In Summary
Tortola, British Virgin Islands. Orca
Exploration Group Inc. (Orca or the company), the parent company of
PanAfrican Energy Tanzania Limited, announced yesterday that it is
proceeding with the first phase of the Songo Songo development programme
following the World Bank board approval of the International Finance
Corporation (IFC) financing.
IFC has received approval by the board of the
World Bank for an investment by IFC of up to US$60 million in PanAfrican
Energy Tanzania Limited. The investment is currently contemplated as a
subordinated, income participating loan with flexible repayment terms
and a maximum tenor of approximately 10 years.
Completion of the IFC financing is subject to
final agreement of specific terms and the negotiation and signing of
definitive documentation. Initial drawdown of the facility will be
subject to a number of terms and conditions, including satisfaction by
IFC of the sustained payment performance of the Tanzania state utility,
Tanesco, in respect of ongoing gas deliveries by the company.
Subsequent to the approval of the IFC financing,
the company entered into a drilling contract with Paragon Offshore plc
for the use of its M826 Mobile Drilling Workover Rig, as well as the
provision of associated services, in order to execute the offshore phase
of the development programme for the Songo Songo gas field.
The Paragon M826 Mobile Drilling Workover Rig was
selected to operate in the somewhat unique shallow water operating
environment around Songo Songo Island.
The company still needs to obtain certain
regulatory and contractual approvals related to certain aspects of the
development programme.
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