Business
Orca Exploration announces its result for the quarter ended 30 June 2010
Orca Exploration announces its result for the quarter ended 30 June 2010
About this update from Orca Energy Group Inc. Class B
[{"type":"text","content":"\n\n\n\n Aug. 27, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\nTSX-V: ORC.A, ORC.B\n\nTORTOLA, British Virgin Islands, Aug. 27 /CNW/ - Orca Exploration Group Inc ("Orca Exploration" or the "Company") announces its results for the quarter ended 30 June 2010.\n\n\n >\n\n\nChairman & CEO's Letter to Shareholders\n\nTo increase shareholder value, Orca Exploration will focus on three growth strategies:\n\n\n >\n\n\nOur goal is clear - to grow long term shareholder value and have that value recognised. Over the first half of 2010, Orca has taken important steps to maximise the potential of its Tanzanian gas business and to create additional upside through participation in new exploration and development projects. Our growth activities have included:\n\n\n >\n\n\nOrca has the financial strength to engage in these vigorous growth initiatives. We have a strong balance sheet and increasing cash reserves. The Company had US$18 million in cash reserves at the end of June and funds flow is expected to increase at approximately US$2 million per month until the end of 2010.\nThis strong cash position will be supplemented with the proceeds of up to approximately US$18 million from the rights issue which is due to close in October 2010.\n\nStrong and growing funds flow in Tanzania\n\nDuring the second quarter of 2010, Orca's gas production and marketing in Tanzania generated funds flow of US$4.9 million, an 96% increase compared with the same period in 2009.\nGas sales volumes will continue to increase in Q3 2010 as textile production takes advantage of the availability of cheap cotton and there is greater demand for gas in electricity generation as the country's hydro generation output declines during the dry season.\nHowever, the need to increase gas throughput (currently restricted to 90 MMcfd) remains urgent as there have been recent occasions when demand for gas exceeded the infrastructure capacity. Orca is working with all...