{"id":13427,"date":"2023-02-27T11:45:54","date_gmt":"2023-02-27T11:45:54","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=13427"},"modified":"2023-03-09T11:53:45","modified_gmt":"2023-03-09T11:53:45","slug":"tanzania-orca-energy-group-inc-announces-independent-reserves-evaluation-for-year-end-2022","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-orca-energy-group-inc-announces-independent-reserves-evaluation-for-year-end-2022\/","title":{"rendered":"TANZANIA: Orca Energy Group Inc. Announces Independent Reserves Evaluation for Year End 2022"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The Company\u2019s conventional natural gas reserves as at December 31, 2022 for the period to the end of the primary (25 year) term of the production sharing agreement with the Tanzanian Petroleum Development Corporation (the TPDC) have been evaluated by independent petroleum engineering consultants McDaniel &amp; Associates Consultants Ltd. in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 \u2013&nbsp;<em>Standards of Disclosure for Oil and Gas Activities<\/em>. The Songo Songo PSA expires upon the expiry of TPDC\u2019s Songo Songo licence in respect of the Songo Songo gas field in October 2026. The preparation date of the independent reserves evaluation prepared by McDaniel is February 24, 2023 and the effective date of the evaluation is December 31, 2022.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">All the Company\u2019s reserves are located in Tanzania. Reserves included herein are stated on a Company gross reserves basis unless noted otherwise. Company gross reserves are the total of the Company\u2019s working interest share in reserves before deduction of royalties owned by others and without including any royalty interests of the Company, and are based on the Company\u2019s 92.07 percent ownership interest in the reserves following the transaction with Swala Oil &amp; Gas (Tanzania) plc described in Note 3 to the tables below.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Company\u2019s Board of Directors has reviewed and approved the McDaniel Report. Additional reserves information required under NI 51-101 is included in Orca\u2019s reports relating to reserves data and other oil and gas information under NI 51-101, which will be filed on its profile on SEDAR at&nbsp;<a href=\"http:\/\/www.sedar.com\/\">www.sedar.com.<\/a>&nbsp;The following discussion is subject to a number of cautionary statements, assumptions, contingencies and risks as set forth in this news release.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Highlights<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Total Proved (\u201c<strong>1P<\/strong>\u201d) Gross Company conventional natural gas reserves at year ended December 31, 2022, were 141 billion standard cubic feet (\u201c<strong>Bcf<\/strong>\u201c) compared to 160 Bcf at year end 2021, representing a 12% decrease.<\/li>\n\n\n\n<li>Total Proved plus Probable (\u201c<strong>2P<\/strong>\u201d) Gross Company conventional natural gas reserves at year ended December 31, 2022, were 167 Bcf compared to 188 Bcf at year end 2021, representing an 11% decrease.<\/li>\n\n\n\n<li>The reduction in Gross Company 1P reserves from year end 2021 to year end 2022 was primarily attributed to 2022 gas production and the number of years remaining on the Songo Songo Licence. The reduction in reserves was attributed to a 21% reduction in the time remaining until the expiry of the current Songo Songo Licence (3.8 year remaining at year end 2022 versus 4.8 years at year end 2021), which was partially offset by increased Company conventional natural gas sales and forecasts (which will be classified as Additional Gas (as defined in the Songo Songo PSA) until the expiry of the current Songo Songo Licence in October 2026).<\/li>\n\n\n\n<li>The Company had record gas sales of 29 Bcf in 2022, representing an increase of approximately 42% compared to year end 2021. With the installation and commissioning of inlet compression at the Songas Gas plant in March 2022, the Company was able to contribute to a significant increase in gas to power generation caused in part due to drought conditions in Tanzania throughout 2022 and the commissioning of the Kinyerezi 1 Power Plant extension in Q4 2022.<\/li>\n\n\n\n<li>Net Present Value of 1P future net revenue discounted at 10% was $147.2 million at year end 2022, compared to $177.8 million at year end 2021, representing a 17% decrease.<\/li>\n\n\n\n<li>Net Present Value of 2P future net revenue discounted at 10% was $170.7 million at year end 2022, compared to $209.9 million at year end 2021, representing a 19% decrease.<\/li>\n\n\n\n<li>The reductions in net present values of 1P future net revenues from year end 2021 to year end 2022 was primarily attributed to lower reserves at year end 2022 as a result of the reduced number of years outstanding on the current Songo Songo Licence and an increased need for future development capital to supply increased gas sales.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The Company\u2019s conventional natural gas reserves as at December 31, 2022 for the period to the end of the primary (25 year) term of the production sharing agreement with the &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-orca-energy-group-inc-announces-independent-reserves-evaluation-for-year-end-2022\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":13428,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,7443,11],"tags":[11102,8153,5914,2466,2543],"class_list":["post-13427","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-eastern-africa","category-top-news","tag-mcdaniel-associates","tag-orca-energy","tag-swala-oil-gas","tag-tanzania","tag-tpdc","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Tanzania-Songo-Songo.jpg?fit=347%2C372&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-3uz","jetpack-related-posts":[{"id":6201,"url":"https:\/\/www.oilnewskenya.com\/index.php\/orca-exploration-receives-government-approval-additional-gas-plan-2-songo-songo-field\/","url_meta":{"origin":13427,"position":0},"title":"Orca