Business
Orca Exploration reports increased natural gas sales from Tanzanian operations and Q3 results
TORTOLA, British Virgin Islands, Nov. 29 /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. 29 /CNW/ - Orca Exploration Group\nInc ("Orca Exploration" or the "Company") announces its results for the\nquarter ended 30 September 2007.\n\n\nQuarter Highlights\n\n\n- Generated a profit before tax of US$3.0 million (Q3 2006:\n US$1.3 million) with funds from operations before working capital\n changes of US$3.7 million (Q3 2006: US$1.6 million). The increase in\n profitability is primarily the result of an increase in sales volumes\n to the power sector.\n\n- Satisfied the conditions precedent for the option agreement with\n Tower Resources plc that gives Orca the opportunity to become a 50%\n interest holder in the 6,040 square kilometer Exploration Area 5 in\n Uganda.\n\n- Shortly after the quarter end, successfully completed the SS-10 well,\n which was tested at rates up to 52 mmscf/d. It is forecast that the\n well will be able to flow at a rate in excess of 55 mmscf/d once on\n production. The well is expected to be one of the best producers in\n the field and takes the deliverability of the six wells in the field\n to greater than 200 mmscf/d.\n\n- Increased Q3 2007 sales of Additional Gas to the power sector by 165%\n to 1,974 mmscf (an average of 21.5 mmscf/d) compared with 744 mmscf\n in Q3 2006, at an average price of US$2.19/mcf (Q3 2006:\n US$1.69/mcf).\n\n- Sold 442 mmscf of Additional Gas to Dar es Salaam industrial\n customers or an average of 4.8 mmscf/d. This represented a 10%\n decrease on Q3 2006 when 491 mmscf was sold. However, average\n industrial prices increased by 11% to an average of US$9.58/mcf (Q3\n 2006: US$8.63/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- Completed the installation of an additional 8 kilometers of low\n pressure distribution pipeline to improve security of supply. Four\n new industrial customers are in the process of being connected from\n this new line.\n\n- Submitted a proposal to Songas that would enable the gas processing\n capacity to be increased by approximately 25 - 35 mmscf/d. It is\n estimated that the proposal would take less than six months to\n implement and could be introduced before the third and fourth gas\n processing trains are installed by Songas.\n\n- Co...