Orca Exploration Group Inc announces that the Board of Directors has approved a US$11 million capital program for its gas asset in Tanzania in 2009. The end of 2009 will allocate the majority of the capital to the expansion of Orca’s downstream distribution systems so as to increase the sale of gas to the industrial customers in Dar es Salaam and Morogoro by a forecast 5 mmscf/d. It will include the construction of 10 kilometers of additional low-pressure pipeline, the installation of a new pressure reduction station at the cement producer, Tanzania Portland Cement Company, and the expansion of Orca’s compressed natural gas facilities.
Orca will fund this capital program from internally generated cash flow while increasing its current cash deposits of US$10 million over the course of the year.
The demand for natural gas continues to grow in Tanzania and Orca remains committed to identify ways to increase reserves, expand markets, reduce costs.