Orca Energy Group Inc. Publication of Sustainability Report

TORTOLA, BRITISH VIRGIN ISLANDS – August 31, 2022: Orca Energy Group Inc. (“Orca” or the “Company” and includes its subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) today announces that it has published its first sustainability report (the “Sustainability Report“).

The Sustainability Report reflects on the Company’s progress on delivering its sustainability principles and framework, laying the groundwork for a number of future projects. The Company’s goal is to create long-term sustainable and accretive value for all of our stakeholders, whilst contributing to Tanzania’s transition away from more carbon intensive sources of energy in the transition to a lower carbon future.

Jay Lyons, Chief Executive Officer, commented:

“This is our maiden Sustainability Report and we are proud of the progress we made in 2021, and the range and impact that our ESG focused initiatives have had, which are continuing with the same momentum in 2022. As a company active in the energy space, we are intrinsically linked with Tanzania’s energy needs, with our primary objective being to provide reliable natural gas to support the country’s power and industrial sectors, whilst looking at ways to minimize the environmental impact of our operations and maximize our positive contribution to our stakeholders.”

The full report can be accessed here.

For further information please contact:

Jay Lyons
Chief Executive Officer
jlyons@orcaenergygroup.com

+44 (0)20 8434 2754

Lisa Mitchell
Chief Financial Officer
lmitchell@orcaenergygroup.com

+44 (0)20 8434 2754

For media enquiries please contact:

Mark Antelme
Jimmy Lea
+44 (0)20 8434 2754
orca@celicourt.uk

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

This press release contains forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact included in this press release, which address activities, events or developments that Orca expects or anticipates to occur in the future, are forward-looking statements. Forward-looking statements often contain terms such as may, will, should, anticipate, expect, continue, estimate, believe, project, forecast, plan, intend, target, outlook, focus, could and similar words suggesting future outcomes or statements regarding an outlook. More particularly, this press release contains, without limitation, forward-looking statements pertaining to the following: the framework the Sustainability Report provides for future projects; the Company’s goal of creating sustainable value for all of its stakeholders while contributing to Tanzania’s transition away from carbon intensive sources of energy; Tanzania’s transition to a lower carbon future; the Company’s ESG focused initiatives; and Orca’s objective of providing reliable natural gas to support Tanzania’s power and industrial sectors while minimizing its environmental impact.

These forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control, and many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by the Company, including, but not limited to: the Company is unable to create sustainable value for stakeholders; the risk that Tanzania does not transition away from more carbon intensive sources of energy; the Company’s ESG focussed initiatives are not as successful as anticipated; the Company is unable to minimize its environmental impact; the risk that recently enacted legislation will create additional costs and time connected with the Company’s business in Tanzania; risks regarding the uncertainty around evolution of Tanzanian legislation; the impact of general economic conditions in the areas in which the Company operates; changes in laws and regulations including the adoption of new environmental laws and regulations, impact of local content regulations and variances in how they are interpreted and enforced; the lack of availability of qualified personnel or management; competition for, among other things, capital, oil and gas field services and skilled personnel; failure to obtain required equipment for field development; delays in development plans; and obtaining required approvals of regulatory authorities. In addition, there are risks and uncertainties associated with oil and gas operations, therefore the Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by these forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive.

Such forward-looking statements are based on certain assumptions made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes are appropriate in the circumstances, including, but not limited to: Tanzania is able to transition away from more carbon intensive sources of energy; the Company is able to minimize its environmental impact; the Company’s ESG initiatives continue to be successful; the effects of regulation by governmental agencies; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated; the effect of new environmental and climate-change related regulations will not negatively impact the Company; the Company is able to maintain strong commercial relationships with the Government of Tanzania and other state and parastatal organizations; and other matters.

The forward-looking statements contained in this news release are made as of the date hereof and the Company 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.

Orca Energy Group Inc. Announces Completion Of Q2 2022 Interim Filings

TORTOLA, BRITISH VIRGIN ISLANDS – August 16, 2022: Orca Energy Group Inc. (“Orca” or the “Company” and includes its subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) today announces that it has filed its condensed consolidated interim financial statements and management’s discussion and analysis for the three and six month periods ended June 30, 2022 (“Q2 2022“) with the Canadian securities regulatory authorities. All amounts are in United States dollars (“$”) unless otherwise stated.

