Uganda Exploration
Orca has an option to participate in the exploration, and potential development, of the onshore Lake Albert Rift hydrocarbon basin in northern Uganda.
To earn the opportunity to participate in exploration for hydrocarbons in Uganda, Orca has joined forces with Tower Resources to jointly explore for oil in onshore Exploration Area 5.
Overall exploration activity in Uganda has increased over the last two years and significant seismic and drilling activity is planned in over the next 18 months by a number of licence holders. Two rigs are currently operating in the country and a third rig is expected in the near future. It is estimated that at least 8 wells will be drilled over 2008-2009 by a number of operators.
Exploration Area 5 is currently held 100% by Tower Resources, subject to Orca’s option rights. Under the terms of the agreement Orca can earn a 50% interest in the 6,040 square kilometer area. In consideration for this option, the Company will pay 83.33% of the back-in costs by Tower and the cost of the 2007 seismic programme. If following the seismic programme, Orca exercises its partnership option, it will pay 83.33% of the cost of drilling two exploration wells to a cap of between US$10 and US$15 million (if the wells are tested).