I get the impression from Aminex's description of Kiliwani North being a gas hub and from Orca's exploration talk that the, hopefully, soon to be approved gas plant expansion is just the start for expansion.
Orca's website has this to say about exploration of their Songo Songo West lead, which lies between their Songo Songo gas field and our West Songo Songo block.
Songo Songo West represents a major potential source of reserves upside in the Songo Songo area. Orca Exploration is planning to drill an initial exploration well towards the south of the SSW structure. If it is successful and can flow at commercial rates, it is likely to be tied back to the manifold in front of the existing processing plant and flowed for a period to prove up the long term deliverability of gas. Following this confirmation, it is likely that an appraisal well will be drilled into the northern extent of the mapped structure to get a better understanding of the aerial extent of the reservoir and the recoverable reserves. The final field development decision would then be taken, but is likely to involve a significant expansion of the existing facilities.
Songo Songo West is located in water depths of approximately 18 ? 35m and will require a jack-up drilling rig to explore the prospect. Rig availability is a key focus in well planning, and Orca is actively engaged with other operators in East Africa who have a requirement for a jack-up rig to drill in shallow water along a similar timeframe.
Orca are due to hold their AGM on June 23rd, I am sure they would love to announce approval of the plant expansion by then.
I will be less than impressed having held, and increased my holdings in, KEY since April 2007 for them to go and flog off the Tanzanian assets just when they are on the verge of some action.
KEY Price at posting:
7.5¢ Sentiment: Hold Disclosure: Held