TSX-V: ORC.A, ORC.B
TORTOLA, British
Virgin Islands, Aug. 7, 2012
/CNW/ - Orca Exploration Group Inc. ("Orca") is pleased to announce
that it has commenced drilling operations with its partner and
operator, Northern Petroleum Plc ("Northern"), on the La Tosca-1
well. The well will evaluate the exploration potential of a gas
prospect mapped from 3D seismic on the Longastrino Permit. The well
is situated within the prolific gas fairway of the Eastern Po
Valley basin, with the Alfonsine gas field located in close
proximity to the prospect.
The La Tosca prospect is being drilled using HDI
Leonardo Drillmec HH220 rig and is expected to take up to forty
days to reach total depth. Under the terms of the farm-in
agreement, Orca will pay 100% of the costs of the La Tosca-1 well
up to €4.3 million and 70% thereafter for the drilling phase,
together with back-in costs of €0.6 million to earn a 70% interest
in the block. If the well is tested and completed, Orca will earn
an additional 5% (taking it to 75%) by paying 100% of the testing
costs up to €1.3 million and 75% thereafter.
Orca Exploration Group Inc. is an international
public company engaged in natural gas exploration, development and
supply in Tanzania through the
wholly-owned subsidiary PanAfrican Energy Tanzania Limited, as well
as oil and gas appraisal in Italy.
Orca trades on the TSXV under the trading symbols ORC.B and
ORC.A.
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 Statements
This press release contains forward-looking
statements. More particularly, this press release contains
statements concerning, but not limited to, the use of the La
Tosca-1 well to evaluate the exploration potential of a gas
prospect on the Longastrino Permit; method of drilling the La
Tosca-1 well and expected timing to reach total depth; and Orca's
anticipated earnings from the well if the well is tested and
completed. Although management believes that the expectations
reflected in the forward-looking statements are reasonable, it
cannot guarantee future results, levels of activity, performance or
achievement since such expectations are inherently subject to
significant business, economic, operational, competitive, political
and social uncertainties and contingencies. Many factors could
cause Orca's actual results to differ materially from those
expressed or implied in any forward-looking statements made by
Orca.
These forward-looking statements involve
substantial known and unknown risks and uncertainties, certain of
which are beyond Orca's control, including, but not limited to, the
impact of general economic conditions in the areas in which Orca
operates; civil unrest; industry conditions; changes in laws and
regulations including the adoption of new environmental laws and
regulations and changes in how they are interpreted and enforced;
increased competition; the lack of availability of qualified
personnel or management; fluctuations in commodity prices; foreign
exchange or interest rates; stock market volatility; competition
for, among other things, capital, drilling equipment and skilled
personnel; failure to obtain required equipment for drilling;
delays in drilling plans; failure to obtain expected results from
drilling of wells; changes in laws; imprecision in reserve
estimates; the production and growth potential of the Orca's
assets; obtaining required approvals of regulatory authorities;
risks associated with negotiating with foreign governments; ability
to access sufficient capital; and risk that the Orca will not be
able to fulfill its obligations. In addition there are risks and
uncertainties associated with oil and gas operations, therefore
Orca's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these
forward-looking estimates and, accordingly, no assurances can be
given that any of the events anticipated by the forward-looking
estimates will transpire or occur, or if any of them do so, what
benefits that Orca will derive therefrom.
Such forward-looking statements are based on
certain assumptions made by Orca in light of its experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors Orca believes are
appropriate in the circumstances, including, but are not limited
to, the ability of Orca to add production at a consistent rate;
infrastructure capacity; commodity prices will not deteriorate
significantly; the ability of Orca to obtain equipment in a timely
manner to carry out exploration, development and exploitation
activities; future capital expenditures; availability of skilled
labour; timing and amount of capital expenditures; uninterrupted
access to infrastructure; the impact of increasing competition;
conditions in general economic and financial markets; effects of
regulation by governmental agencies; that the Orca will have
sufficient cash flow, debt or equity sources or other financial
resources required to fund its capital and operating expenditures
and requirements as needed; current or, where applicable, proposed
industry conditions, laws and regulations will continue in effect
or as anticipated as described herein; and other matters.
The forward-looking statements contained in
this press release are made as of the date hereof and Orca
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
SOURCE Orca Exploration Group Inc.