Orca Exploration Group Inc. has commenced drilling operations with its partner and operator, Northern Petroleum Plc (Northern), on the La Tosca-1 well. The well will evaluate the exploration potential of a gas prospect mapped from 3D seismic on the Longastrino Permit.

The well is situated within the prolific gas fairway of the Eastern Po Valley basin, with the Alfonsine gas field located in close proximity to the prospect.

The La Tosca prospect is being drilled using HDI Leonardo Drillmec HH220 rig and is expected to take up to forty days to reach total depth. Under the terms of the farm-in agreement, Orca will pay 100% of the costs of the La Tosca-1 well up to €4.3 million and 70% thereafter for the drilling phase, together with back-in costs of €0.6 million to earn a 70% interest in the block. If the well is tested and completed, Orca will earn an additional 5% (taking it to 75%) by paying 100% of the testing costs up to €1.3 million and 75% thereafter.

Tags: Orca Exploration Group Inc