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.
Financial reports and other corporation
information concerning Orca may be found on the Company's website
at www.orcaexploration.com or on the Company's profile on SEDAR at
www.sedar.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 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.