Operations Update & Guidance for 2022

TORTOLA, BRITISH VIRGIN ISLANDS – December 2, 2021: Orca Energy Group Inc. (“Orca” or the “Company” and includes its subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) today announces an operations update and guidance for 2022.  All amounts are in United States dollars (“$”) unless otherwise stated.

Jay Lyons, Chief Executive Officer, commented:

“Despite challenges associated with global supply chains and other COVID-19 related issues, we are very pleased to announce good progress on our 2021 work programs, a significant $50 million capital program and further guidance for 2022.   These plans are consistent with Orca’s 20 year track record of proactive investment and field development to ensure sustainable gas supply to the United Republic of Tanzania. Subject to Government approvals, the proposed plan will enable the Company to not only maintain, but potentially increase its production in the near to medium term to align with the country’s energy needs and industrialization objectives while maintaining returns to our shareholders.”   

Operations Update

Well Workover Program:  Following acceptance testing, the Exalo S.A drilling rig is onsite Songo Songo (“SS“) Island and remediation work has commenced on SS-3, the first of a planned three well onshore workover program.   The $20.5 million program includes the reactivation/recompletion of the SS-3 and SS-4 wells to access incremental gas reserves in the SS east pool and provide additional gas deliverability to the SS gas plant. Together with the SS-3 and SS-4 wells, the SS-10 well, which remains in production, will be worked over and completed with a new corrosion resistant chrome alloy production tubing string in accordance with the Company’s ongoing corrosion monitoring and infrastructure integrity management system.  With the completion of the workover program in Q1 2022, all the producing gas wells in the SS gas field will be  equipped with the corrosion resistant tubing strings to ensure continued reliable gas production to the Tanzanian power sector and industrial customers in the Dar es Saleem region. 

Inlet Compression Project: Initiated in 2019, the $41.5 million inlet compression project is nearing completion, with a potential startup ahead of the contractual April 2022 target, following tie in to the SS gas plant and commissioning planned for early 2022. The inlet compression will allow production volumes to be sustained through the Songas Limited (“Songas”) infrastructure at approximately 102 million standard cubic feet per day (“MMcfd”) in the near term (3-5 years).

Subject to demand volumes, natural reservoir pressure declines and the associated well performance, the $63 million invested in workovers and inlet compression facilities at the Songas infrastructure when combined with gas supplied to the National Natural Gas Infrastructure (“NNGI”) will provide the opportunity to initially increase total production capacity from the SS gas field in early 2022. 

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Orca Announces Quarterly Dividend

TORTOLA, British Virgin Islands – November 19, 2021:  Orca Energy 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 $0.10 (Cdn) per Class A Common Voting Share (“Class A Shares“) of the Company and $0.10 (Cdn) per Class B Subordinate Voting Share (“Class B Shares“) of the Company. The dividend will be payable on January 14, 2022 to holders of Class A Shares and Class B Shares of record on December 31, 2021.

About Orca Energy 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.

For further information please contact:

Jay Lyons
Chief Executive Officer
+44-7798-502316           
jlyons@orcaenergygroup.com

Lisa Mitchell
Chief Financial Officer
+44-7808-639958
lmitchell@orcaenergygroup.com

For media enquiries:

Celicourt (PR)
Mark Antelme
Jimmy Lea
Orca@celicourt.uk
+44-20 8434 2643

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. Announces Completion of Q3 2021 Interim Filings

TORTOLA, BRITISH VIRGIN ISLANDS – November 17, 2021: 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 nine month periods ended September 30, 2021 with the Canadian securities regulatory authorities. All amounts are in United States dollars (“$”) unless otherwise stated.

Jay Lyons, Chief Executive Officer, commented:

“We are very pleased with Orca’s performance to date in 2021. Our production and revenues remained strong during the period and we continue to hit the targets we have set for ourselves. Operationally, Orca remains on track with the installation of compression equipment, designed to ensure the Company can maintain production volumes at 102 MMcfd, with the potential to increase by a further 70 MMcfd.  Additionally, the well remediation is in process and is expected to be completed in Q1 2022. With a tight control on costs, we maintain a strong balance sheet, enabling us to not only continue investing in the creation of further value from the world class Songo Songo gas field, but also making appropriate returns to our shareholders. 

