Orca Energy Group Inc. Provides Operational and Corporate Update

TORTOLA, British Virgin Islands, August 10, 2020:  Orca Energy Group Inc. (“Orca” or the “Company”) (TSX-V: ORC.A, ORC.B) is pleased to provide the following operational update on its current activities in Tanzania and the appointment of two corporate brokers. All currency amounts in this news release are in United States Dollars ($) unless otherwise stated.

Tanzania

On August 3, 2020 Orca signed a contract with China Petroleum and Technology Development Company (“CPTDC”) for the design, supply, installation and commissioning of natural gas compressors within the Songas gas processing facility on Songo Songo Island. The compressors will work in harmony with the previously installed refrigeration to address declining reservoir pressure and ensure maximum production levels can be sustained, subject to demand, through to the end of the Production Sharing Agreement in 2026.  The compressors are forecast to cost a total of $38 million of which circa $6 million was expended in 2019 and $19 million will be incurred over the remainder of 2020.  The compressors are scheduled to be operational by the end of Q2 2022. 

Orca’s careful management of the operational team on Songo Songo Island has enabled it to maintain production throughout the COVID-19 pandemic.  Orca’s Additional Gas sales averaged 50.6 million standard cubic feet a day (“MMcfd”) for Q2 2020 (Q2 2019: 56.6 MMcfd) and 53.5 MMcfd for the six months ended June 30, 2020 (six months ended June 30, 2019: 59.5 MMcfd).  Gas sales were impacted by sustained and significant rainfalls that enabled the Tanzania Electricity Supply Company (“TANESCO”) to operate its hydro facilities at high utilization rates.  The country is now entering the dry season and gas demand is expected to increase for the remainder of the year.  Despite the lower demand for gas from the power sector, TANESCO has continued to pay back its arrears during the first six months of the year.  Orca continues to benefit from a strong balance sheet, with cash and short-term bonds of $106.1 million as at June 30, 2020.

The Company is preparing for the workover of onshore well SS-10 in early 2021.  A decision on whether to conduct remedial work on two of the older onshore wells, SS-3 and SS-4 will be taken on completion of a major subsurface review of the Songo Songo gas field that will be finalized during Q4 2020.  This review, which includes a re-build of the static and dynamic reservoir models, will enable the Company to assess whether the workover of SS-3 and SS-4, or the drilling of new infill wells will be preferable over the remainder of the license period.  The review will also incorporate the latest trends in pressure measurements to allow a full re-assessment on the contingent and prospective resource potential and associated economics of drilling and developing the natural gas in the areas known as Songo Songo North and Songo Songo West.

Corporate

To further increase Orca’s visibility and help communicate Orca’s strategy, the Company has engaged Canaccord Genuity Limited (“Canaccord”) and Investec Bank plc (“Investec”) to provide advisory and corporate broking services. As part of the mandate, Canaccord and Investec will introduce Orca to respective institutional investor bases, particularly in Europe and Africa. 

Nigel Friend, CEO of Orca commented:

“Despite the challenging macro backdrop, we are very pleased with Orca’s performance in the first six months of 2020.  We are well placed to finance and deliver a number of essential capital projects which are critical to sustaining gas production in Tanzania through to the end of the license period. The Government of Tanzania has shown a long-term commitment to natural gas through its investment in gas infrastructure and we will continue to develop the Songo Songo field with our partner, the Tanzania Petroleum Development Corporation, to fuel economic growth and prosperity in country. 

We are delighted to have engaged Canaccord and Investec who are expected to help the Company expand its institutional investor bases in Europe and Africa. They will also assist us with communicating the success of our project in Tanzania and the long-term investment case of the Company.  I look forward to keeping our shareholders appraised of developments over the coming months.”

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.

Forward Looking Information

Certain information regarding Orca set forth in this news release, including but not limited to: the compressors’ ability to ensure maximum production levels are sustained through to the end of the Production Sharing Agreement in 2026; the forecast cost of the compressors and Orca’s ability to pay in the remainder of 2020; the compressors’ scheduled operational date; expected gas demand; the workover of onshore well SS-10 and the potential remedial work on wells SS-3 and SS-4; the completion of the subsurface review of the Songo Songo gas field in Q4 2020; and Canaccord and Investec’s ability to introduce Orca to institutional investor bases; the Company’s position in the market; and Orca’s intention to continue to develop the Songo Songo field constitute “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.

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.

