orca, page-12

Orca, operator of the Songo Songo field, has announced a capital raising over night.

Interesting timing considering on the surface the funds won't be needed until the December quarter at the earliest.

Presumably this is a precursor to further news from them or authorities in Tanzania.


Orca Exploration announces its intention to raise approximately Cdn$19.2 million through a rights issue

"Orca is now ready to move to the next stage of growth," said David Lyons, Orcas Chairman and CEO. "We have expanded our exploration prospects to include new low risk, high potential drilling opportunities. Over the next eighteen months, Orca is committed to the drilling of two new high impact wells in proven hydrocarbon basins one in the Elsa field offshore Italy and the other offshore Tanzania. In addition, we are awaiting ratification of a Production Sharing Contract that we signed earlier this year in another jurisdiction. The capital raised by this rights issue, along with cash flow from our expanding Tanzanian operations, will be productively employed to add value through these excellent prospects."

The funds will be primarily used to drill the Elsa-2 appraisal well in Italy in Q4 2010 and for the drilling of the Songo Songo West exploration prospect in Tanzania in the latter half of 2011. The funds will also strengthen the Companys ability to take advantage of additional exploration and development opportunities.