TSX-V: ORC.A, ORC.B
TORTOLA, British Virgin Islands, July 15, 2014 /CNW/ -
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. 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