Orca Energy through its subsidiary, PanAfrican Energy Tanzania last month signed an agreement with Exalo Drilling S.A. for the workover of three onshore wells on Songo Songo Island commencing this month, September 2021.
The 2021 workover program, which will see the wells recompleted with corrosion resistant chrome tubing, will return two wells to production and ensure the third well can continue to produce safely.
To be specific the work program includes tubing replacement at the SS 10 well and the reactivation of SS-4 and SS-3 wells.
The 2021 workover program, estimated at a gross cost of $21.4 million, will increase the production potential from the world class Songo Songo reservoir and ensure the Company remains the leading gas supplier in Tanzania. The Company supplies gas to over 40 industrial customers in Dar es Salaam and is responsible for the production of approximately 60% of gas generated power in the country.
Jay Lyons, Chief Executive Officer, commented:
”With the installation of compression scheduled for completion in 2022, the forthcoming workover of the wells will enable the Company to maintain and increase production for several years as required to reliably meet increasing demand for natural gas as Tanzania’s industrialisation acceleratesand will ensure Tanzanians continue to benefit from their rich natural resources.”