TSX-V: ORC.A, ORC.B
TORTOLA, British Virgin Islands, July 15, 2014 /CNW/ - Orca Exploration Group Inc. ("Orca" or "the Company") today advises that the Company is in discussions with a number of third parties which have made unsolicited approaches to the Company relating to the sale of the Company, a significant asset disposal, strategic investment or other transaction involving the Company.
Orca is issuing this press release in response to speculation regarding a potential sale of the Company or a significant transaction.
Orca is from time to time approached about financing and participation in its assets and takes every approach seriously, notwithstanding that few such approaches progress past initial responses. No agreement has been entered into and accordingly no assurance can be given that these discussions will lead to a binding agreement relating to the sale of the Company, significant asset disposal, strategic investment or other type of transaction.
Orca intends to make no further announcements or communications regarding these proposals until either an agreement has been reached or discussions are terminated without such an agreement being reached.
The Company remains committed to the growth of its Songo Songo gas production and is continuing with preliminary engineering, negotiation of commercial agreements and arrangement of finance in respect of such development. The Company has recently received from TANESCO a payment of US$5.96 million against arrears as an allocation of the World Bank Second US$100 million Development Policy Operation. This is substantially less than that which was represented to the Company prior to disbursement. Together with weekly payments of approximately US$1.8 million, TANESCO currently owes the Company US$52.4 million of which US$46.0 million is overdue. The Company continues to pursue the full repayment of arrears from TANESCO under a Notice of Dispute filed on 2 April 2014.
Orca Exploration Group Inc.
Orca Exploration Group Inc. is an international public company engaged in natural gas exploration, development and supply in Tanzania through the wholly-owned subsidiary PanAfrican Energy Tanzania Limited, as well as oil and gas appraisal in Italy. Orca trades on the TSX Venture Exchange under the trading symbols ORC.B and ORC.A.
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 press release contains forward-looking statements. More particularly, this press release contains statements concerning, but not limited to: discussions with a number of third parties which have approached the Company unsolicited relating to the sale of the Company or a significant asset disposal or other transaction involving the Company; the Company's plans in respect of further announcements or communications regarding proposals from third parties; repayment of the TANESCO receivables; the funding of the Songo Songo field development plan; and the Company's strategic plans. 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 Orca's control, and many factors could cause Orca's actual results to differ materially from those expressed or implied in any forward-looking statements made by Orca, including, but not limited to: failure to receive payments from TANESCO; failure to obtain adequate funding to meet the Company's obligations as they come due; risk that the contingencies related to the development work for the full field development plan for Songo Songo are not satisfied; risk that the expected onstream date for the Tanzania National Natural Gas Infrastructure Project is delayed; failure to obtain funding for full field development plan for Songo Songo; risk that the Company will be required to pay additional taxes and penalties; the impact of general economic conditions in the areas in which Orca operates; civil unrest; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; increased competition; 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, 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; imprecision in reserve estimates; the production and growth potential of the Company's assets; obtaining required approvals of regulatory authorities; risks associated with negotiating with foreign governments; inability to access sufficient capital; failure to successfully negotiate agreements; and risk that the Company will not be able to fulfill its obligations. In addition there are risks and uncertainties associated with oil and gas operations, therefore Orca's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits that Orca 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 Orca in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors Orca believes are appropriate in the circumstances, including, but are not limited to: 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 Orca to add production at a consistent rate; infrastructure capacity; commodity prices will not deteriorate significantly; the ability of Orca to obtain equipment 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; that the Company will obtain funding for full field development plan for Songo Songo; 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 press release are made as of the date hereof and Orca undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE: Orca Exploration Group Inc.
For further information: W. David Lyons, Chairman and Chief Executive Officer, +44-7717-100200, [email protected]; Robert S. Wynne, Chief Financial Officer and Director, +1 (403) 399-8046, [email protected]