Business
Orca Exploration announces Q2 2014 results
TSX-V: ORC.A, ORC.B TORTOLA, British Virgin Islands , Aug. 27, 2014 /CNW/ - Orca Ex...
About this update from Orca Energy Group Inc. Class B
[{"type":"text","content":"\n\nTSX-V: ORC.A, ORC.B \n\n\n\nTORTOLA, British Virgin Islands, Aug. 27, 2014 /CNW/ - Orca Exploration Group Inc. (\"Orca\" or \"the Company\") announces its results for the quarter and six months ended 30 June 2014. \n\nHighlights\n\n\n\nThe highest seasonal rainfall in several years allowed TANESCO to increase the use of hydro power in Tanzania and reduced nominations for the Company's Songo Songo gas production during the second quarter of 2014. Total field production averaged 84.2 million standard cubic feet per day (\"MMcfd\") down 11% from the prior year period, and down 10% from 93.9 MMcfd in Q1 2014. Additional Gas sales volumes averaged 50.0 MMcfd, a decrease of 14% over the same period in 2013 (Q2 2013: 58.4 MMcfd) and a decrease of 13% over Q1 2014 (57.4 MMcfd). \nThe situation with respect to the outstanding accounts receivable from TANESCO began to stabilise with regular weekly payments which commenced during the quarter. The Company will continue to draw attention to the going concern issue until discernable progress has been made in reducing arrears. In the event that the Company does not collect from TANESCO the balance of the receivables and TANESCO continues to be unable to pay the Company for subsequent gas deliveries, the Company may be unable to undertake the level of capital expenditure required to increase well deliverability to the expansion target of 190 MMcfd. \nWorking capital was US$37.2 million at 30 June 2014, up 95% from 31 March 2014 (US$19.1 million) and up 34% over 31 December 2013 (US$27.8 million), a result of cash received from TANESCO against the long-term portion of the receivable. As at 30 June 2014, TANESCO owed the Company US$63.8 million of which US$53.4 million was in arrears. \nTANESCO currently owes the Company US$50.4 million, of which US$45.2 million is in arrears. The Company continues to review legal and contractual options available to collect the arrears and arrest the increase in TANESCO receivables, including but not limited to the suspension of gas deliveries to TANESCO. \nQ2 income was US$6.5 million or US$0.18 per share diluted, as opposed to a loss in the prior year period (Q2 2013: US$6.6 million loss or US$0.19 per share) and compared with income of US$1.6 million or US$0.04 per share in Q1 2014, with increased net revenues offsetting the cost of carrying the TANE...