Business
Orca Exploration announces Q3 2013 results
TSX-V: ORC.A, ORC.B TORTOLA, British Virgin Islands , Nov. 27, 2013 /CNW/ - Orca Exp...
About this update from Orca Energy Group Inc. Class B
[{"type":"text","content":"\n\n\nTSX-V: ORC.A, ORC.B\n\n\nTORTOLA, British Virgin Islands, Nov. 27, 2013 /CNW/ - Orca Exploration\n Group Inc. (\"Orca\" or \"the Company\") announces its results for the\n third quarter ended 30th September 2013.\n\n\nHighlights\n\n\n\nUS$16.4 million was received from TANESCO during Q3 and a subsequent\n payment of US$7.2 million.\n\n\n\n\nAt 30 September 2013, TANESCO owed the Company US$53.0 million including\n arrears of US$44.5 million (30 June 2013: US$46.3 million, including\n arrears of US$39.7 million). Currently TANESCO owes US$52.8 million.\n\n\n\n\nWorld Bank is working towards payment guarantees on future gas\n deliveries whilst TANESCO makes an application for a 68% tariff\n increase and the Government deals with the arrears. If successful, the\n Company anticipates the initiatives will arrest the payments problem\n and establish a foundation to moving forward.\n\n\n\n\nWith no real progress on key contractual issues, the Company initiated\n contractual mechanisms on the US$34 million Cost Pool dispute and the\n alleged US$21 million Songas tariff claim to put issues on a timeline\n to resolution.\n\n\n\n\nTanzania made real progress on the National Natural Gas Infrastructure\n Project with approximately 120 km of pipe laid to date and the\n Government maintaining its target onstream date of January 2015.\n\n\n\n\nPlans continued for Songo Songo with the Company submitting a field\n development plan and engaging a multi-lateral lending agency to\n evaluate funding the approximate US$160 million programme whilst gas\n contract terms are agreed and issues are settled.\n\n\n\n\nNegotiations on a 120 MMcfd gas sales agreement with the Tanzania\n Petroleum Development Corporation (TPDC) in its capacity as gas\n aggregator continued during the quarter - pricing is the principal term\n yet to be agreed.\n\n\n\n\nProduction continued at full capacity averaging 98 MMcfd for the quarter\n with Additional Gas sales averaging 65.7 MMcfd up 14% over the prior\n period (Q3 2012: 57.5 MMcfd) and up 12% over Q2 2013 (58.4 MMcfd), the\n increase in Additional Gas sales a result of a reduction in Protected\n Gas off take during the quarter.\n\n\n\n\nIndustrial sales volume increased by 2% to 11.9 MMcfd from 11.7 MMcfd in\n Q2 2013. Power sector sales volumes during Q3 averaged 53.9 MMcfd up\n 15% over Q2 at 46.7 MMcfd.\n\n\n\n...