Orca Exploration Group which has its operations in Tanzania and Italy has advised that the Company is in discussions with a number of third parties which have made unsolicited approaches to the Company relating to the sale of the Company, a significant asset disposal, strategic investment or other transaction involving the Company.
In the statement which was dispatched in a press release Orca says shedding light on the issue would help stem 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.
Orca is however quick to say that 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,” reads the statement.
The Company adds it 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.