19 August 2014

Tanzania: ORCA Supply Gas to 37 Local Factories As Buyers Court Its Assets

AS manufacturers wean themselves from over dependence on power from the national grid, Orca Exploration through it's local subsidiary, PanAfrican Energy is supplying 37 factories with natural gas as a source of energy.

Orca Exploration Group Inc. Chief Financial Officer and Director, Robert Wynne said as the company marks 10 years since starting to supply natural gas from Songo Songo islands, its production stands at 99 per cent of all the natural gas used in the country.

"Today we produce 99 per cent of natural gas in Tanzania which in turn fires over 60 per cent of the power generated in the country and also provides fuel to 37 industrial companies in Dar es Salaam," Mr Wynne said in a statement.

He said Orca which has been operating in the country for the past two decades has third parties which have shown an interest to buy it or part of its assets and that the British Virgin islands based company has not solicitated any buyers.

"Neither Orca Exploration Group Inc. nor its Tanzanian operating subsidiary PanAfrican Energy Tanzania Limited is actively seeking buyers for either Orca or PanAfrican Energy," Wynne pointed out.

The Orca CFO and Director further noted that as a listed company in Canada it is fully transparent and has a legal duty to make timely disclosure of all material facts concerning its business to its shareholders.

Last month, Orca released a statement which stated that some third party buyers have shown an interest in the company and its assets. "On July 15, 2014 in response to speculation arising from unsolicited expression of interest in purchasing Orca advanced from a number of third parties to the company, we issued a press release," he explained.

The statement further noted that 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," the statement added.

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 concluded.

In August 2004 the Songo Songo natural gas assets were spun out as a separate company (EastCoast Energy Corporation). In November 2006 EastCoast Energy shareholders approved a name change to Orca Exploration Group Inc. and trading of the company shares on the Toronto Stock Exchange as Orca Exploration commenced on 4 April 2007.

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