TSX-V: ORC.A, ORC.B
TORTOLA, British Virgin
Islands, Dec. 14, 2015 /CNW/ -
Orca Exploration Group Inc. ("Orca" or the "Company") announces
that its wholly owned subsidiary, Pan African Energy Tanzania
Limited ("PAET") has made an initial drawdown of US$20 million from the available US$60 million International Finance Corporation
("IFC") loan facility which was signed on 29
October 2015 (the "Loan"). PAET intends to make additional
drawdowns of the Loan which will be subject to meeting all
conditions precedent on or before the time of drawdown.
The US$20 million drawdown will be
used to fund part of the first phase of PAET's Songo Songo natural
gas field development programme. The Songo Songo development
programme was designed to ensure the safety of existing suspended
and operating wells and to increase production capacity to
approximately 190 million standard cubic feet per day ("MMscfd") of
natural gas. The programme will also provide operating
redundancy and field deliverability to maintain current power and
industrial gas sales plus provide additional deliverability to
supply future gas sales.
Since programme commencement, existing production wells SS-5,
SS-7 and SS-9 have been successfully worked over and recompleted.
The Company is currently drilling a new production well SS-12,
which is expected to be completed by mid-January 2016 after which time the initial
phase of development will be complete. The success of the workovers
to date has increased field productive capacity from approximately
83 MMscfd to a current productive capacity of approximately 150
MMscfd. When the programme is completed the field is expected to be
able to produce approximately 190 MMscfd, which would both fill the
existing Songas infrastructure to its capacity of approximately 102
MMscfd, and provide additional gas volumes to the newly
commissioned National Natural Gas Infrastructure Project ("NNGIP"),
as and when contracted.
"We are delighted with the success of the current workover and
drilling programme," said Orca Chairman and Chief Executive Officer
David Lyons, "The IFC financing has
enabled the Company to significantly increase production capacity
in Tanzania and ensure the
continued reliable supply of natural gas to our customers."
About Orca Exploration Group Inc.
Orca is an international public company engaged in natural gas
exploration, development and supply in Tanzania through its wholly-owned subsidiary,
PAET, as well as oil and gas appraisal in Italy. Orca trades on the TSX Venture Exchange
under the trading symbols ORC.A and ORC.B.
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward Looking Information
This news release contains forward-looking information. More
particularly, this news release contains statements and information
concerning, but not limited to, the Company's plans for the funds
received on drawdown of the Loan; the terms and design of the Songo
Songo development programme, including the effect of the Songo
Songo development programme on restoring and expanding field
productive capacity and the anticipated amount of the increase in
field productive capacity; Orca's expectations that when the Songo
Songo development programme is completed that it will be capable of
both filling the existing Songas infrastructure to capacity and
providing additional gas volumes available to the newly
commissioned NNGIP as and when contracted; the estimated full
productive capacity upon completion of the Songo Songo development
programme; the Company's drilling plans and the expected timing of
completion of the SS-12 production well; and other matters.
Although management believes that the expectations reflected in the
forward-looking information are reasonable, it cannot guarantee
future agreement, levels of activity, performance or achievements
since such expectations are inherently subject to significant
uncertainties and contingencies. As a consequence, actual results
may differ materially from those anticipated in the forward-looking
information.
Forward-looking information involves substantial known and
unknown risks and uncertainties, certain of which are beyond Orca's
control, and many factors could cause the actual results to differ
materially from those expressed or implied in the forward-looking
information presented by Orca, including, but not limited to: the
failure to satisfy the conditions precedent to availability of
further drawdowns under the Loan; risk that the drilling rigs fail
to fulfill the terms of drilling contracts; failure to restore and
expand field productive capacity under the Songo Songo development
programme; risk that Orca is unable to access the additional
funding required to proceed with the entire Songo Songo development
programme; failure to achieve the anticipated level of field
productive capacity under the Songo Songo development programme;
risk that the Songo Songo development programme, when completed, is
not capable of both filling the existing Songas infrastructure to
capacity and providing additional gas volumes available to the
newly commissioned NNGIP as and when contracted; risk that the
Songo Songo development programme is not completed as planned and
the actual cost to undertake the Songo Songo development programme
exceeds the Company's estimates; risk that the contingencies
related to the development work for the full field development plan
for Songo Songo are not satisfied; the impact of general economic
conditions in the areas in which Orca operates; changes in laws and
regulations including changes in how they are interpreted and
enforced; the lack of availability of qualified personnel or
management; fluctuations in commodity prices, foreign exchange
and/or interest rates; stock market volatility; obtaining certain
required contractual approvals and approvals of certain regulatory
authorities; risks associated with negotiating with foreign
governments; risk that the Company will be required to pay
additional taxes and penalties; delays in drilling plans; failure
to obtain expected results from drilling; inability to access
sufficient capital; and risk that the Company will not be able to
fulfill its obligations, including under the Loan. Actual results,
performance or achievements could differ materially from those
expressed in, or implied by, the forward-looking information and,
accordingly, no assurances can be given that any of the events
anticipated by the forward-looking information will transpire or
occur, or if any of them do so, what benefits Orca will derive
therefrom. Readers are cautioned that the foregoing list of factors
is not exhaustive.
Such forward-looking information is based on certain
assumptions made by Orca in light of its experience and current
knowledge of the circumstances, as well as other factors Orca
believes are appropriate in the circumstances, including, but not
limited to: that the conditions precedent to availability of
further drawdowns under the Loan will be satisfied; the
availability of the proceeds of the Loan to fund the Songo Songo
development programme; that the Company will have all necessary
regulatory and contractual approvals related to certain aspects of
the Songo Songo development programme and the Loan; that the
Company will have sufficient cash flow, debt or equity sources or
other financial resources required to fund its operations; that the
Company will have access to the additional funding required to
proceed with the entire Songo Songo development programme; that the
Company can expand Songo Songo development beyond the existing
Songas infrastructure and supply gas to the NNGIP; the estimated
cost to undertake the Songo Songo development programme;
infrastructure capacity; the ability of Orca to obtain equipment
and services in a timely manner to carry out exploration,
development and exploitation activities; future capital
expenditures; availability of skilled labour; conditions in general
economic and financial markets; commodity prices will not further
deteriorate significantly; current or, where applicable, proposed
industry conditions, laws and regulations will continue in effect
or as anticipated; and other matters.
The forward-looking information contained in this news
release is made as of the date hereof and Orca undertakes no
obligation to update publicly or revise forward-looking
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities
laws.
SOURCE Orca Exploration Group Inc.