On behalf of the Board, I would like to thank Blaine Karst for his significant contribution to the Company over the years.  We wish him the very best for his retirement.  We are very pleased to extend a warm welcome to Lisa Mitchell as our new CFO.  Lisa brings a wealth of experience in senior finance and leadership roles within the African energy sector. We will keep our stakeholders appraised of our progress as we move forward in the last quarter of 2021.” 

Highlights

  • Revenue increased by 7% for Q3 2021 and by 9% for the nine months ended September 30, 2021 compared to the same prior year periods. The increase for Q3 2021 was primarily a result of the increased sales to the power sector. The increase for the nine months ended September 30, 2021 was a result of the increased sales to both the industrial sector and power sector. Gas deliveries increased by 6% for Q3 2021 and by 3% for the nine months ended September 30, 2021 compared to the same prior year periods. The Q3 2021 increase is due to the 11% increase in gas deliveries to the power sector being partially offset by the decrease of 13% in gas deliveries to the industrial sector as a result of an increase in downtime due to unplanned maintenance at a cement plant. The increase for the nine months ended September 30, 2021 reflects the increase in gas deliveries of 4% to the power sector.
  • Net income attributable to shareholders increased by 412% for Q3 2021 and decreased by 27% for the nine months ended September 30, 2021 compared to the same prior year periods. The increase for Q3 2021 was a combination of the increase in revenue, a decrease in general and administrative expenses and a reversal of loss allowances for receivables in Q3 2021 compared to a loss allowance for receivables in Q3 2020 as a result of the Company fully providing for a receivable from the Tanzanian Revenue Authority (“TRA”) who issued an Agency Notice for $5.3 million obligating the commercial bank of PanAfrican Energy Tanzania Limited’s (“PAET”), the Company’s subsidiary operating in Tanzania, to release funds in favour of the TRA.  The decrease for the nine months ended September 30, 2021 compared to the same prior year period is primarily related to the decrease in the reversal of loss allowances related to the lower collection of arrears from the Tanzanian Electric Supply Company Limited (“TANESCO”) despite higher revenue.
  • Net cash flows from operating activities for Q3 2021 increased by 63% and decreased by 1% for the nine months ended September 30, 2021 compared to the same prior year periods primarily reflecting the changes in net income and non-cash working capital.
  • Adjusted funds flow from operations increased by 4% for Q3 2021 and by 20% for the nine months ended September 30, 2021 compared to the same prior year periods. The increases were primarily a result of the increase in revenue and the reduction in general and administrative expenses.
  • Capital expenditures decreased by 61% for Q3 2021 and increased by 29% for the nine months ended September 30, 2021 compared to the same prior year periods. The capital expenditures in 2021 primarily relate to the installation of compression facilities and the commencement of the well workover program for the SS-3, SS-4 and SS-10 wells. The capital expenditures in 2020 primarily related to the flowline decoupling project and the compression project. The Company is installing inlet compression to allow production volumes to be sustained at approximately 102 million standard cubic feet per day (“MMcfd”) in the near term (3-5 years), through the Songas Limited (“Songas”) infrastructure. The workover program is scheduled to be completed in Q1 2022 at a gross cost of $21.4 million of which $3.9 million has been incurred to date. The rig is currently on site and under preparation to commence the workover on well SS-3. Subject to demand volumes and associated natural reservoir pressure declines, the workovers and compression facilities provide the opportunity to initially increase production potential to a total of 172 MMcfd by also utilizing the National Natural Gas Infrastructure (“NNGI”). The original value of the contract for compression was $38.0 million, however price variations due to increased costs of sea freight, a requirement to increase on site power generation capacity, and design changes to cable routing for the project have seen the total project costs increase to $41.7 million. Of this, $39.2 million has already been incurred and following installation and testing the balance of $2.5 million is forecast to be paid in 2022. The project is currently on schedule for completion in Q2 2022.
  • The Company exited the period in a strong financial position with $46.5 million in working capital (December 31, 2020: $74.2 million), cash and cash equivalents of $71.4 million (December 31, 2020: $104.2 million) and long-term debt of $49.6 million (December 31, 2020: $54.2 million). The decrease in working capital, cash and cash equivalents was primarily related to the substantial issuer bid completed in January 2021 (“2021 SIB”) and the reclassification of $5.0 million of long-term debt into current liabilities as it becomes due in April 2022.
  • On September 9, 2021 the Company declared a dividend of CDN$0.10 per share on each of its Class A common voting 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 September 29, 2021 which was paid on October 15, 2021.
  • On June 21, 2021 the Company commenced a normal course issuer bid (“NCIB”) to purchase Class B Shares through the facilities of the TSXV and alternative trading systems in Canada. To date, 9,400 Class B Shares have been purchased and cancelled by the Company pursuant to the NCIB.

