Orca Energy Group Inc. Announces an Operational Update

Core Viewpoint - Orca Energy Group Inc. provides an operational update highlighting challenges related to the expiration of the Interim Power Purchase Agreement with Songas Limited, which may lead to an indefinite shutdown of the Songas Power Plant and impact gas production from the Songo Songo gas field [2][3][12] Production and Operations - The annual average production guidance for Additional Gas is now forecasted to be between 65 - 68 million cubic feet per day (MMcfd), excluding volumes previously expected to be supplied to Songas [3] - Following the cessation of Protected Gas on July 31, 2024, Songas continued to lift gas volumes at an average rate of 17.8 MMcfd in August and September, but payment issues arose due to the Tanzania Petroleum Development Corporation's (TPDC) refusal to approve a Gas Sales Agreement [4][5] - The workover program on well SS-7 is ongoing, with expectations to restore production by November 2024, although project costs have increased to $22 million due to logistical and weather delays [7] Commercial Developments - The company issued a Notice of Dispute against the Government of Tanzania regarding breaches of investment agreements and contractual disputes, with initial meetings held but no resolution reached [8] - PAET has continued to supply gas to Tanzania Portland Cement PLC, but invoicing issues have arisen due to TPDC's refusal to approve the Supplementary Gas Agreement, leading to outstanding invoices totaling$5.39 million [9] Financial Overview - As of September 30, 2024, the company reported cash and cash equivalents of $101.7 million, an increase from$97.2 million as of June 30, 2024, with no change in long-term debt [10] - The receivable from TANESCO was reported at $8.1 million, with a long-term receivable of$22 million as of the same date [10]