Orca Exploration announces La Tosca-1 Well Plugged & Abandoned with Gas Shows
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.