Click here to download the full report

Orca Announces Appointment of New Chief Financial Officer

TORTOLA, BRITISH VIRGIN ISLANDS – October 18, 2021: 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  Lisa Mitchell will join the Company as Chief Financial Officer (“CFO”), effective November 1, 2021. Lisa will replace Blaine Karst, who will be retiring. Blaine has committed to stay on through April, 2022 in an advisory capacity to ensure a smooth transition.

Lisa was most recently the CFO and Executive Director of San Leon Energy plc (AIM: LSE), a Nigeria focused oil and gas company listed in London, and before that was CFO and Executive Director of Lekoil Limited (AIM: LEK),  an Africa focused oil and gas company with interests in Nigeria. Lisa has also held senior roles at Ophir Energy plc (LSE: OPHR), a former FTSE 250 energy company, CSL Limited (ASX top 50) and Mobil Oil Australia.

Lisa is a FCPA (Australia) and holds a Bachelor of Economics (major in Accounting) from La Trobe University, Melbourne and a Graduate Diploma in Applied Corporate Governance from the Governance Institute of Australia.

Jay Lyons, Chief Executive Officer, commented:  “We are excited to welcome Lisa Mitchell to Orca, as she brings a wealth of experience in the international financial and oil and gas markets and has worked extensively with companies that have producing assets in Africa. Her prior experience will be a great asset to Orca. We would also like to thank Blaine Karst for the significant contribution he has made to Orca over the past six years and we are also pleased that he has agreed to stay on to ensure an orderly handover.”

Lisa’s appointment is subject to the approval of the TSX Venture Exchange.

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
jlyons@orcaenergygroup.com

Blaine Karst
bkarst@orcaenergygroup.com

For media enquiries:
Celicourt (PR)
Mark Antelme
Jimmy Lea

Orca@celicourt.uk

+44-20 8434 2643

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 Announces Quarterly Dividend

TORTOLA, British Virgin Islands – September 9, 2021:  Orca Energy 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 $0.10 (Cdn) per Class A Common Voting Share (“Class A Shares“) of the Company and $0.10 (Cdn) per Class B Subordinate Voting Share (“Class B Shares“) of the Company. The dividend will be payable on October 15, 2021 to holders of Class A Shares and Class B Shares of record on September 29, 2021.

About Orca Energy 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.

For further information please contact:

Jay Lyons
jlyons@orcaenergygroup.com

Blaine Karst
bkarst@orcaenergygroup.com

For media enquiries:
Celicourt (PR)
Mark Antelme
Jimmy Lea

Orca@celicourt.uk

+44-20 8434 2643

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. Announces Completion of its Q2 2021 Interim Filings

TORTOLA, BRITISH VIRGIN ISLANDS – August 17, 2021: 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, 2021 with the Canadian securities regulatory authorities. All amounts are in United States dollars (“$”) unless otherwise stated.

