ORCA EXPLORATION GROUPORCA EXPLORATION GROUP

Orca Exploration Natural Gas Expansion In Tanzania

Africa Upstream, Cape Town, November 5th 20100Peter R. Clutterbuck, Deputy Chairman

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Forward looking statements and risks

This presentation contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond Orca’s control, including the impact of general economic conditions in the areas in which the company operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with gas operations. Therefore, Orca’s actual results, performance or achievement could differ materially from those expressed, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward looking estimates will - transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that Orca will derive there from. This presentation should be read in conjunction with the company’s Annual Report, audited financial statements and the related notes for the year ended 31 December 2009, and Q2 Report for 2010..

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Orca summary

Tanzania Gas Production gross up to 90 MMscfdExpanding gas production, planning a major long term expansion

Financial Revenue $30 million per year Working capital $49 million, no debt

Target Increasing shareholder value through low-risk organic growth in TanzaniaNow actively progressing New Venture high upside exploration opportunitiesJV offshore Italy in 11 exploration blocks, increasing focus on ItalyContinuing NV focus on Middle East and West Africa

Market Shares issued: 34 millionListing TSXV – ORC.B (Cdn $4.5 per share)Market cap approximately Cdn $150 million Certified 2P NPV-10 valuation US $290 million

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Tanzanian operations: upstream and downstream

Orca operates in Tanzania through its wholly owned subsidiary PanAfrican Energy

Operating in Tanzania for 18 years

Operates a PSA with the parastatal Tanzania Petroleum Development Corporation (TPDC)

Operates the 900 bcf Songo Songo gas field

Owns and operates the downstream gas infrastructure

Focussed on increasing throughput from Songo Songo

Progressing exploration on Songo Songo West

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Why Natural Gas? Pros and cons

Challenges

Transport: the main difference from oil

High capex requiring long term contracts

Pipeline: usually least cost but limits market options; often cross-border problems

CNG (short distances) or LNG (long distances): high capex and opex

Manufactured products: power, industry, GTL, fertiliser, methanol etc: often low netbacks

Slow pace: often too slow for an Independent

Market development, stakeholder negotiations, Government approvals

Low pricing, unless linked to oil in a regional market

Countries often pressure gas developers to supply low value domestic markets

Financial risk due to limited market options, long payback on infrastructure

Advantages

Less competition: most players looking for oil, especially Independents

Very few Independents have full vertically integrated capabilities

Markets are captive once established: longer term stability

Gas can be economic in low quality reservoirs, and has “Unconventional” potential

Gas is cleaner and fuel of choice for green issues: low emissions, low carbon

Gas can usually undercut prices of alternative fuels: petroleum products, renewables, or coal

Gas is often preferred for power markets even against non-fossil energy, such as:

Hydro or nuclear: due to lower capex, less environmental footprint, faster development

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30 years from discovery to production

1974SS1 discovery

EXP. APPRAISAL PRE-PROJECT PROJECT PRODUCTIONSTALLED AWAITING GAS MARKETS

First gas in 2004

1980 1990 2000

SS3, 4SS5 – SS9 Production testing

Songo SongoProject

Financial closein 2001

SS10

Construction

SS-10

SS-10

Seismic

Orca affiliate starts work

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Songo Songo gas chain

Industrial

PowerSongo Songo

FieldWells

Orca + TPDC Songas Songas

Gas processing

plant

Pipeline from Songo Songo

to Dar

Dar distribution

system

Orca Songas Orca

Infrastructure ownership Orca + TPDC

Operatorship

Reservesownership

and markets

Protected Gas

Additional

Gas

Power customersIndustrial Customers

Songas ProjectUbungo Power station

Orca + TPDC

Songas

Songas: owned mainly by Globeleq, financed by World Bank

TPDC: Tanzania Petroleum Development Corporation, the Tanzania national oil company, in partnership with Orca

Tanesco: the Tanzania parastatal electric power company

Orca + TPDCSongas

Orca has exclusive right to produce and market all “Additional Gas” in excess of Protected Gas

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Operations at Songo Songo Island (SSI)

SS-5 SS-9 SS-10 SS-4

SS-3

Songas facilities operated by Orca

Songas facilities

SS-7

SS-9 operations

SSI operations

Wells operated by Orca

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SSI Facilities layout

CondensateTank

JT Valves

Heat Exchangers

Barge to Dar markets

Gas to Dar

Cold separator

Cold separator

ProductionSeparator

CondensateTank

SS-10

SS-9

SS-5

SS-7

SS-4

SS-3

TestSeparator

1600 psi -25ºC

Capacity: Current 90 MMscfdPlanned re-rating to 110 MMscfdLong term expansion to 200 MMscfd with 2 more trains + compression

