Orca Exploration Group to enter into new oil exploration agreement in Uganda
In the end of August 2007, BVI-based Orca Exploration Group Inc has announced the start of the new oil exploration venture in north western Uganda, to earn a 50% interest in the 6,040 sq km Exploration Area. Orca Exploration has entered into agreement with Neptune Petroleum (Uganda) Limited, a wholly owned subsidiary of Tower Resources plc – an independent oil and gas exploration company focused on sub-Saharan Africa region. Currently this company has a licence to explore 100% of the area.
Under the terms of the above agreement, for granting an interest option Orca will fund 83.33% of the 2007 2D seismic programme, and certain past costs, subject to a maximum carried cost of US$6 million. The BVI company expects to complete seismic data interpretation by the end of the first quarter 2008; after that, Orca Exploration will have the exclusive right to acquire a 50% working interest in Exploration Area 5, in return for funding 83.33% of two exploration wells. Depending on the seismic programme’s results, drilling of the wells should begin in mid-2008. The drilling programme will cost the company between US$10 million and US$15 million.
If Orca exercises its option to become a 50% partner, it will assume management responsibility for all drilling activities. Neptune Petroleum will work as licensed operator for three years.
Orca Exploration Group Inc. is an international public company headquartered in the British Virgin Islands, and conducting its operations from Dar es Salaam, Tanzania. Renamed some time ago (formerly EastCoast Energy Corporation), the BVI company now trades on the TSXV under the trading symbols ORC.B and ORC.A.