From Globenewswire:

Orca Energy Group Inc. has provided an operational update, reporting that it achieved average natural gas production of 85.6 MMcfd during 2023, meeting its revised forecasts for the period. The company is proactively managing daily production volumes to meet contracted sales obligations through 2026 and is seeking to engage with the Government of Tanzania to discuss an extension to its development license beyond October 2026. The company also reported on ongoing production, sales, and demand forecasts, as well as field development activities and its financial and corporate status, including cash and cash equivalents of $101.6 million as of December 31, 2023. Notably, discussions are ongoing for new commercial terms at the Songo Songo field.

Based on current contracted volumes continuing and the end of the Protected Gas regime, the company forecasts average gas production (for AG) to be in the range of 80 – 90 MMcfd for the full year in 2024. Ongoing discussions with Songas Limited and Tanzania Portland Cement Company are also taking place to negotiate new commercial terms of the gas supply agreement from August 1, 2024. Facilities management activities, such as the installation of positive chokes in all wells and the intervention in offshore well SS-7, are ongoing to increase production and address water production issues. The company’s financial and corporate status, including cash and cash equivalents of $101.6 million as of December 31, 2023, are also detailed in the update.

Additionally, the company continues to wait for a response from TPDC on the initiation of the license extension requested in April 2023 and has engaged in settlement agreements with the Fair Competition Commission of Tanzania to resolve allegations. Orca Energy Group Inc. affirms its commitment to managing production according to contracts to ensure all contract volumes are met through October 2026. As an international public company engaged in natural gas exploration, development, and supply in Tanzania, Orca Energy Group Inc. is actively working on commercial milestones and is committed to delivering updates to stakeholders over the coming months.



Read more: Orca Energy Group Announces Operational Update