Business
Orca Exploration announces record 2012 results amid a year of challenges
TSX-V: ORC.A, ORC.B TORTOLA, British Virgin Islands, April 29, 2013 /CNW/ - Orca Explor...
About this update from Orca Energy Group Inc. Class B
[{"type":"text","content":"\n\n\n\n\n\nTSX-V: ORC.A, ORC.B\n\n\nTORTOLA, British Virgin Islands, April 29, 2013 /CNW/ - Orca Exploration\n Group Inc. (\"Orca\" or \"the Company\") announces its results for the year\n ended 31 December 2012.\n\n\n\nOrca Exploration operated its Tanzania Songo Songo gas field at maximum\n plant and pipeline capacity resulting in record operating and financial\n results.\n\n\n\n\nProfit after tax for the year was a record US$18.3 million, or US$0.52\n per share diluted, up 130% over 2011.\n\n\n\n\nAn 18% increase in gas sales volumes plus a 10% increase in the average\n gas price, together with higher cost recoveries as a result of capital\n spending combined to double funds flow from operations over 2011 to a\n record US$45.8 million, or US$1.30 per share diluted.\n\n\n\n\nCapital spending in 2012 was US$54.7 million (2011: US$18.1 million) of\n which US$38 million was expended on SS-11 drilling and completion,\n US$7.9 million on preparation for SS-12 and Songo Songo West drilling,\n and US$7.5 million on the unsuccessful La Tosca exploration well in\n Italy.\n\n\n\n\nGiven TANESCO and Songas non-payments, record funds flow did not\n translate to cash -- balances at the end of 2012 were US$16.0 million,\n down 54% from 2011, net of US$54.7 million in capital spending during\n the year and including US$6.0 million in bank borrowings. Accordingly,\n the Company has incorporated a going concern note into its 2012\n Consolidated Financial Statements.\n\n\n\n\nWorking capital was US$46.8 million, which included a US$33.3 million\n receivable from TANESCO -- at the end of the year the Company had drawn\n US$6.0 million of a US$10.0 million senior debt facility which was set\n up in Q3 to assist in financing TANESCO receivables.\n\n\n\n\nAverage gas prices up 10% in 2012 to US$4.31/Mcf (2011: US$3.92/Mcf),\n industrial gas prices were down 7.5% in 2012 to US$9.31/Mcf from\n changes in the sales mix, and average power sector gas prices increased\n 15% over 2011 to US$3.18/mcf from US$2.77/mcf, pursuant to the PGSA and\n ARGA.\n\n\n\n\nCurrent TANESCO receivable is US$49.3 million, or about US$0.90 per\n share on a net basis - Government of Tanzania has raised US$600 million\n in debt and US$100 million in World Bank budget support finance and\n assured the Company that arrears will be paid from these proceeds.\n\n\n\n\nSongo Songo...