Orca Energy Group that operates the Songo Songo integrated gas project in Tanzania has issued a redemption notice Swala Oil & Gas (Tanzania) plc (“Swala”), requesting that Swala redeems 20 per cent of the outstanding Swala convertible preference shares.
According to the company’s Q2 2022 Interim results released yesterday seen by The Business Wiz, the shares were issued to the Company in accordance with the investment agreement dated December 29, 2017, among the company’s subsidiary PanAfrican Energy (PAE) Corporation and Swala’s subsidiary Swala (PAEM) Limited.
Swala a Dar es Salaam Stock Exchange (DSE) listed company is a shareholder of PanAfrican Energy Corporation (“PAEM”), a Mauritius-registered company that owns PanAfrican Energy Tanzania Limited (“PAET”).
The Fair Competition Commission of Tanzania (“FCC”) earlier on August 8, 2022 had issued a Statement of Case in respect of the acquisition by the Company of a 7.93 per cent equity interest in PAE Panafrican Energy Corporation (“PAEM”) on 29 December 2017.
The Company is not required to respond to this initial statement but must await further communication in which the FCC shall set out its position and claim.
Commenting on the results,Jay Lyons, the Orca Energy Group Chief Executive Officer, said “We continue to deliver operationally, which can be seen by the robust financial performance Orca achieved during the quarter. We were able to increase our revenue significantly year-on-year, leaving the business in a strong financial position and able to capitalize on the investment opportunities we have identified for the Songo Songo gas field,”
He said the company has a number of important workstreams planned for the second half of 2022, including the 3D seismic acquisition planned for the second half of 2022, which is expected to provide greater clarity on the contingent and prospective resource potential in the first half of 2023.”
According to the company’s results revenue increased by 39 per cent for Q2 2022 and by 43 per cent for the six months ended June 30, 2022 compared to the same prior year periods.
“The increases were primarily a result of increased sales to customers in the power sector. Gas deliveries increased by 71 per cent for Q2 2022 and by 46 per cent for the six months ended June 30, 2022 compared to the same prior year periods,” the statement said.
As at June 30, 2022 the current receivable from TANESCO was $4.3 million (December 31, 2021: $2.0 million).
“TANESCO’s long-term trade receivable as at June 30, 2022 and December 31, 2021 was $26.5 million with a provision of $26.5 million. Subsequent to June 30, 2022 TANESCO paid the Company $5.6 million and the Company invoiced TANESCO $5.3 million for July 2022 gas deliveries,” the company said
Orca Energy Group Inc. is an international public company engaged in natural gas 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.
The principal asset of Orca is its indirect interest in the Production Sharing Agreement (“PSA”) with TPDC and the Government of Tanzania in the United Republic of Tanzania.
The PSA covers the production and marketing of certain conventional natural gas from the Songo Songo licence offshore Tanzania.