Orca Exploration Group Inc. Announces Intention to Change its Name to Orca Energy Group Inc.

TORTOLA, BRITISH VIRGIN ISLANDS – July 29, 2020 – Orca Exploration Group Inc. (“Orca” or the “Company” including its subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) announces that it intends to change its legal name to Orca Energy Group Inc. The effective date of the name change is expected to be July 31, 2020.

The Company’s board of directors approved the corporate name change to Orca Energy Group Inc. Completion of the name change is subject to the receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange. No action will be required by existing shareholders with respect to the name change.

Nigel Friend, CEO of Orca, said:

“Today’s announcement is an important moment for Orca, as it reflects the Company’s focus on natural gas, as a transitional fuel, as well as our integrated role in energy developments. As global economies transition towards using less carbon intensive fuel sources, we believe that our strategy of developing proven gas resources for domestic consumption in Africa will leave us well placed to benefit from the global energy transition.  We have stated previously that we intend to become a leading energy supplier on the continent, as seen with our role in Tanzania, where Orca is active throughout the gas value chain.  We are committed to helping the country meet its long-term energy requirements and we believe that we are well placed to achieve the same goal in other parts of Africa.”

Orca Exploration Group Inc.

Orca 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.A and ORC.B.

For further information please contact:

Nigel Friend, CEO
nfriend@orcaenergygroup.com

Blaine Karst, CFO
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.

Forward Looking Information

Certain information regarding Orca set forth in this news release, including but not limited to: Orca’s intention to change its name; the effective date of the name change; approval from the TSX Venture Exchange; Orca’s intention to become a leading energy supplier in Africa; and the Company’s position in the market constitute “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.

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.

Orca Announces Quarterly Dividend

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.

For further information please contact:

Nigel Friend, CEO
nfriend@orcaenergygroup.com

Blaine Karst
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 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.

Orca Announces Completion of Normal Course Issuer Bid

TORTOLA, British Virgin Islands, June 19, 2020:  Orca Exploration Group Inc. (“Orca” or the “Company”) (TSX-V: ORC.A, ORC.B) announces that it has completed its normal course issuer bid (the “Bid“) for its Class B Subordinate Voting Shares (“Class B Shares“).

Under the Bid, Orca repurchased 477,500 Class B Shares at a weighted average price of $5.32 per Class B Share for aggregate consideration of approximately Cdn. $2,540,300. The Class B Shares repurchased under the Bid will be cancelled.

After giving effect to the Bid, Orca will have 24,387,460 Class B Shares and 1,750,495 Class A Common Shares issued and outstanding.

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.

For further information please contact:

Nigel Friend, CEO
nfriend@orcaenergygroup.com  

Blaine Karst, CFO
Bkarst@orcaenergygroup.com

For media enquiries:
Celicourt (PR)
Mark Antelme
Jimmy Lea
Jemima Lowe
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 Exploration Group Inc. Announces Completion of its Q1 2020 Interim Filings, Postponement of the Annual General Meeting and Filing Extension of Executive Compensation Disclosure

TORTOLA, BRITISH VIRGIN ISLANDS – May 21, 2020: Orca Exploration Group Inc. (“Orca” or “the Company” and includes its subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) today announces it has filed its condensed consolidated interim financial statements and management’s discussion and analysis for the three month period ended March 31, 2020 with the Canadian securities regulatory authorities. All amounts are in United States dollars unless otherwise stated.

Click here for the full press release

Orca Exploration Group Inc. Announces Amendment To Its Normal Course Issuer Bid

TORTOLA, BRITISH VIRGIN ISLANDS – April 7, 2020: Orca Exploration Group Inc. (“Orca” or the “Company“) has announced that it has amended its Normal Course Issuer Bid commenced on June 14, 2019 (the “Bid“) to allow it to purchase additional 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 700,000 Class B Shares, representing not more than 5% of the issued and outstanding Class B Shares as at June 14, 2019 (33,505,915 Class B Shares) less 933,028 Class B Shares already purchased under the Bid. In accordance with the policies of the Exchange, purchases under the Bid will commence on April 14, 2020 and will continue until the earlier of the purchase of the maximum number of Class B Shares under the Bid and June 14, 2020.

