Orca Exploration Group’s subsidiary PanAfrican Energy Tanzania signs long-term Gas Sales Agreement with TPDC

Orca Exploration Group Inc. (“Orca” or the “Company“) Orca Exploration Group Inc (TSX-V: ORC.A, ORC.B), provides the following operational update on its current activities in Tanzania, through its subsidiary PanAfrican Energy Tanzania (“PAET”).

PAET has entered into a long-term Gas Sales Agreement (“GSA”) with the Tanzania Petroleum Development Corporation (“TPDC”). The GSA provides for the supply of up to 20 million standard cubic feet per day (“MMscfd”) of natural gas to the TPDC operated National Natural Gas Infrastructure (“NNGI”) on Songo Songo Island, where the gas will be processed and transported to Dar es Salaam, primarily for power generation.

Sales of gas under the milestone GSA will replace 20 MMscfd of the 35 MMscfd recently sold by PAET under the short-term sales agreement established with TPDC and TANESCO in December 2018. The balance of 15 MMscfd sold by PAET under the short-term agreement will continue to be supplied through the NNGI alongside the 20 MMscfd sold under the GSA, until completion of the installation of refrigeration on the Songas processing plant by the middle of the year. On completion of the refrigeration project, the 15 MMscfd will revert to be sold by PAET to TANESCO through the Songas processing facility and the short-term agreement will conclude. There is scope within the GSA for the parties to agree an increase in the supply volumes to meet increases in demand on a long-term basis.

Under the short-term agreement PAET achieved average Additional Gas sales of 61 MMscfd through the first quarter of 2019, compared to an average of 40 MMscfd for 2018. With spare productive capacity, PAET is ready to increase supply to help meet expected increases in demand as TANESCO expands its power generation capacity and TPDC continues to develop its downstream business. Under the GSA, gas will be supplied initially through PAET’s SS-12 well, drilled in 2016 as part of a wider development of the Songo Songo field. The Company is in the final stages of installing refrigeration on the Songas processing facility as part of an overall package that will eventually include compression to sustain gas availability. 

Nigel Friend, Chief Executive Officer of Orca Exploration commented:
“The signing of this GSA is a landmark moment for Orca, and our subsidiary PanAfrican Energy Tanzania. The agreement ensures that we will play an important role in helping Tanzania meet its long-term energy requirements, as the country continues to develop in to one of the largest economies in Africa. This event is an important step for the Company, as we look to build on our portfolio and become a major energy supplier in Africa. We look forward to delivering on increasing energy demands in country, and we thank our partners in Tanzania for their continued support and cooperation.”

Andrew Hanna, Managing Director of PAET commented:
“Through foresight, flexibility and cooperation, PAET is today in prime position to meet immediate and near-term future energy needs of Tanzania. The degree of effort by all parties that has gone in to establishing this GSA cannot be underestimated. It demonstrates what can be achieved here in Tanzania when we work together in a transparent and helpful way. We believe that this agreement once again places PAET in a position where we can support Tanzania in continuing to achieve its enormous potential.”

About Orca Exploration Group Inc.

Orca Exploration Group Inc. 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.B and ORC.A. For further information please contact:

Nigel Friend, CEO
Chief Executive Officer
+44-7798-502316
nfriend@orcaexploration.com

Blaine Karst, CFO
Chief Financial Officer
+44 7471-902734
bkarst@orcaexploration.com

For media enquiries:

Celicourt (PR)
Mark Antelme
Jimmy Lea
Jemima Lowe
Orca@celicourt.uk
+44-207-5209261

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 announces appointment of Jay C. Lyons and Linda Beal to Board of Directors and declaration of a dividend

TORTOLA, British Virgin Islands May 29, 2019: Orca Exploration Group Inc. (“Orca” or the “Company“) today announced that Jay C. Lyons and Linda Beal were appointed at the Annual General Meeting as non-executive directors on Orca’s Board of Directors.

Additionally, Orca today announced that its Board of Directors has declared a cash dividend (the “Dividend”) of $0.06 (Cdn) per Class A Common Voting Share of the Company (“Class A Shares”) and $0.06 (Cdn) per Class B Subordinate Voting Share of the Company (“Class B Shares”) payable to the holders of Class A Shares and Class B Shares of record on June 30, 2019 and payable on or about July 31, 2019.

The Dividend is subject to Orca’s Chief Financial Officer having signed and delivered a certificate to Orca’s Board of Directors confirming that immediately after the payment of the Dividend, the value of the assets of the Company will exceed its liabilities and that the Company will be able to pay its debts as they fall due.

About Orca Exploration Group Inc.

Orca is an international public company engaged in natural gas exploration, development and supply in Tanzania through its 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 www.orcaexploration.com.

For further information please contact:

Nigel Friend, CEO
Chief Executive Officer
nfriend@orcaexploration.com

Blaine Karst, CFO
Chief Financial Officer
bkarst@orcaexploration.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 Information
Certain information regarding Orca set forth in this press release contains forward-looking statements that involve substantial known and unknown risks and uncertainties.  The use of any of the words “plan”, “expect”, “prospective”, “project”, “intend”, “believe”, “should”, “anticipate”, “estimate” or other similar words, or statements that certain events or conditions “may” or “will” occur are intended to identify forward-looking statements. Such statements represent Orca’s internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, and dividends paid and payable by Orca. These statements are only predictions and actual events or results may differ materially. Although the Company’s 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, competitive, political and social uncertainties and contingencies. Many factors could cause Orca’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Orca.

In particular, forward-looking statements contained in this press release include, but are not limited to, statements with respect to Orca’s future dividends.

These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions; industry conditions including changes in laws and regulations, and changes in how they are interpreted and enforced; competition; lack of availability of qualified personnel; risks related to obtaining required approvals of regulatory authorities; risks associated with negotiating with governments and other counterparties; fluctuations in foreign exchange or interest rates; changes in income tax laws or tax rates; ability to access sufficient capital from internal and external sources; 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 press release are based upon assumptions which management believes to be reasonable, Orca cannot assure investors that actual results will be consistent with these forward-looking statements.  Readers are cautioned not to place undue reliance on forward-looking statements included in this press release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. With respect to forward-looking statements contained in this press release, Orca has made assumptions regarding, among other things:availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the impact of increasing competition; conditions in general economic and financial markets; effects of regulation by governmental agencies; receipt of partner, regulatory and community approvals; future operating costs; effects of regulation by governmental agencies; 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.

Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide investors with a more complete perspective on Orca’s current and future operations and such information may not be appropriate for other purposes. Orca’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Orca will derive. These forward-looking statements are made as of the date of this press release and Orca disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.