  • Revenue increased by 17% for Q2 2021 and by 11% for the six months ended June 30, 2021 compared to the same prior year periods. The increase was primarily a result of the increased revenue from industrial customers and the increase in capital expenditures which caused the reduction of the Tanzanian Petroleum Development Corporation (“TPDC”) share of revenue. Gas deliveries decreased by 1% for Q2 2021 and increased by 2% for the six months ended June 30, 2021 compared to the same prior year periods. The Q2 2021 decrease is due to the 2% decrease in gas deliveries for power partially offset by the increase of 3% in gas deliveries to industrial customers as a result of expansion of the Company’s customer base. The increase of 2% for the six months ended June 30, 2021 reflects the increase in gas deliveries of 4% in Q1 2021 compared to Q1 2020.
  • Net income attributable to shareholders decreased by 48% for Q2 2021 and by 62% for the six months ended June 30, 2021 compared to the same prior year periods primarily a result of the decrease in the reversal of loss allowances related to the lower collection of arrears from Tanzanian Electric Supply Company Limited (“TANESCO”) in Q2 2021 and the six months ended June 30, 2021 compared to the same periods in 2020.
  • Net cash flows from operating activities for Q2 2021 decreased by 24% and by 34% for the six months ended June 30, 2021 compared to the same prior year periods. The decreases were primarily a result of the lower collection of TANESCO arrears.
  • Adjusted funds flow from operations for Q2 2021 increased by 54% and by 33% for the six months ended June 30, 2021 compared to the same prior year periods. The increases were primarily a result of the increase in revenue.
  • Capital expenditures increased by 912% for Q2 2021 and by 596% for the six months ended June 30, 2021 compared to the same prior year periods. The capital expenditures in the first six months of 2021 primarily relate to the installation of compression facilities. The capital expenditures in the first six months of 2020 primarily related to the flowline decoupling project. The Company is currently installing compression to allow production volumes to be sustained at approximately 102 million standard cubic feet per day (“MMcfd”) through the Songas Infrastructure. This provides the possibility to expand production capabilities to 172 MMcfd by also utilizing the National Natural Gas Infrastructure (“NNGI”). The original value of the contract for compression was $38.0 million, however price variations due to increased costs of sea freight, a requirement to increase on site power generation capacity, and design changes to cable routing for the project have seen the total project costs increase to $41.3 million, of which $36.2 million has already been incurred with forecast expenditure of $5.1 million in 2022 following installation and testing. The project is currently on schedule for completion in Q2 2022.
  • The Company exited the period in a strong financial position with $39.5 million in working capital (December 31, 2020: $74.2 million), cash and cash equivalents of $63.3 million (December 31, 2020: $104.2 million) and long-term debt of $49.4 million (December 31, 2020: $54.2 million). The decrease in working capital, cash and cash equivalents was primarily related to the substantial issuer bid completed in January 2021 and the reclassification of $5.0 million of long-term debt into current liabilities as it becomes due in April 2022.
  • As at June 30, 2021 the current receivable from TANESCO was $ nil (December 31, 2020: $ nil). TANESCO’s long-term trade receivable as at June 30, 2021 was $26.5 million with a provision of $26.5 million compared to $27.6 million (provision of $27.6 million) as at December 31, 2020. Subsequent to June 30, 2021 the Company invoiced TANESCO $2.4 million for July 2021 gas deliveries and TANESCO paid the Company $3.5 million.
  • On June 4, 2021 the Company declared a dividend of CDN$0.10 per share on each of its Class A common voting 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, 2021 which was paid on July 15, 2021.
  • On June 21, 2021 the Company commenced a normal course issuer bid (“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 NCIB.

Jay Lyons, Interim Chief Executive Officer, commented:

“We are very pleased with Orca’s performance to date in 2021. Our production and revenues remained strong during the period and we continue to hit the targets we have set for ourselves. Operationally, Orca remains on track with the installation of compression equipment, designed to ensure the Company can maintain production volumes at 102 MMcfd, with the potential to increase by a further 70 MMcfd.  With a tight control on costs, we maintain a strong balance sheet, enabling us to not only continue investing in the creation of further value from the world class Songo Songo gas field, but also making appropriate returns to our shareholders.  We will keep our stakeholders appraised of our progress as we move forward in the second half of 2021.” 

