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Songo Songo Gas Field To Increase Capacity Via USD 120 Million Expansion Programme

Natural gas exploration Orca Exploration Group Inc. has been developing plans to embark upon a first phase of Songo Songo gas field development worth USD 120 million.

The field currently produces approximately 91 million standard cubic feet per day (“MMcfd”), which is less than the existing Songas Limited (“Songas”) infrastructure capacity of approximately 102 MMcfd.

In order to fill the existing Songas infrastructure to capacity and provide operational redundancy, the company is contemplating a first phase of offshore development consisting of working over two existing wells (SS-5 and SS-9) that are currently suspended, working over an existing production well (SS-7) and drilling a new offshore development well (SS-12).

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Additional productive capacity would be available to supply some volumes to the National Natural Gas Infrastructure Project (“NNGIP”) pipeline which is approximately 98%.

The expansion programme is contemplated to occur from Q3 2015 to Q1 2016.

Financing of approximately half of the USD120 million estimated capital cost is in the process of receiving internal approvals by the International Finance Corporation (“IFC”) of the World Bank Group, the companies indicated.

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