Business
Orca Energy Group Announces Definitive Agreement to Divest Tanzanian Business
TORTOLA, British Virgin Islands, April 13, 2026 (GLOBE NEWSWIRE) -- Orca Energy Group Inc. (" Orc...
About this update from Orca Energy Group Inc. Class B
[{"type":"text","content":"Orca Energy Group Announces Definitive Agreement to Divest Tanzanian Business\nTORTOLA, British Virgin Islands, April 13, 2026 (GLOBE NEWSWIRE) -- Orca Energy Group Inc. (\"Orca\" or the \"Company\") announces that it has entered into a definitive Share Purchase Agreement (the \"Share Purchase Agreement\") with Taifa Gas Tanzania Limited (\"Taifa\") and Amber Energy Investment L.L.C-FZ (\"Amber\", and together with Taifa, the \"Purchasers\") pursuant to which Orca will sell all of the outstanding shares of PAE PanAfrican Energy Corporation (\"PAEM\"), its wholly-owned Mauritian holding subsidiary (the \"Proposed Transaction\"). Upon closing of the Proposed Transaction, Taifa will acquire 49% of PAEM and Amber will acquire 51%. Transaction Rationale The Board of Directors (the \"Board\") decision to exit the Tanzanian business follows a lengthy and comprehensive assessment of the risks and challenges Orca faces regarding its Tanzanian operations and the future of its business, including ongoing disputes and claims and the prospects of extending the Songo Songo development license and production sharing agreement. While discussions to extend the license and production sharing contract continue, there is significant uncertainty on the outcome and terms of any such extension. In that context, the Board determined that retaining the business would require Orca to maintain significant cash balances to address highly uncertain future commitments and contingent tax liabilities, including potentially material capital expenditures, development-related obligations and the costs of arbitration and other litigation, the timing and outcome of which are years away and uncertain. The Board therefore believes that preserving cash for shareholder distributions and divesting the Tanzanian business, together with its associated commitments and liabilities is in the best interests of the Company and its shareholders and consistent with Orca's long-stated objective of realizing value from its Tanzanian business in an orderly and strategic way. The Board also believes that the Proposed Transaction moves the Songo Songo asset to its next phase under a buyer group anchored by Taifa, a market leader in the importation, storage and safe handling, distribution and export of liquified petroleum gas in Tanzania, and one whose established operating ...