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Songo Songo Gas Field

The Songo Songo gas field commenced commercial operation in July 2004.  Natural gas produced from the Songo Songo discovery blocks is processed through a gas plant on Songo Songo Island, transported by a 25-kilometre 12” offshore pipeline and a 207-kilometre 16” onshore pipeline to the Dar es Salaam area. Gas, which is sold to Songas for use in turbines 1 – 5 at the Ubungo Power Plant in Dar es Salaam and the Wazo Hill cement plant is called “Protected Gas.”  “Additional Gas” is sold by the Company to the power sector and industrial customers.

The Songo Songo gasfield is a world-class reservoir, offshore Tanzania, East Africa, consisting of two development licenses designated the Discovery Blocks and totalling 41,630 acres. As of 31 December 2006, McDaniel & Associates Consultants Ltd. assessed Orca Exploration’s established Additional Gas 1P Songo Songo reserves at 295.4 bcf and total proved and probable reserves (2P) at 470.5 bcf. This valuation is a 10% increase in Orca’s 1P reserves and an 89% increase in Orca’s 2P reserves over the previous year.