNW/ - Orca Exploration Group\nInc ("Orca") announces that it has signed a five year contract with Tanzania\nPortland Cement Company ("TPCC"), a subsidiary of HeidelbergCement, for the\nsupply of gas to a new US$100 million kiln at its Wazo Hill plant in Dar es\nSalaam. The contract is forecast to commence in the first half of 2009 when\nthe kiln is commissioned.\n\n\nInitially, it is forecast that 2 mmscf/d of Additional Gas will be\nsupplied under the contract, but this is expected to increase to in excess of\n6 mmscf/d by 2012 as TPCC overhauls its existing kilns and brings them back on\nproduction to meet increasing demand. TPCC is already connected to the gas\nsupply system and limited additional capital expenditure will be required to\nmeet these Additional Gas sales.\n\n\nThis represents the largest industrial contract signed by Orca and\ndemonstrates increasing confidence by overseas investors in the economic and\npolitical stability of Tanzania.\n\n\nOrca continues to sign up smaller industrial customers in Dar es Salaam\nfrom its 35 kilometers of low pressure pipeline and will commence the sale of\ncompressed natural gas in Q1 2009 to hotels, institutions and industries not\nconnected to the distribution system. The CNG market is expected to expand\nrapidly in 2009 when Orca will look to transport CNG to the industrial centres\nof Morogoro and Tanga. Internal assessments are that this market could grow to\n15 mmscf/d.\n\n\nForward Looking Statements\n\n\nThis disclosure contains certain forward-looking estimates that involve\nsubstantial known and unknown risks and uncertainties, certain of which are\nbeyond Orca Exploration's control, including the impact of general economic\nconditions in the areas in which Orca Exploration operates, civil unrest,\nindustry conditions, changes in laws and regulations including the adoption of\nnew environmental laws and regulations and changes in how they are interpreted\nand enforced, increased competition, the lack of availability of qualified\npersonnel or management, fluctuations in commodity prices, foreign exchange or\ninterest rates, stock market volatility and obtaining required approvals of\nregulatory authorities. In addition there are risks and uncertainties\nassociated with oil and gas operations, ther...