Overview

Orca Exploration Group Inc. operates the 879 Bcf Songo Songo natural gas field under a Production Sharing Agreement (PSA) with the Tanzania Petroleum Development Corporation (TDPC). 195 Bcf is allocated for use by Songas Limited and 684 Bcf is produced, marketed and sold by Orca Exploration. The license has a total area of approximately 41,630 acres (170 km2). The blocks are located in shallow water approximately 15 kilometres off the coast and 200 kilometres south of Dar es Salaam. The license contains the large Songo Songo gas field which is positioned on and slightly offshore Songo Songo Island. The main reservoir is developed in Lower Cretaceous aged Neocomian to Albian sandstones (Neocomian), while Upper Cretaceous aged Cenomanian sands that lie unconformably on the Lower Cretaceous provide additional reservoir when developed.

As at December 31 2009 the audited Songo Songo Proved and Probable (2P) Gas Initially in Place (GIIP) is 1,433 Bcf, while the remaining recoverable 2P reserves are 879 Bcf. Orca estimates the Base (mid) Case GIIP to be 1,571 Bcf. To the end of 2009, 100 Bcf of gas (sales plus fuel and flare) has been produced in approximately five and a half years of uninterrupted production.

Orca operates a gas processing facility on Songo Songo Island on behalf of Songas Limited, the gas processing facility owner, on a no loss, no gain basis. The plant supplies natural gas to a 25 km 12” marine pipeline and a 207 km 16” land pipeline that extends north along the coast to Dar es Salaam. Songo Songo is Tanzania’s first natural gas development.