14 August, 2017

Orca Exploration confirms discussions with Swala Oil & Gas (Tanzania) plc regarding a possible minority investment in the Orca Group

TORTOLA, British Virgin Islands 14 August 2017: Orca Exploration Group Inc. (“Orca” or the “Company”) confirms that it is in discussions with Swala Oil & Gas (Tanzania) plc regarding a possible minority investment in PAE PanAfrican Energy Corporation ("PAEM"), a Mauritius-registered company that is a wholly-owned subsidiary of the Company. There are no assurances that these discussions will lead to a definitive agreement and any such agreement is expected to be subject to Swala securing necessary financing as well as a number of other conditions. There are no assurances that such conditions will be satisfied.  Any investment by Swala, if concluded, is not expected to affect the management or operation of the Company’s operating subsidiary, PanAfrican Energy Tanzania Limited ("PAET") (which will continue to be a wholly-owned subsidiary of PAEM), and the many benefits accruing to Tanzania from the Orca Group's involvement in the Songo Songo Project.

Orca Chairman and Chief Executive Officer, W. David Lyons commented, “We would welcome Swala’s minority participation in the Orca Group. Orca has for some time sought the right partner for a minority stake in the Orca Group and we welcome Swala’s ability to attract and engage Tanzanian investors.  Such an investment is strategic to Orca in underpinning the intrinsic value of our business and providing a platform from which to grow and diversify our company.”

 About the Songo Songo Project

The first gas-to-power project in Sub-Saharan Africa, the Songo Songo Project was initiated by the Government of Tanzania, with the technical and financial support of the World Bank and private sector investors, including the predecessor to Orca. During the period July 2004 – December 2016 the Company estimates that the total economic rent in direct cash payments made to the Government as a result of producing Songo Songo natural gas were US$408 million (or 78%), with PAET earning US$113 million (or 22%), all while enabling the IPP, Songas, to generate power for the state utility, TANESCO, at US$0.05/kWh being the lowest cost thermal generated power in Tanzania.

Beyond the direct cash payments to the Government of Tanzania, the Songo Songo Project has had a significant positive impact on Tanzania’s economy. It has helped to increase energy supply security by reducing the national grid’s dependence on hydropower and importantly has also reduced the use of imported liquid fuel for power generation and process heat production in major industries. From September 2004 to December 2016, the Company estimates that Tanzania has saved over US$5 billion (over TZS 11 trillion at current exchange rates) by substituting Songo Songo natural gas for liquid fuels. 

Orca Exploration Group Inc.

Orca is an international public company engaged in natural gas exploration, development and supply in Tanzania through its wholly-owned subsidiary, PAET. Orca trades on the TSX Venture Exchange under the trading symbols ORC.A and ORC.B. The Company’s Project Agreements are more fully described in the Company’s 2016 Annual Information Form, and available on

For further information please contact:

W. David Lyons,
Chairman and CEO

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.

This news release contains forward-looking information. More particularly, this news release contains statements and information concerning, but not limited to, the impact the proposed transaction would have on the management or operation of the Company’s operating subsidiary, PanAfrican Energy Tanzania Limited, and the continuation of ongoing benefits accruing to Tanzania from the Orca Group's involvement in the Songo Songo Project. Although management believes that the expectations reflected in the forward-looking information are reasonable, it cannot guarantee future agreement, levels of activity, performance or achievements since such expectations are inherently subject to significant uncertainties and contingencies. As a consequence, actual results may differ materially from those anticipated in the forward-looking information.

Forward-looking information involves substantial known and unknown risks and uncertainties, certain of which are beyond Orca's control, and many factors could cause the actual results to differ materially from those expressed or implied in the forward-looking information presented by Orca. Actual results, performance or achievements could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits Orca will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive.

Such forward-looking information is based on certain assumptions made by Orca in light of its experience and current knowledge of the circumstances, as well as other factors that Orca believes are appropriate in the circumstances. The forward-looking information contained in this news release is made as of the date hereof and Orca undertakes no obligation to update publicly or revise forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.


back to home page  |  back to news