Jay Lyons, Chief Executive Officer, commented:

“We continue to deliver operationally, which can be seen by the robust financial performance Orca achieved during the quarter. We were able to increase our revenue significantly year-on-year, leaving the business in a strong financial position and able to capitalize on the investment opportunities we have identified for the Songo Songo gas field. We have a number of important workstreams planned for the second half of 2022, including the 3D seismic acquisition planned for the second half of 2022, which is expected to provide greater clarity on the contingent and prospective resource potential in the first half of 2023.”

Highlights

  • Revenue increased by 39% for Q2 2022 and by 43% for the six months ended June 30, 2022 compared to the same prior year periods. The increases were primarily a result of increased sales to customers in the power sector. Gas deliveries increased by 71% for Q2 2022 and by 46% for the six months ended June 30, 2022 compared to the same prior year periods. The increase in gross sales volume was primarily due to the increase in gas deliveries to customers in the power sector as a result of increased deliveries to the Tanzanian Petroleum Development Corporation (“TPDC”) and the Tanzanian Electric Supply Company Limited (“TANESCO”). It is expected that average gross gas sales volumes will be within the Company’s current forecast for 2022 of 80-86 MMcfd.
  • Net income attributable to shareholders increased by 102% for Q2 2022 and by 94% for the six months ended June 30, 2022 compared to the same prior year periods, primarily a result of the increased revenues.
  • Net cash flows from operating activities increased by 179% for Q2 2022 and by 246% for the six months ended June 30, 2022 compared to the same prior year periods. This was primarily a result of the increased revenue and non-cash adjustments.
  • Capital expenditures decreased by 67% for Q2 2022 and increased by 69% for the six months ended June 30, 2022 compared to the same prior year periods. The capital expenditures in Q1 and Q2 2022 primarily related to completion of both the well workover program for the SS-3, SS-4 and SS-10 wells and the compression project. The Company installed feed gas compression on the Songas gas processing facility to allow production volumes through the Songas Infrastructure to be sustained at approximately 102 MMcfd in the near term (2-4 years). In April 2022, the drilling rig was released having completed the planned well workover program. The $31.6 million program included the reactivation of the SS-3 and SS-4 wells along with the installation of corrosion resistant production tubing on all three of the wells. The SS-3 well was placed on production on February 15, 2022 and the SS-10 well was returned to production on April 18, 2022. The SS-4 well is currently unable to flow naturally due to liquid loading, the cause of which is yet to be established. The Company has sourced a coiled tubing nitrogen unit to lift excess liquid from the well bore, potentially allowing the well to flow naturally. The coiled tubing unit is currently undergoing refurbishment in Poland.  A vessel for mobilisation to Tanzania has been booked and the unit is expected to be on location in Songo Songo Island in Q4 2022. The workovers and compression facilities provide the opportunity to initially increase current total field production potential to approximately 155 MMcfd by also producing through the adjacent the National Natural Gas Infrastructure (“NNGI”) facilities on Songo Songo Island. The Company intends to carry out a 3D seismic acquisition program in Q4 2022, budgeted at $21.6 million including associated management, support and QA/QC costs estimated to be approximately $850,000, in order to de-risk both future development drilling and potential exploration drilling of prospective resources. Following technical and commercial evaluation of three seismic acquisition proposals, the Company awarded and signed a contract with African Geophysical Services LLP on July 7, 2022, to acquire approximately 181 square kilometers of 3D marine, transition and land based seismic over the Songo Songo license area. The Company is targeting completion of the program in Q4 2022 to align with the optimum weather window and assure highest quality data acquisition.  The Company also successfully completed smart pigging of the SS-3, SS-4 SS-5, SS-7 and SS-9 flowlines, identifying a number of areas of advancing corrosion or erosion.  Immediate, low cost, repairs of sections of flowline have been conducted and wells returned to operations with minimal impact on overall production. However, the Company is planning a program of full flowline repairs on two flowlines in 2023 in accordance with the Company’s integrity management plan.
  • The Company exited the period in a strong financial position with $44.3 million in working capital (December 31, 2021: $41.8 million), cash and cash equivalents of $82.4 million (December 31, 2021: $73.0 million) and long-term debt of $44.7 million (December 31, 2021: $49.6 million). The decrease in long-term debt was related to reclassification of $5.0 million of long-term debt into current liabilities as it becomes due in April 2023.
  • As at June 30, 2022 the current receivable from TANESCO was $4.3 million (December 31, 2021: $2.0 million). TANESCO’s long-term trade receivable as at June 30, 2022 and December 31, 2021 was $26.5 million with a provision of $26.5 million. Subsequent to June 30, 2022 TANESCO paid the Company $5.6 million and the Company invoiced TANESCO $5.3 million for July 2022 gas deliveries.
  • On May 20, 2022, the Company declared a dividend of CDN$0.10 per share on each of its Class A common shares (“Class A Shares”) and Class B subordinate voting shares (“Class B Shares”) for a total of $1.6 million to the holders of record as of June 30, 2022, which was paid on July 15, 2022.
  • On July 11, 2022 the Company commenced a normal course issuer bid (“2022 NCIB”) to purchase Class B Shares through the facilities of the TSXV and alternative trading systems in Canada. To date, no shares have been purchased by the Company pursuant to the 2022 NCIB.
  • On August 8, 2022, the Company issued a redemption notice to Swala Oil & Gas (Tanzania) plc (“Swala“), requesting that Swala redeem 20% of the outstanding Swala convertible preference shares that were issued to the Company in accordance with the investment agreement dated December 29, 2017, among the Company, the Company’s subsidiary PAE PanAfrican Energy Corporation and Swala’s subsidiary Swala (PAEM) Limited.

