5 February 2012, Dar es Salaam PanAfricanEnergy Tanzania Ltd. (PAT) has announced the start of drilling of a new gasproduction well (SS-11) on Songo Songo Island, marking a major milestone inits US$130m investment programme intended to eventually double gas productioncapacity from the Songo Songo gas field. The Sakson PR5 rig is the most powerful land rig to currently operate inTanzania and will be drilling a new well as part of PATs push to increase gasproduction capacity from 113 million standard cubic feet per day to well over 200million standard cubic feet per day in the coming months. With Tanzanias powerneeds growing rapidly in line with the countrys economic development, PATremains committed to playing its part to support the Governments drive forincreased energy supply and security, and to meeting the needs of the Tanzanianpeople. To start the year with the spudding of the Sakson PR5 rig is excitingand reflects the busy year that we have ahead of us. Were looking forward tocontinuing to work with our partners to help meet Tanzanias energy needs as weenter our eleventh year here in Tanzania, said PAT General Manager, AndrewBrown. PAT is also planning the drillingof a US$35mn offshore well as part of the companys US$130 million investmentprogramme. The powerful, 2,000hp Sakson PR-5 rig will drill to a depth ofapproximately 2,400 metres through the coming ten weeks. Well SS-11 will be the seventh well in theSongo Songo Field, which extends both onshore under Songo Songo Island andoffshore to the west of the island in the Kilwa District, 185km south of Dar esSalaam. PAT has played a key role with other stakeholders in thedevelopment of Tanzanias gas industry since 2001. The companys Production Sharing Agreement isin partnership with Tanzania Petroleum Development Corporation (TPDC) and PATis the operator of the Songo Songo gas processing plant under contract toSongas. PAT supplies gas primarily forpower generation to the Tanzania Electric Supply Company (TANESCO) and Songas,as well as 38 industrial customers. The use of natural gas particularly forpower generation has made a significant contribution to Tanzanias economy,which is widely recognized to have saved over US$2 billion in other fuel coststo the country since commercial operations began in 2004. ENDS AboutPanAfrican Energy Tanzania PanAfrican EnergyTanzania (PAT) has for the past 10 years been the lead private sector investorin Tanzanias gas industry, producing up to 102 million standard cubic feet ofgas per day. Over 85% of this gas is used for power generation in Tanzania.A wholly ownedsubsidiary of Orca Exploration Group Inc., PanAfrican Energy Tanzania operatesa gas processing facility on Songo Songo Island on behalf of Songas Limited(Songas) on a no loss, no gain basis. The plant supplies natural gas through a25 km 12" offshore pipeline and a 207 km 16" onshore pipeline to thepower sector and industrial markets in the Dar es Salaam area. Songo Songo isTanzania's first major natural gas development. AboutSongo Songo West (SSW) Songo SongoWest lies approximately 2.5 kilometres west of the main field and is mapped onseismic as having closure on an elongate north-south oriented tilted faultblock trap. As with the Songo Songo main field, two reservoirs are envisaged tobe present within the SSW prospect the Neocomian and the Cenomanian, althoughthe primary exploration potential lies within the Neocomian interval. SSW liesentirely within the Companys Discovery Blocks.