Click here to download the full Q2 report

Orca Provides Operation Update

TORTOLA, British Virgin Islands August 3, 2021:  Orca Energy Group Inc. (“Orca” or the “Company“) is pleased to announce that its subsidiary, PanAfrican Energy Tanzania Ltd., has recently signed an agreement with Exalo Drilling S.A. for the workover of three onshore wells on Songo Songo Island, commencing in September 2021.  The 2021 workover program, which will see the wells recompleted with corrosion resistant chrome tubing, will return two wells to production and ensure the third well can continue to produce safely.  The 2021 workover program, estimated at a gross cost of $21.4 million, will increase the production potential from the world class Songo Songo reservoir and ensure the Company remains the leading gas supplier in Tanzania.  The Company supplies gas to over 40 industrial customers in Dar es Salaam and is responsible for the production of approximately 60% of gas generated power in the country.  

Jay Lyons, Chief Executive Officer, commented: 

With the installation of compression scheduled for completion in 2022, the forthcoming workover of the wells will enable the Company to maintain and increase production for several years as required to reliably meet increasing demand for natural gas as Tanzania’s  industrialisation acceleratesand will ensure Tanzanians continue to benefit from their rich natural resources.”   

About Orca Energy Group Inc.

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

For further information please contact:

Jay Lyons, CEO                                                         Blaine Karst, CFO

jlyons@orcaenergygroup.com                       bkarst@orcaenergygroup.com

For media enquiries: 

Celicourt (PR)
Mark Antelme, Jimmy Lea, Jemima Lowe
Orca@celicourt.uk
+44-020-8434-2754

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.

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.  More particularly, this press release contains, without limitation, forward-looking statements pertaining to the following:  the estimated cost of the 2021 well workover program; the increase in production potential of the Songo Songo reservoir as a result of the 2021 well workover program; and the percentage of gas generated power that the Company is responsible for in Tanzania .   

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, reduced global economic activity as a result of the COVID-19 pandemic, including lower demand for natural gas and a 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; 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; risk that contract counterparties are unable to perform contractual obligations; the potential negative effect on the Company’s rights under the Company’s production sharing agreement (“PSA”) and other agreements relating to its business in Tanzania as a result of the Petroleum Act, passed in 2015 (the “Act”), and other recently enacted and future 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; lack of availability of qualified personnel or management; fluctuations in commodity prices, foreign exchange rates and/or interest rates; stock market volatility; competition for, among other things, capital, drilling equipment and skilled personnel; failure to obtain required equipment for drilling; delays in drilling plans; failure to obtain expected results from drilling of wells; changes in laws and regulations including the adoption of new environmental laws and regulations, impact of new local content regulations and changes in how they are interpreted and enforced; imprecision in reserve estimates; the production and growth potential of the Company’s assets; obtaining required approvals from regulatory authorities; failure to increase production volumes and capabilities on Songo Songo Island; risk that the expenditures to increase production volumes and capabilities with the 2021 workover program is higher than anticipated; and unanticipated changes to legislation and the effect on the Company’s operations, including, but not limited to, the Act and the Natural Gas Pricing Regulation made under the Act. 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, that the Company is able to implement the 2021 workover program on the timeline and at the cost anticipated; that the Company is able to increase production volumes and capabilities on Songo Songo Island; that the Company will be able to negotiate Additional Gas sales contracts; the ability of the Company to complete developments and increase its production capacity; the actual costs to complete the Company’s workover program are in line with estimates; the impact of the COVID-19 pandemic 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 have adequate funding to continue operations; that the Company will successfully negotiate agreements; receipt of required regulatory approvals; the ability of the Company to increase production at a consistent rate; infrastructure capacity; commodity prices will not further 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 labour; 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; and other matters.

