10:41 AM EST, 12/19/2024 (MT Newswires) -- Orca Energy Group (ORC-B.V, ORC-A.V) overnight Wednesday said it and affiliates had ceased well intervention operations and begun demobilization of the barge and jackup from the SS-7 site, on Songo Songo Island, Tanzania.

The company had attempted to produce gas from the southern compartment of the gas field. Following successful water shut off and reperforation of the Neocomian sands, it said "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 ceased well intervention operations. The company noted the total expected project cost had increased to US$27 million from US$22 million. Orca had previously anticipated SS-7 returning to production last month.

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

Orca's B listed stock was last seen down $0.01, to $2.94, on the TSX Venture Exchange.

Price: 2.94, Change: -0.01, Percent Change: -0.34