Some research on Orca following their recent capital raising...

Some research on Orca following their recent capital raising courtesy of stockopedia.co.uk

http://www.orcaexploration.com/investor_analyst_research/2010-15-October-GMP.pdf

The analyst seems to contradict themselves.

Talking about drill Songo Songo West (gas field located between the Songo Songo field and our prospect West Songo Songo) they state:

In addition, the reserves in the main Songo Songo field main are sufficient to meet current gas demand in Tanzania and significant additional processing facilities would be required to commercialize SSW. We believe the largest risk for SSW will be gas demand growing sufficiently for the gas to be produced in the life of the PSC (until
2026).

Yet then they have this about Orca's proposed infrastructure spending:

Part of the funds received from the rights issue will be used to address bottle-neck issues and to accelerate infrastructure development in Tanzania.

In July 2010, the company announced the creation of EastCoast Transmission and Marketing as the new infrastructure division of the company. EastCoast Transmission is initially focused on expanding the onshore natural gas pipeline system transporting Songo Songo gas to Dar es Salaam in Tanzania.

Currently the installed infrastructure configuration that transports the Songo Songo gas to Dar es Salaam is at capacity at 90 mmcf/d. Orca is planning to expand the existing system and increase the throughput to a peak of 140 mmcf/d by Jan/13. Pipeline expansion is intended to address capacity constraints.

Interestingly they are estimating the cost of drilling Songo Songo West via a jackup drill rig at $US5m (100%). So presumably KEY's share of the cost (20%) of drilling Nyuni #2 via a land rig would be a fair bit lower.