The forward-looking information contained in this press 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.

Orca Announces Updated Independent Natural Gas Resource Report

TORTOLA, British Virgin Islands June 17, 2021:  Orca Energy Group Inc. (“Orca” or the “Company“) announces its updated independent natural gas resource assessment report with an effective date of March 31, 2021 (the “Resource Report”). All references to “contingent resources” and “prospective resources” in this press release refer to “contingent conventional natural gas resources” and prospective conventional natural gas resources”, and all references to “natural gas” in this press release refer to “conventional natural gas” as defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101“).

The Resource Report was prepared by McDaniel & Associates Consultants Ltd. (“McDaniel”) in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook“) and NI 51-101 to provide our stakeholders with an understanding of the contingent and prospective natural gas resources in the Songo Songo license acreage in Tanzania (the “Songo Songo License“) that is subject to the terms of the Songo Songo Production Sharing Agreement (the “Songo Songo PSA”). The Songo Songo PSA expires concurrently with the expiry of the Songo Songo License in October 2026.

Subsequent to the preparation of the Company’s Independent Reserves Report by McDaniel, with an effective date of December 31, 2020 (the “Reserves Report“), the Company commissioned McDaniel to update the 2019 Resource Report (effective June 30, 2019) to incorporate the updated sub-surface geological model for the Songo Songo field reflected in the Reserves Report. Additional information in respect of the Company’s reserves and the Reserves Report is included in Orca’s report dated March 2, 2021 relating to reserves data and other oil and gas information under NI 51-101, which is filed on its profile on SEDAR at www.sedar.com.

All the Company’s resources are located in Tanzania. Resources included herein are stated on a Company gross basis unless noted otherwise. Company gross resourcesrefers to the Company’s 92.07 percent interest in the resources.  

Highlights

  • At March 31, 2021 the Company’s unrisked Best Estimate contingent resources were 297 billion standard cubic feet (“Bcf”) (148 Bcf risked Best Estimate contingent resources). This is the estimated resources associated with the Songo Songo Main (“SSM”) pool and the Songo Songo North (“SSN”)pools not recovered prior to the current Songo Songo PSA expiry in October 2026.
  • At March 31, 2021 the Company’s unrisked Best Estimate prospective resources were 611 Bcf (106 Bcf risked Best Estimate prospective resources). This is the estimated prospective resources at Songo Songo Extreme North (“SSExt-N”) and Songo Songo West (“SSW”).
  • The Resource Report was prepared to incorporate the detailed sub-surface geological model for the Songo Songo field which was updated in 2020 and incorporated into the Reserves Report. The reduction in unrisked and risked Best Estimate contingentresources is primarily due to: (a) the remapping of the SSN structure into two structures SSN and SSExt-N, which are separated by a graben (structural low); and (b) a general reduction in estimated contingent resources. The SSExt-N prospect has been categorised as a prospective resource in the Resource Report, and carries additional risk associated with the chance of discovery. The smaller SSN pool continues to be classified as a contingent resource tested by the SS-1 discovery well, and the interpreted communication with the producing SSM pool.

The full report can be downloaded here.

Orca Energy Group Inc. Announces Normal Course Issuer Bid and Appointment of Officer

TORTOLA, British Virgin Islands, June 14, 2021: Orca Energy Group Inc. (“Orca” or the “Corporation“) announces its intention to commence a Normal Course Issuer Bid (the “Bid“) for purchase of its Class B Subordinate Voting Shares (“Class B Shares“) through the facilities of the TSX Venture Exchange (the “Exchange“) and alternative trading systems in Canada.

Purchases made pursuant to the Bid will not exceed 500,000 Class B Shares, representing approximately 2.74% of the total outstanding Class B Shares as at June 3, 2021. In accordance with the policies of the Exchange, purchases under the Bid will commence on June 21, 2021 and will continue until the earlier of the purchase of the maximum number of Class B Shares under the Bid and June 20, 2022.

