TORTOLA, British Virgin Islands. Orca Exploration Group Inc (“Orca” or the “Company“) announces that it has completed its previously announced rights offering (the “Rights Offering“). At closing, Orca issued 4,955,687 Class B Subordinated Voting shares (“Class B Shares“) of Orca at a price of $3.90 per Class B Share for gross proceeds of $19,327,179. The Class B Shares were issued to persons who exercised rights issued under the Rights Offering, as described in the rights offering circular of the Company dated August 19, 2010, and to Haywood Securities Inc. pursuant to a stand-by commitment.
The Company intends to use the proceeds of the Rights Offering primarily to drill the Songo Songo West exploration prospect in Tanzania in the latter half of 2011 as well as to drill the Elsa-2 appraisal well in Italy once the legislative issues concerning offshore drilling are resolved. In addition, some of the funds will be allocated to the development of energy infrastructure in East Africa through the newly formed division of Orca, EastCoast Transmission and Marketing.
Haywood Securities acted as Soliciting Agent and Haywood Securities and GMP Securities acted as Joint Advisers to the Company in relation to the Rights Offering.
“We are delighted with the success of the Rights Offering that has given the Company financial strength to embark on the next phase of its ongoing and renewed growth strategy,” said W. David Lyons, Orca’s Chairman and CEO. “The Company has working capital of approximately US$47 million and these funds will be utilised for the drilling of two low risk, high impact wells and to accelerate the commercialisation of the Company’s existing gas reserves in Tanzania through infrastructure development.” W. David Lyons exercised all of the rights allocated to him pursuant to the Rights Offering.
Orca Exploration is an international public company engaged in natural gas exploration, development and supply in Tanzania and oil appraisal in Italy. The Company is actively seeking to acquire an additional exploration opportunity in a proven hydrocarbon basin. Orca Exploration trades on the TSXV under the trading symbols ORC.B and ORC.A.
For further information please contact:
| W. David Lyons, Chairman and CEO +44-7717-100-200 wdlyons@orcaenergygroup.com | Nigel A. Friend, CFO +255 (0)22 2138737 wdlyons@orcaenergygroup.com |
Note Regarding Forward Looking Statements
This document contains forward-looking statements. More particularly, this document contains statements concerning the use of proceeds from the Rights Offering.
Although Orca believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Orca can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks that required regulatory and third party approvals and consents are not obtained on terms satisfactory to the parties or the board of directors of Orca determines that it would be in the best interests of Orca to deploy the proceeds for some other purpose.
The forward-looking statements contained in this press release are made as of the date hereof and Orca undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Not for dissemination or distribution in the United States or to United States news wire services.