Orca Energy Group announces an operational update.

SS-7 Update

Further to previous announcements, the well intervention operations on SS-7 have now concluded. The work program, following a complex mobilization to Songo Songo Island, sought to restore the mechanical integrity of the well to shutoff water production in order to restart production from the southern compartment of the gas field. Following successful water shut off and reperforation of the Neocomian sands, limited and unsustained gas flows were observed. The Company, in line with its contingency plans, set a cement plug above the Neocomian interval and perforated the shallower Cenomanian sands.

Having completed all possible downhole work, and after an unsuccessful attempt to produce gas from the Cenomanian sands, the Company has ceased well intervention operations and commenced demobilization of the barge and jackup from the SS-7 site. The total expected project cost has increased to $27 million from $22 million, primarily as a result of the significant attempts required to shut off water and reproduce the well.

Following demobilization, a comprehensive post project analysis will be carried out to evaluate the intervention results, which have not met production expectations.

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