Exploration Receives Government approval of Additional Gas Plan 2 from the Songo Songo Field","author":"","date":"July 29, 2017","format":false,"excerpt":"Orca Exploration Group has announced the approval of the Second Additional Gas Plan (AGP-2) by the Government of Tanzania, more than doubling the available volume of Additional Gas for sale from the Songo Songo Field. Under the Production Sharing Agreement for the Songo Songo gas field, production is identified as\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/08\/PanAfrican-Energy-Tanzania-Ltd-East-Africa-.jpg?fit=645%2C331&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/08\/PanAfrican-Energy-Tanzania-Ltd-East-Africa-.jpg?fit=645%2C331&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/08\/PanAfrican-Energy-Tanzania-Ltd-East-Africa-.jpg?fit=645%2C331&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":330,"url":"https:\/\/www.oilnewskenya.com\/index.php\/factfile-songo-songo-gas-development-and-power-generation-project-tanzania\/","url_meta":{"origin":13427,"position":1},"title":"Factfile: Songo Songo Gas Development and Power-Generation Project, Tanzania","author":"Samuel Kamau Mbote","date":"January 6, 2014","format":false,"excerpt":"The Songo Songo gas field is located on and offshore Songo Songo island, about 15km from the Tanzanian mainland and 200km south of the commercial capital, Dar es Salaam. The project serves two onshore and three offshore natural gas wells at the island, the gas from the wells being piped\u2026","rel":"","context":"In &quot;Elsewhere in Africa&quot;","block_context":{"text":"Elsewhere in Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/elsewhere-in-africa\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/01\/1-songo-songo.jpg?fit=400%2C300&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":6198,"url":"https:\/\/www.oilnewskenya.com\/index.php\/swala-oil-gas-seeks-minority-investment-orca-group\/","url_meta":{"origin":13427,"position":2},"title":"Swala Oil &#038; Gas Seeks minority investment in the Orca Group","author":"","date":"August 15, 2017","format":false,"excerpt":"Orca Exploration Group has confirmed that it is in discussions with Swala Oil & Gas (Tanzania) plc regarding a possible minority investment in PAE PanAfrican Energy Corporation (PAEM), a Mauritius-registered company that is a wholly-owned subsidiary of the Company. Orca which is the operator of the 879 Bcf Songo Songo\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/08\/swala-energy-orca-exploration.png?fit=331%2C303&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2635,"url":"https:\/\/www.oilnewskenya.com\/index.php\/orca-considering-first-phase-offshore-development-tanzania\/","url_meta":{"origin":13427,"position":3},"title":"Orca considering first phase of offshore development in Tanzania","author":"","date":"February 26, 2015","format":false,"excerpt":"Orca exploration has said it is contemplating a first phase of offshore development consisting of working over two existing wells (SS-5 and SS-9) that are currently suspended in order to fill the existing Songas infrastructure to capacity and provide operational redundancy. This follows under-utilization of the existing infrastructure with the\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2015\/02\/Songo-Songo-Orca-exploration.png?fit=302%2C417&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":13424,"url":"https:\/\/www.oilnewskenya.com\/index.php\/tanzania-orca-energy-provides-operational-update-2\/","url_meta":{"origin":13427,"position":4},"title":"TANZANIA: Orca Energy Provides Operational Update","author":"","date":"February 1, 2023","format":false,"excerpt":"OPERATIONAL Production Gross sales of conventional natural gas, classified as Additional Gas (as defined in the PSA (as defined herein)) (\u201cgas sales\u201d) averaged 95.5 MMscfd during Q4 2022 which increased average gas sales to 86.8 MMscfd for the year 2022, representing a 42% increase from 2021.\u00a0 Orca forecasts average gross\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Tanzania-gas-distribution.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Tanzania-gas-distribution.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Tanzania-gas-distribution.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Tanzania-gas-distribution.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/03\/Tanzania-gas-distribution.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":4496,"url":"https:\/\/www.oilnewskenya.com\/index.php\/commissioning-of-tanzanias-songo-songo-island-gas-set-for-april-2016\/","url_meta":{"origin":13427,"position":5},"title":"Commissioning of Tanzania\u2019s Songo Songo Island gas plant Set for April 2016","author":"","date":"March 15, 2016","format":false,"excerpt":"The Tanzania Petroleum Development Corporation (TPDC) has provided a revised work schedule in the \u00a0Kiliwani North license and informed the operator Aminex that the commissioning of the Songo Songo Island gas plant is expected to commence in early April. Aminex which concluded the final well integrity testing of the Kiliwani\u2026","rel":"","context":"In &quot;Top News&quot;","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/kiliwani-north-1-well.png?fit=493%2C556&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/13427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=13427"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/13427\/revisions"}],"predecessor-version":[{"id":13429,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/13427\/revisions\/13429"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/13428"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=13427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=13427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=13427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}