Orca to explore in Africa, push Tanzania gas

The operator of Tanzania's Songo Songo gas project said it will explore for oil in sub-Saharan Africa next year as it continues to develop the field, find new gas markets, and evaluate the block.

By OGJ editors
HOUSTON, June 15 -- The operator of Tanzania's Songo Songo gas project said it will explore for oil in sub-Saharan Africa next year as it continues to develop the field, find new gas markets, and evaluate the block.

Songo Songo field's deliverability rose to 160 MMcfd with a workover in the quarter ended Mar. 31 and should grow to 210 MMcfd on completion of the SS-10 directional well in mid-2007, said Orca Exploration Group Inc., Road Town, Tortola, British Virgin Islands, formerly East Coast Energy Corp. Proved and probable reserves were 648 bcf at the end of 2006, up 14% on the year, and further appraisal and exploratory drilling are in the offing (OGJ Online, May 2, 2006).

The company, which plans to connect four to six new industrial customers in the second half, forecasts average sales of 21-23 MMcfd in 2007. It is eying other markets in Tanzania and possibly Kenya.

Pipeline capacities are 105 MMcfd from Songo Songo Island to the mainland and 70 MMcfd to Dar es Salaam, and infrastructure expansion may be required in 2008.

The African project selection criteria include low entry cost, large exploration upside, and the potential to mature projects in a relatively short time, Orca said.

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