TORTOLA, British Virgin Islands – June 22, 2020: Orca Exploration Group Inc. (“Orca” or the “Company”) (TSX-V: ORC.A, ORC.B) today announced that its Board of Directors has declared a quarterly cash dividend of $0.06 (Cdn) per Class A Common Voting Share of the Company and $0.06 (Cdn) per Class B Subordinate Voting Share of the Company. The dividend will be payable on July 15, 2020 to holders of Class A Common Voting Shares and Class B Subordinate Voting Shares of record on June 30, 2020.
The world markets continue to be extremely volatile under the influence of the COVID-19 pandemic and energy companies have furthermore been significantly impacted by low oil and gas prices. As a consequence, several energy companies have suspended dividend payments and launched capital conservation programmes. At Orca we also are taking appropriate measures to remain resilient to current adverse market conditions, but remain committed to our strategy we recently published and which depicts our three strategic investment themes: a) safeguarding shareholder returns, b) investing in upstream and midstream capacity in our Tanzania operations and c) investing in additional gas growth opportunities as we see fit.
This dividend is approved in recognition of the ongoing shareholder support for the Company and is based on the positive year to date results and forecast free cash flows for the balance of 2020. The ability of the Company to pay future dividends will be reviewed on a quarterly basis taking into consideration actual and forecast cash flows and the macroeconomic outlook at that point in time.
About Orca Exploration Group Inc.
Orca is an international public company engaged in natural gas exploration, development and supply in Tanzania through its subsidiary PanAfrican Energy Tanzania Limited. Orca trades on the TSX Venture Exchange under the trading symbols ORC.A and ORC.B.
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Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Information
Certain information regarding Orca set forth in this news release, including but not limited to: Orca’s intention and ability to pay subsequent dividends and the Company’s position and strategy in relation to market uncertainty constitutes “forward-looking information” within the meaning of applicable Canadian securities laws. The words “may”, “will”, “would”, “should”, “could”, “expects”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “predicts”, “likely” or “potential” or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking information. Forward-looking information, by its very nature, involves inherent risks and uncertainties and is based on several assumptions, both general and specific. Orca cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although believed reasonable at the time they were made, subject to greater uncertainty. Such forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties and other factors which may cause the actual results or performance of Orca to be materially different from the outlook or any future results or performance implied by such information. These include, but are not limited to, reduced global economic activity as a result of the COVID-19 pandemic, including lower demand for natural gas and reduction in the price of natural gas; the potential impact of the COVID-19 pandemic on the health of the Company’s employees, contractors, suppliers, customers and other partners and the risk that the Company and/or such persons are or may be restricted or prevented (as a result of quarantines, closures or otherwise) from conducting business activities for undetermined periods of time; and the impact of actions taken by Governments to reduce the spread of COVID-19, including declaring states of emergency, imposing quarantines, border closures, temporary business closures for companies and industries deemed non-essential, significant travel restrictions and mandated social distancing, and the effect on the Company’s operations, access to customers and suppliers, availability of employees and other resources.
The forward-looking information contained in this new release is provided as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable Canadian securities laws.