Orca Exploration Group Inc. has entered into a loan agreement with International Finance Corporation (IFC), a member of the World Bank Group, for a $60 million investment (the Loan) in the Company's operating subsidiary, PanAfrican Energy Tanzania Limited (PAET).

Proceeds of the Loan will be used to fund part of an estimated $120 million first phase of a Songo Songo Main Field development program (the Off-Shore Program) currently being undertaken using the Paragon M826 drilling rig (commenced in September 2015).

The Off-Shore Program is designed to (i) put safe existing suspended and operating production wells; (ii) restore and increase the current productive capacity of the Songo Songo Main Field to ensure the continued delivery of Protected and Additional gas into the existing Songas infrastructure; and (iii) provide additional operational redundancy and deliverability for future additional gas sales, by way of the workover and recompletion, abandonment or sidetrack drilling of three existing offshore wells, and/or the drilling of additional production gas wells at locations to be determined in the region of the existing offshore wells depending on the outcome of the workovers.

Tags: Orca Exploration Group Inc