Financial and Operating Highlights for the Three and Six Months Ended June 30, 2022

The complete Condensed Consolidated Interim Financial Statements and Notes and Management’s Discussion & Analysis for the three and six months ended June 30, 2022 may be found on the Company’s website at www.orcaenergygroup.com or on the Company’s profile on SEDAR at www.sedar.com.


Orca Energy Group Inc.

Orca Energy Group Inc. is an international public company engaged in natural gas development and supply in Tanzania through its subsidiary, PanAfrican Energy Tanzania Limited. Orca trades on the TSX Venture Exchange under the trading symbols ORC.B and ORC.A.

*The principal asset of Orca is its indirect interest in the Production Sharing Agreement (“PSA”) with TPDC and the Government of Tanzania in the United Republic of Tanzania. This PSA covers the production and marketing of certain conventional natural gas from the Songo Songo licence offshore Tanzania. The PSA defines the gas produced from the Songo Songo gas field as “Protected Gas” and “Additional Gas”. The Protected Gas is owned by TPDC and is sold under a 20-year gas agreement (until July 31, 2024) to Songas and Tanzania Portland Cement PLC. Songas is the owner of the infrastructure that enables the gas to be processed and delivered to Dar es Salaam, which includes a gas processing plant on Songo Songo Island. Additional Gas is all gas that is produced from the Songo Songo gas field in excess of Protected Gas.

For further information please contact:

Jay Lyons 

Chief Executive Officer

+44 (0)20 8434 2754

jlyons@orcaenergygroup.com

 

Lisa Mitchell

Chief Financial Officer

+44 (0)20 8434 2754

 lmitchell@orcaenergygroup.com

For media enquiries please contact:

Mark Antelme

Jimmy Lea

+44 (0)20 8434 2754

orca@celicourt.uk

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.

Abbreviations

Mcf thousand cubic feet
MMcfd million standard cubic feet per day


Non-GAAP Financial Measures and Ratios

In this press release, the Company has disclosed the following non-GAAP financial measures, non-GAAP ratios and supplementary financial measures: capital expenditures, operating netback, operating netback per mcf, working capital, net cash flows from operating activities per share and weighted average Class A and Class B Shares.

These non-GAAP financial measures and ratios disclosed in this press release do not have any standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other issuers. These non-GAAP financial measures and ratios should not, therefore, be considered in isolation or as a substitute for, or superior to, measures and ratios of Company’s financial performance defined or determined in accordance with IFRS.  These non-GAAP financial measures and ratios are calculated on a consistent basis from period to period.


