Orca Exploration announces signing of gas supply contract to leading cement producer
TORTOLA, British Virgin Islands -- Orca Exploration Group Inc ("Orca") announces that it has signed a five year contract with Tanzania Portland Cement Company ("TPCC"), a subsidiary of HeidelbergCement, for the supply of gas to a new US$100 million kiln at its Wazo Hill plant in Dar es Salaam. The contract is forecast to commence in the first half of 2009 when the kiln is commissioned.
Initially, it is forecast that 2 MMscf/d of Additional Gas will be supplied under the contract, but this is expected to increase to in excess of 6 MMscf/d by 2012 as TPCC overhauls its existing kilns and brings them back on production to meet increasing demand. TPCC is already connected to the gas supply system and limited additional capital expenditure will be required to meet these Additional Gas sales.
This represents the largest industrial contract signed by Orca and demonstrates increasing confidence by overseas investors in the economic and political stability of Tanzania.
Orca continues to sign up smaller industrial customers in Dar es Salaam from its 35 kilometers of low pressure pipeline and will commence the sale of compressed natural gas in Q1 2009 to hotels, institutions and industries not connected to the distribution system. The CNG market is expected to expand rapidly in 2009 when Orca will look to transport CNG to the industrial centres of Morogoro and Tanga. Internal assessments are that this market could grow to 15 MMscf/d.
Forward Looking Statements
This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond Orca's control, including 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 and obtaining required approvals of regulatory authorities. 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, including the amounts of proceeds, that Orca will derive therefrom.
For further information please contact:
Peter Clutterbuck, President and CEO
+255 (0)7768 120727
Nigel A Friend, CFO
+255 (0)22 2138737