Purchases pursuant to the Bid will be made by Mackie Research Capital Corporation (“Mackie“) on behalf of the Company. Orca has entered into an automatic purchase plan with Mackie in order to facilitate repurchase of the Class B Shares. The automatic purchase plan allows Mackie to repurchase Class B Shares under the Bid during the Company’s self-imposed blackout periods. Purchases will be made by Mackie based on the parameters prescribed by the Exchange and applicable securities laws and the terms of the parties’ written agreement. The automatic share purchase plan has been approved by the Exchange and will be implemented for the balance of the 12-month term which started when the Company initiated the Bid on June 14, 2019.

Orca has implemented the Bid as it is of the view that at times the trading price of the Class B Shares of the Company on the Exchange does not fully reflect the underlying value of the Company’s business. Orca believes that its purchase of Class B Shares under the Bid is in the best interest of the Company and its shareholders. The combination of Class B Shares already purchased under the Bid and the additional Class B Shares to be purchased under the Bid will not exceed 5% of the total issued and outstanding Class B Shares as at June 14, 2019.

Orca Exploration Group Inc.

Orca 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.A and ORC.B.

For further information please contact:

Nigel Friend, CEO
nfriend@orcaenergygroup.com

Blaine Karst, CFO
bkarst@orcaenergygroup.com

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

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.

Forward Looking Information

Certain information regarding Orca set forth in this news release, including but not limited to, Orca’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 Company and its shareholders, constitute “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. Readers are cautioned not to place undue reliance on forward-looking statements included in this news release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. 

Forward-looking information, by its very nature, involves inherent risks and uncertainties and is based on several assumptions, both general and specific. Such risks and uncertainties include, 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 Company’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 Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Although the forward-looking statements contained in this document are based upon assumptions which management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, the Company has made assumptions regarding, among other things, the ability of the Company to achieve the benefits of the Bid;  availability of skilled labour; timing and amount of capital expenditures; conditions in general economic and financial markets; effects of regulation by governmental agencies; future operating costs; that Orca will have sufficient cash flow or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; 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 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.

Orca Exploration Group Inc. Provides Operational Update

TORTOLA, BRITISH VIRGIN ISLANDS – March 31, 2020: Orca Exploration Group Inc. (“Orca” or the “Company“) provides an operational update. All currency amounts in this news release are in United States Dollars ($) unless otherwise stated.

  • Cash and short-term investments totaled $99.2 million on March 30, 2020 compared to $138.7 million at December 31, 2019. The decrease takes into account payments by the Company pursuant to its recently completed substantial issuer bid in the aggregate amount of approximately $37.8 million (CDN$50 million) and payment of Additional Profit Tax for 2019 of $11.8 million.
  • The sales volumes to date for Q1 2020 have averaged 56.7 million standard cubic feet per day (“MMcfd”) compared to the fourth quarter average for 2019 of 70.8 MMcfd. The decrease in sales volumes in 2020 is primarily a result of an increase in hydro power generation as recent rainfall totals have been significantly above the long-term average reducing the requirement for gas power generation.
  • Subsequent to December 31, 2019 the Company received $14.8 millionfrom the electricity utility, the Tanzanian Electricity Supply Company, against 2020 invoices for gas deliveries of $3.5 million for January and February 2020 and forecasted sales of $1.9 million for March, 2020.

Orca Exploration Group Inc.

Orca 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.A and ORC.B.

For further information please contact:

Nigel Friend, CEO
nfriend@orcaenergygroup.com

Blaine Karst, CFO
bkarst@orcaenergygroup.com

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

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 Exploration Group Inc. Provides Update On Covid-19 Strategy

Orca Exploration Group Inc. (“Orca” or the “Company” including its subsidiaries and affiliates) is announcing that it has taken several steps to limit the impact of the COVID-19 virus on its operations in Tanzania and the health of its employees.

It has been reported that there are now three confirmed cases of COVID-19 in Tanzania, all of whom are foreign nationals or have recently returned from Europe. The Government of Tanzania is reported to be considering control measures which may include restricting access to the country and enforcing self-quarantine for some entrants.

The Company and its subsidiary, PanAfrican Energy Tanzania Limited (“PAET”) have taken action to mitigate the operational impact of the COVID-19 virus. In addition to staff medical briefings and increased sanitization of the offices and other work areas, all non-essential face to face meetings have been curtailed, all non-essential travel to our operational worksites has been stopped, and all Company personnel or contractors entering Tanzania from COVID-19 affected areas are now required to self-isolate for 7 days, extendible to 14 days, if they demonstrate any symptoms of the virus.

The Company’s IT systems are cloud based and are unlikely to be affected by the pandemic. However, with the possibility of increased remote working, internet access and upgraded hardware and software has been provided to all key staff.