Non-GAAP Financial Measures

Capital expenditures

Capital expenditures is a useful measure as it provides an indication of our investment activities. The most directly comparable financial measure is net cash used in investing activities. A reconciliation to the most directly comparable financial measure is as follows:

Operating netback

Operating netback is calculated as revenue less processing and transportation tariffs, TPDC’s revenue share, and operating and distribution costs. The operating netback summarizes all costs that are associated with bringing the gas from the Songo Songo gas field to the market, it is a measure of profitability. A reconciliation to the most directly comparable financial measure is as follows:

 

Non-GAAP Ratios

Operating netback per mcf

Operating netback per mcf represent the profit margin associated with the production and sale of Additional Gas and is calculated by taking the operating netback and dividing it by the volume of Additional Gas delivered and sold. This is a key measure as it demonstrates the profit generated from each unit of production.

 

Supplementary Financial Measures

Working capital

Working capital is defined as current assets less current liabilities, as reported in the Company’s Consolidated Statements of Financial Position. It is an important measure as it indicates the Company’s ability to meet its financial obligations as they fall due.

Net cash flows from operating activities per share

Net cash flows from operating activities per share is calculated as net cash flows from operating activities divided by the weighted average number of shares, similar to the calculation of earnings per share. Net cash flow from operations is an important measure as it indicates the cash generated from the operations that is available to fund ongoing capital commitments.

Weighted average Class A and Class B Shares

In calculating the weighted average number of shares outstanding during any period the Company takes the opening balance multiplied by the number of days until the balance changes.  It then takes the new balance and multiplies that by the number of days until the next change, or until the period end.  The resulting multiples of shares and days are then aggregated and the total is divided by the total number of days in the period.

 

Forward Looking Information

This press release contains forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact included in this press release, which address activities, events or developments that Orca expects or anticipates to occur in the future, are forward-looking statements. Forward-looking statements often contain terms such as may, will, should, anticipate, expect, continue, estimate, believe, project, forecast, plan, intend, target, outlook, focus, could and similar words suggesting future outcomes or statements regarding an outlook. More particularly, this press release contains, without limitation, forward-looking statements pertaining to the following: the ability for the SS-4 well to flow naturally following the installation of a coiled nitrogen unit; the timing of when the coiled nitrogen unit and other equipment will be on location; the demand for gas and Orca’s average gross sales of conventional natural gas are in line with the Company’s forecasts; the results of discussions with the MoE, TPDC and TANESCO relating to the increase in gas supply; the timing for when new power generation facilities are commissioned; the Company’s expectations regarding supply and demand of natural gas; anticipated production volumes and increased well deliverability as a result of the installation of compression and the completion of the well workover program; current and potential production capacity of the Songo Songo gas field; the Company’s forecast for average gross conventional natural gas sales in 2022; the Company’s expectations regarding timing and cost for the completion of the 3D seismic acquisition program; the availability of suitable weather windows to conduct the 3D seismic acquisition program; the expected results of the 3D seismic acquisition program; and the timing and cost associated with the full flowline repairs required on two wells. Although management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, access to resources and infrastructure, performance or achievement since such expectations are inherently subject to significant business, economic, operational, competitive, political and social uncertainties and contingencies.

These forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control, and many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by the Company, including, but not limited to: failure to receive payments from TANESCO; risks related to the implementation of potential financing solutions to resolve the TANESCO arrears; risk that the well workovers are; risk of a lack of access to Songas processing and transportation facilities; risk that the Company may be unable to complete additional field development to support the Songo Songo production profile through the life of the license; risk that the Company may be unable to develop additional supply or increase production values; risks associated with the Company’s ability to complete sales of Additional Gas; potential negative effect on the Company’s rights under the PSA and other agreements relating to its business in Tanzania as a result of the Petroleum Act, 2015 (the “Act”) and other recently enacted legislation, as well as the risk that such legislation will create additional costs and time connected with the Company’s business in Tanzania; risks regarding the uncertainty around evolution of Tanzanian legislation; the impact of general economic conditions in the areas in which the Company operates; civil unrest; the susceptibility of the areas in which the Company operates to outbreaks of disease; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations, impact of local content regulations and variances in how they are interpreted and enforced; increased competition; the Company’s average gross conventional natural gas sales in 2022 lower than forecasted; the lack of availability of qualified personnel or management; fluctuations in commodity prices, foreign exchange or interest rates; stock market volatility; competition for, among other things, capital, oil and gas field services and skilled personnel; failure to obtain required equipment for field development; delays in development plans; failure to obtain expected results from the drilling or workover of wells; effect of changes to the PSA on the Company as a result of the implementation of new government policies for the oil and gas industry; changes in laws; imprecision in reserve estimates; the production and growth potential of the Company’s assets; obtaining required approvals of regulatory authorities; failure to complete the well workover program on the timelines or at the costs anticipated; risks associated with negotiating with foreign governments; inability to satisfy debt conditions of financing; failure to successfully negotiate agreements; risk that the Company will not be able to fulfil its contractual obligations; reduced global economic activity as a result of COVID-19, including lower demand for natural gas and a reduction in the price of natural gas; the potential impact of COVID-19 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; failure to recommence production from SS-4 following the utilisation of a coiled nitrogen unit to potentially unload liquids from the wellbore, failure to complete the 3D seismic acquisition program on the timeline or at the cost anticipated; the 3D seismic acquisition program does not provide greater clarity on the contingent and prospective resource potential; and not having an appropriate weather window in which to conduct the 3D seismic program. In addition, there are risks and uncertainties associated with oil and gas operations, therefore the Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by these forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive.

Future shareholder returns, including but not limited to the payment of dividends or other distributions to shareholders, if any, and the level thereof is uncertain. Any decision to pay further distributions on the Class A Shares and Class B Shares (including the actual amount, the declaration date, the record date and the payment date in connection therewith) will be subject to the discretion of the Board of Directors of the Company and may depend on a variety of factors, including, without limitation the Company’s business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and compliance with applicable laws. There can be no assurance that the Company will pay any distributions in the future.

Such forward-looking statements are based on certain assumptions made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes are appropriate in the circumstances, including, but not limited to, the ability of the Company to complete additional developments and increase its production capacity; the impact of COVID-19 on the demand for and price of natural gas, volatility in financial markets, disruptions to global supply chains and the Company’s business, operations, access to customers and suppliers, availability of employees to carry out day-to-day operations, and other resources; that the Company will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that the Company will successfully negotiate agreements; receipt of required regulatory approvals; the ability of the Company to increase production as required to meet demand; infrastructure capacity; commodity prices will not deteriorate significantly; the ability of the Company to obtain equipment and services in a timely manner to carry out exploration, development and exploitation activities; future capital expenditures; availability of skilled labor; timing and amount of capital expenditures; uninterrupted access to infrastructure; the impact of increasing competition; conditions in general economic and financial markets; effects of regulation by governmental agencies; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; the effect of new environmental and climate-change related regulations will not negatively impact the Company; the Company is able to maintain strong commercial relationships with the Government of Tanzania and other state and parastatal organizations; the current and future administration in Tanzania continues to honor the terms of the PSA and the Company’s other principal agreements; the new power generation facilities are commissioned on the expected timelines; the Company’s average gross conventional natural gas sales in 2022 are in line with forecasts; the actual costs to complete the Company’s 3D seismic acquisition program are in line with estimates; the 3D seismic acquisition program provides greater clarity on the contingent and prospective resource potential in the first half of 2023; the SS-4 well will be able to flow naturally following the utilization of the coiled nitrogen unit;  and other matters.

The forward-looking statements contained in this press release are made as of the date hereof and the Company 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.

Orca Announces Appointment of New Chief Operating Officer

TORTOLA, BRITISH VIRGIN ISLANDS – August 10, 2022: Orca Energy Group Inc. (“Orca” or “the Company” and includes its subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) is pleased to announce that Ewen Denning will join the Company as Chief Operating Officer (“COO”), effective September 1, 2022.

Ewen brings over thirty-five years of international energy industry experience to Orca Energy Group. During his career has he has worked for BP, BG Group and Glencore and had assignments across five continents. Since 2011 he has worked extensively in Africa on a variety of projects in Cameroon, Chad, Equatorial Guinea, Nigeria and Tunisia; most recently on the Logbaba integrated gas project in Cameroon. He has wide technical and commercial experience having held senior positions managing operational assets in established areas and commercialising new ventures in frontier areas.