DPC trains

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Production in 2009-2010: built from 60 to 90 MMscfd

0

10

20

30

40

50

60

70

80

90

100

mmcfd

Songas Wazo PG CAG Ind Wartsila Tegeta Wazo AG Processing Plant Limit

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Capacities and markets

Wells SSI Facilities Pipeline Gas Markets at 100% LoadSS-3

SS-4

SS-5

SS-7

SS-9

2 Trains

Existing

Capacity

Existing

nameplate

capacity

Protected Gas

Maximum 45 MMscfd

Ubungo UGT-6 42 MWIndustrial and CNG

Jacobsen 100 MW GTs in 2011

Tegeta 45 MW

Tanesco Ubungo 100 MW

MM

cfd

0

50

100

150

200SS-10

Twin onshore pipeline

East Coast Transmission

2014

Kinyerezi 240 MW

Combined cycle 2013-4

Wazo Hill Kiln 4

Re-rating

Long Term Expansion

Songas

2013 Compression

Songas

SS-West 1

2011Interim

Production Facilities for

SSW

Twin offshore pipeline

East Coast Transmission

2015

IPC 112 MW in 2010-11 2011

IPTL 100 MW in 2013-14

New 200 MW plant

2015

Industrial and CNG growth

SSW discovery would commit twin offshore pipeline

SSW potentially 100 MMscfd

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Certified Reserves increase since startup

Bcf

Reserves increase due to:• Sustained excellent reservoir performance• New seismic and interpretation• New well data• Declining protected volumes

Life of Field, Audited reserves (BCF)

-

200

400

600

800

1,000

1,200

2004 2005 2006 2007 2008 end 2009

BCF

PossibleProbableProved, in excess of PGProtected Gas

Orca A

dditional Gas

Reserves increase due to:• Sustained excellent reservoir performance• New seismic and interpretation• New well data• Protected volumes declined to 195 Bcf

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Main Field and Songo Songo West

Potential expansion development scenario

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Long term gas supply to power stations

Tanesco Wärtsilä Ubungo 100 MW

Tanesco WTanesco Wäärtsilrtsilää 100 MW100 MW

UGT-6 GE LM 6000 42 MWSongas Ubungo Complex Songas Ubungo Complex 190 MW (PG and AG)190 MW (PG and AG)

Tanesco WTanesco Wäärtsilrtsilää Tegeta 45 MWTegeta 45 MW

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Growing Gas Markets

35 industrial customers connected: textiles, cement, beverages, glass and others; 3 power stations on line

Orca has financed and built over 50 km of distribution Ringmain and 4 Pressure Reduction Stations

Orca is supplying the expansion at the cement plant at Wazo Hill (2-6 MMscfd)

Orca has constructed a CNG facility for vehicles, and the first of several CNG systems for transporting CNG by truck-trailer to commercial hubs

Dar region distribution

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Longer range gas market potential

Tanzania power demand growth

100 MW per year

Transporting gas by CNG

Morogoro, Tanga and Industrial centres

Zanzibar

EastCoast Transmission trunklines

Initially twins from Songo Songo to Dar

Extensions to Mtwara and Tanga

Potential export markets

Methanol

CNG

Gas-to-Liquids

LNG (potential from new offshore discoveries)

Fertiliser and Urea

Cement

Some markets would be shared with future potential gas developers, especially from offshore discoveries

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Orca community and social programmes

Operated by Orca / PanAfrican since 2004

Programmes have included

Water Supply

Electric Power

Schooling

Medical

Orca and affiliates are now expanding into larger nationwide Social Development Programmes

Including a JV with Acumen Fund in E.Africa

CLASSROOMS

BeforeNow

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Acknowledgements

Orca acknowledges the dedication and cooperation of our partners:

Tanzania Ministry of Energy and Minerals (MEM)

Tanzania Petroleum Development Corporation (TPDC)

Tanzania Electricity Supply Company (TANESCO)

Tanzania Energy, Water and Utilities Regulatory Authority (EWURA)

Songas Ltd / Globeleq Ltd

Contact: Peter Clutterbuck, Deputy Chairmanpclutterbuck@orcaexploration.comwww.orcaexploration.com

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