On Songo Songo Island (“SSI”), the operational staff rotate every 4 weeks and this provides some in-built cover should some employees contract COVID-19. As part of the contingency planning, we are identifying Company employees and Tanzanian contractors who could fill in for personnel who are required to self-isolate.

Currently the Company is not undertaking any critical activities that will be impacted by the virus in the short term. The debottlenecking of the flowline system that is expected to increase production capacity by 10 million standard cubic feet a day is in process and we have secured the requisite equipment for this project.

During the second half of the year, we will require a land rig for workover operations and the management of this project will need to be undertaken in conjunction with government directives in place at that time. We continue to negotiate an engineering, procurement and construction contract for the installation of compression on SSI by the end of 2021. This compression is essential to ensure that there is no loss in production through Songas’ gas processing and pipeline facilities as field pressure declines. At this stage, we do not envisage any delay with this project.

The Songo Songo natural gas is critical for the generation of electricity in Tanzania and for powering the activities of over 40 industrial customers in Dar es Salaam. These industries are primarily producing consumable end products (e.g. cement, tissues and bottles) for the markets within East Africa and as a consequence the COVID-19 virus is not expected to have a material impact on gas demand. It should also be noted that the recent decline in the oil price has a minimal (circa 5%) effect on our revenue as the majority of the gas volumes are sold at fixed prices.

Orca Exploration Group Inc.

Orca 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.A and ORC.B.

Nigel Friend, CEO
nfriend@orcaenergygroup.com

Blaine Karst, CFO
bkarst@orcaenergygroup.com

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

Forward Looking Information

Certain information regarding Orca set forth in this news release, including but not limited to: whether the Government of Tanzania will restrict access to the country and enforce self-quarantine for some entrants, Orca’s IT systems being affected by the COVID-19 pandemic, Orca’s ability to identify employees and contractors who could fill in for personnel who are required to self-isolate, the increase in production capacity expected to result from the debottlenecking of the flowline system, whether there will be any delay with the installation of compression on Songo Songo Island project, and the impact of the COVID-19 virus on gas demand constitute “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.

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.

Orca Exploration Group Inc. Announces Completion of Substantial Issuer Bid

TORTOLA, BRITISH VIRGIN ISLANDS – March 12, 2020 – Orca Exploration Group Inc. (“Orca” or the “Company” and includes its subsidiaries and affiliates) (TSX-V: ORC.A, ORC.B) today is announcing that it has taken up and paid for 7,692,297 Class B Subordinate Voting Shares (“Class B Shares“) at a price of CDN$6.50 per Class B Share under Orca’s substantial issuer bid to purchase for cancellation a number of its Class B Shares for an aggregate purchase price not to exceed CDN$50 million (the “Offer“). The shares taken up are nine less than previously announced due to rounding. All dollar amounts are in Canadian dollars.

The Class B Shares purchased represent an aggregate purchase price of approximately CDN$50 million and represent 23.6% of the total number of Orca’s issued and outstanding Class B Shares and 22.4% of the total number of Orca’s issued and outstanding shares. After giving effect to the Offer, Orca has 24,864,960 Class B Shares issued and outstanding and 1,750,495 Class A Common Shares issued and outstanding.

Since the Offer was oversubscribed, shareholders who made auction tenders at or below the purchase price and the purchase price tenders had approximately 41.0% of their successfully tendered shares purchased by Orca (other than “odd lot” tenders, which were not subject to proration).

Any shares not purchased, including such shares not purchased as a result of proration or shares tendered pursuant to auction tenders at prices higher than the purchase price or invalidly tendered, will be returned to shareholders as soon as practicable by AST Trust Company (Canada), as depositary.

The full details of the Offer are described in the offer to purchase and issuer bid circular dated January 28, 2020, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which were filed and are available on Orca’s SEDAR profile at www.sedar.com.

This press release is for information purposes only and does not constitute an offer to buy or the solicitation of an offer to sell Orca’s shares.   

Orca Exploration Group Inc.

Orca 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.A and ORC.B.

For further information please contact:

Nigel Friend, CEO
nfriend@orcaenergygroup.com

Blaine Karst, CFO
bkarst@orcaenergygroup.com

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

Forward Looking Information

Certain information regarding Orca set forth in this news release, including but not limited to: when shareholders will receive from AST Trust Company (Canada) the shares not purchased under the Offer, constitute “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.

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.