Purchases pursuant to the Bid will be made by Research Capital Corporation (“Research Capital“) on behalf of the Corporation. Purchases will be made by Research Capital based on the parameters prescribed by the Exchange and applicable securities laws.

Orca has implemented the Bid as it is of the view that at times the trading price of the Class B Shares of the Corporation on the Exchange does not fully reflect the underlying value of the Corporation’s business. Orca believes that its purchase of Class B Shares under the Bid is in the best interest of the Corporation and its shareholders.

Appointment of Officer

Orca would also like to announce that the Board of Directors has confirmed the appointment of Mr. Jay Lyons as the Chief Executive Officer effective immediately. Mr. Lyons has been a member of Orca’s Board of Directors since May 29, 2019 and has been acting as the Interim Chief Executive Officer since September 16, 2020.

Orca Energy 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.

For further information please contact:

Jay Lyons
jlyons@orcaenergygroup.com

Blaine Karst
bkarst@orcaenergygroup.com

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 Statements

This news release contains forward-looking statements or information (collectively “forward-looking statements”) within the meaning of applicable securities legislation. More particularly, this news release contains, without limitation, forward-looking statements pertaining to the following: the Corporation’s plans to purchase Class B Shares under the Bid; and Orca’s belief that purchase of Class B Shares under the Bid is in the best interests of the Corporation and its shareholders. Although management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, operational, competitive, political and social uncertainties and contingencies. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

These forward-looking statements involve substantial known and unknown risks and 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: the risk that Orca does not purchase the maximum number of Class B Shares or any Class B Shares under the Bid; the risk that the anticipated benefits of the Bid may not be achieved; the political and economic circumstances in the countries in which Orca operates; the effect of pandemics on the Corporation’s operations and financial position; share price volatility and dilution; the impact of general economic conditions, including global and local oil and gas prices; industry conditions including changes in laws and regulations, and changes in how they are interpreted and enforced; lack of availability of qualified personnel; ability to access sufficient capital from internal and external sources; the failure of counterparties to perform under the terms of their contracts; and other factors, many of which are beyond the control of the Corporation.  Therefore the Corporation’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 in these forward-looking statements will transpire or occur, or if any of them do so, what benefits the Corporation 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 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, the ability of the Corporation to achieve the benefits of the Bid;  that the Corporation 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 Corporation will have adequate funding to continue operations; that the Corporation will successfully negotiate agreements; receipt of regulatory approvals; commodity prices will not deteriorate significantly; future capital expenditures; conditions in general economic and financial markets; that Orca’s conduct and results of operations will be consistent with its expectations; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; and other matters. 

The forward-looking statements contained in this news release are made as of the date hereof and Orca undertakes no obligation to update publicly or revise and 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 Quarterly Dividend and Results of the Annual Meeting of Shareholders

TORTOLA, British Virgin Islands – June 3, 2021:  Orca Energy 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 $0.10 (Cdn) per Class A Common Voting Share (“Class A Shares“) of the Company and $0.10 (Cdn) per Class B Subordinate Voting Share (“Class B Shares“) of the Company. The dividend will be payable on July 15, 2021 to holders of Class A Shares and Class B Shares of record on June 30, 2021.

Approval of Resolutions at Annual Meeting of Shareholders

Orca is pleased to announce that its shareholders approved all resolutions at its annual meeting of shareholders held on June 3, 2021 as follows:

  1. Resolution to fix the number of directors to be elected at the meeting at four (4).
  2. Resolution to elect four (4) board members, being David Ross, Jay Lyons, Linda Beal and Frannie Léautier.
  3. Resolution to appoint KPMG LLP, Chartered Accountants, as the Company’s auditors.

About Orca Energy 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.

For further information please contact:

Jay Lyons
jlyons@orcaenergygroup.com

Blaine Karst
bkarst@orcaenergygroup.com

For media enquiries:
Celicourt (PR)
Mark Antelme
Jimmy Lea

Orca@celicourt.uk
+44-20 8434 2643

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.