Continental Focus, International Reach

Orca Completes Songo Songo Offshore Program

Monday, February 22, 2016

Orca Exploration saw the successful completion of its offshore workover and drilling program, the offshore program, on the Songo Songo Main Field Development in Tanzania. The company release the Paragon M826 mobile rig, which was used in the offshore program.

The offshore program of the Songo Songo Main Field development program included workovers on three existing wells (SS-5, SS-7, and SS-9) and the drilling of one new development well, SS-12. In addition, Phase 1 of the development program also includes the completion of the SS-12 production platform, flowlines, and tie-in facilities connecting SS-12 to its gas processing facilities as well as the refrigeration system required to ensure field production stability to enable the company to produce wells into the newly built National Natural Gas Infrastructure Project (NNGIP).

The total cost of Phase 1 of the development program was originally estimated to cost $120 million, however, now that the offshore program has been completed, the Company expects that Phase 1 of the development program to have a total cost of under $80 million with costs incurred to date of approximately $68 million. The reduction in costs was a result of being able to successfully workover the three wells without having to do any side-tracking, efficiencies achieved during the work-overs, and work scope changes which reduced the original estimated time required to complete Phase 1. The full development program provides for additional workovers, compression systems and additional infrastructure to ensure all production commitments are met through to the end of the license in 2026.

Through the program Orca was able to successfully increase production capacity from approximately 83 Mmcf/d prior to the development program to current production capabilities of approximately 150 Mmscf/d. Upon completion of the platform for SS-12 and the tie-in to production facilities, production capabilities are expected to be in excess of 185 Mmscf/d. The field is now capable of both filling the existing Songas infrastructure to capacity of approximately 102 Mmscf/d, as well as providing additional gas volumes to the NNGIP.

Orca is currently negotiating terms for the sales agreement to the NNGIP with the TPDC. Until the agreement is signed, the company’s production is limited by infrastructure and contractual constraints, producing an average of 90 Mmscf/d for Q4 2015 and is expected to average 94 Mmscf/d in 2016.


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