Mr Denning holds a B.Eng. in Mechanical Engineering from Sheffield University and an MBA from Heriot-Watt University. He is a Chartered Engineer and Fellow of the Institution of Mechanical Engineers and also a Member of the Society of Petroleum Engineers.

Jay Lyons, Chief Executive Officer, commented:  “We are excited to welcome Ewen to Orca, as he brings considerable operational experience with energy projects in Africa. This is an important moment in the development of the Songo Songo field, as the Company has undertaken a number of proactive investment opportunities in pursuit of unlocking further value from the licence, and we believe that Ewen is the right person to help us take things forward. We look forward to working closely with him when he joins the Company in September and we anticipate demonstrating further operational progress over the rest of the year. ”

Orca Energy Group Inc.

Orca Energy Group Inc. 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.B and ORC.A.

For further information please contact:

Jay Lyons
Chief Executive Officer
jlyons@orcaenergygroup.com

+44 (0)20 8434 2754

Lisa Mitchell
Chief Financial Officer
lmitchell@orcaenergygroup.com

+44 (0)20 8434 2754

For media enquiries please contact:

Mark Antelme
Jimmy Lea
+44 (0)20 8434 2754
orca@celicourt.uk

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.

Orca Energy Group Inc. Notes Announcement by Swala Oil and Gas (Tanzania) PLC

TSX-V: ORC.A, ORC.B

TORTOLA, British Virgin Islands, August 9, 2022: Orca Energy Group Inc. (“Orca” or the “Corporation“) notes the announcement by Swala Oil and Gas (Tanzania) PLC (“Swala”) titled “IMPACT OF ACCOUNTING FAILURES IN PAEM ON SWALA ACCOUNTS”.

As Swala had been specifically and repeatedly advised prior to its issuance,this press release appears to contain inaccurate and misleading statements in relation to PanAfrican Energy Tanzania Limited (“PAET”) and PAE Pan African Energy Corporation.

Orca is working closely with its legal and other advisors and intends to take any steps necessary or appropriate to address the situation, including pursuing any legal remedies available to the Corporation.

Orca does not intend on providing any further communication to shareholders on this matter unless the board of directors of the Corporation determines it is advisable to do so or such disclosure is required in order for Orca to comply with applicable law.

Orca Energy Group Inc.

Orca is an international public company engaged in natural gas exploration, development and supply in Tanzania through its subsidiary PAET.  Orca trades on the TSX Venture Exchange under the trading symbols ORC.A and ORC.B.

For further information please contact:

Jay Lyons
Chief Executive Officer
jlyons@orcaenergygroup.com

+44 (0)20 8434 2754

Lisa Mitchell
Chief Financial Officer
lmitchell@orcaenergygroup.com

+44 (0)20 8434 2754

For media enquiries please contact:

Mark Antelme
Jimmy Lea
+44 (0)20 8434 2754
orca@celicourt.uk

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

This press release contains forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact included in this press release, which address activities, events or developments that Orca expects or anticipates to occur in the future, are forward-looking statements. Forward-looking statements often contain terms such as may, will, should, anticipate, expect, continue, estimate, believe, project, forecast, plan, intend, target, outlook, focus, could and similar words suggesting future outcomes or statements regarding an outlook. More particularly, this press release contains, without limitation, forward-looking statements pertaining to the following: the steps that Orca intends to take in response to Swala’s announcement and the legal remedies available to Orca.

These forward-looking statements involve substantial known and unknown risks, uncertainties, certain of which are beyond the Corporation’s control, and many factors could cause the Corporation’s actual results to differ materially from those expressed or implied in any forward-looking statements made by the Corporation, including, but not limited to: there being limited or no legal remedies available to Orca.

Such forward-looking statements are based on certain assumptions made by the Corporation in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors the Corporation believes are appropriate in the circumstances, including, but not limited to: Orca having various legal remedies available to it.

The forward-looking statements contained in this press release are made as of the date hereof and the Corporation 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.