TSX-V: ORC.A, ORC.B
TORTOLA, British
Virgin Islands, Sept. 7, 2012
/CNW/ - Orca Exploration Group Inc. ("Orca" or "the Company")
announces that the La Tosca-1 exploration well onshore Italy has reached total depth and has been
plugged and abandoned having encountered gas shows. La Tosca-1
commenced drilling operations on the 6th
August 2012 evaluating the exploration potential of the gas
prospect mapped from 3D seismic on the Longastrino permit. Drilling
reached total depth of 2335m on 27th August
2012.
As the well was not completed, Orca has earned a
70% working interest and, subject to government approval,
operatorship in the block. Under the terms of the farm-in
agreement, Orca was to 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.
The positive expectations prior to drilling
were, to an extent, supported by wireline logging but the
indications were of more limited reservoir sand development than
expected from extrapolation of data from nearby wells. The
considered conclusion was that the data did not provide a
sufficiently strong economic case to warrant well completion and
testing. The well is situated within the prolific gas fairway of
the Eastern Po Valley basin, with the Alfonsine gas field located
in close proximity. Once approved as the new operator, Orca intends
to review the technical and drilling data to determine whether to
continue exploration on the block.
W. David Lyons,
Orca's Chairman and CEO commented, "While we are naturally
disappointed with the well results, the La Tosca-1 drilling was
well executed, significantly ahead of schedule and on budget. The
gas shows encountered are encouragement for further work to be
undertaken to determine the future potential in the area."
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, Orca plans with respect
to continued exploration on the block and work to be undertaken to
determine further potential in the area. 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
risk that Orca determines not to continue further exploration on
the block; the impact of general economic conditions; 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; failure to
obtain expected results from drilling of wells; changes in laws;
imprecision in reserve estimates; the production and growth
potential of the Company's assets; obtaining required approvals of
regulatory authorities; risks associated with negotiating with
foreign governments; ability to access sufficient capital; and risk
that the Company 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 not limited to,
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 Company 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; 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.