- Orca Energy Group’s (ORC.A) Songo Songo island facility in Tanzania has thus far withstood the impact of the COVID-19 pandemic
- The company has produced an average of 50.6 million cubic feet of natural gas a day through the June quarter
- Orca went on to claim that the Tanzanian tropical rainfalls have affected production more than COVID-19
- However, Tanzania is now entering its dry season, and Orca expects this will lead to an increase in production for the rest of the year
- Orca Energy Group (ORC.A) is up 0.9 per cent and is trading at C$5.65 per share
Orca Energy Group’s (ORC.A) Songo Songo island facility in Tanzania has thus far withstood the impact of the COVID-19 pandemic.
The company has maintained production throughout the pandemic through what it called careful management of the operational team.
The company maintained an average of 50.6 million standard cubic feet a day of production through the June quarter of this year and claim Tanzanian tropical rainfalls have affected production more than COVID-19.
This was down to the Tanzanian hydro-electric infrastructure delivering far more power during the rainy season.
However, Tanzania is now entering its dry season, and Orca expects this will lead to an increase in production for the rest of the year.
The company also revealed at the start of this month that it had signed a contract with the Chinese company China Petroleum and Technology Development Company for the design, supply, installation and commission of natural gas compressors on the facility.
The compressors are to be designed to work with the refrigeration already installed on the facility to address the declines in reservoir pressure the site has experienced.
Nigel Friend, CEO of Orca, said the was very pleased with how the company had performed during the first six months of 2020, despite a challenging backdrop.
“We are well placed to finance and deliver a number of essential capital projects which are critical to sustaining gas production in Tanzania through to the end of the license period.
“The Government of Tanzania has shown a long-term commitment to natural gas through its investment in gas infrastructure and we will continue to develop the Songo Songo field with our pattern the Tanzania Petroleum Development Corporation, to fuel economic growth and prosperity in country.
“We are delighted to have engaged Canaccord and Invested who are expected to help the company expand its institutional investor bases in Europe and Africa,” he said.
Orca Energy Group (ORC.A) is up 0.9 per cent and is trading at C$5.65 per share at 11:40 am EDT.
