Orca Energy Group Inc. Class B · TSXV:ORC.A
Orca Energy Group Inc. Class B — Investor Presentation (November 2021)
30 slides from Orca Energy Group Inc. Class B's investor presentation, November 2021
Slide 1: Orca Energy Group Inc. Corporate Presentation
ORCA ENERGY GROUP INC. A Sustainable Tanzanian Natural Gas Business Corporate Presentation November 2021
Slide 2: Disclaimer
Disclaimer The information in this presentation (the "Presentation") is provided as of November 25, 2021 for informational purposes only, is not complete, is based (in part) on information prepared for internal evaluation purposes only and does not contain all material information about Orca Energy
Slide 3: Overview
Overview ($ denotes United States Dollar, unless otherwise stated. C$ denotes Canadian Dollar, unless otherwise stated) Delivering Economic Growth and Prosperity to Tanzania through the Development and Delivery of Natural Gas Resources - Long-term partnerships with Tanzanian government entities - Op
Slide 4: Why Tanzania?
Why Tanzania? Positive Investment Environment - Current administration continuing to engage with industries and open for international investment Growing Economy - 2nd largest economy in East Africa with an average GDP growth of 7% p.a. over the past decade Rapidly Growing Demand for Energy - Popula
Slide 5: 2020 and Q1-Q3 2021 Key Highlights
2020 and Q1-Q3 2021 Key Highlights FINANCIAL OPERATIONAL 2020 revenue of $77.9 million Increased 8.6% year-on-year Conventional natural gas production of 57.7 million standard cubic feet per day (“MMcfd”) in 2020 Q1-Q3 2021 revenue of $61.2 million (Q1-Q3 2021: 57.8 MMcfd) Increased 9.5% to Q1-Q3 20
Slide 6: Strategy
Strategy Focused on Value Creation Sustainable Natural Gas Business in Tanzania 1 2 3 Natural Gas Growth of Sustainable Returns Development and Midstream to Stakeholders Delivery Business Maximize Value Creation, Prudent Allocation of Capital and Slide 6 Returns to Stakeholders
Slide 7: Natural Gas Development and Delivery
1 Natural Gas Development and Delivery Songo Songo Field Development - Proactive development to meet growing domestic gas demand - Access to excess gas processing and downstream pipeline capacity - Development can be fully funded from existing working capital and internal cash flow Licence Extension
Slide 8: Natural Gas Development and Delivery: Production Growth
1 Natural Gas Development and Delivery Production Growth Since 2004, steady growth of MMcfd Gas Production Growth gas sales with the expansion of natural gas power generation 180 and new industrial customers to 2013 160 140 Lower sales to power generation starting in 2015 due to the 120 commissionin
Slide 9: Songo Songo Natural Gas Reserves and Resources
1 Natural Gas Development and Delivery Songo Songo Natural Gas Reserves and Resources SSExtN Conventional Natural Gas Reserves Reserves/ SSN Contingent 1P 2P Resources As at December 31, 2020 (BCF) 203 229 NPV15 reserves ($million) 188 208 SSM Prospective Resources Songo Songo Note - Independent McD
Slide 10: Value consideration based on 2P reserves
1 Natural Gas Development and Delivery Value consideration based on 2P life of licence reserves (October 2026) Market capitalization based on outstanding shares after the 2021 SIB of 19.984 million at C$5.40 per share at a C$/$ exchange rate of 0.768 (as at September, 30 2021) C$13.57 per share $71m
Slide 11: Growth of Midstream Business
2 Growth of Midstream Business Distribution – Fuelling Economic Growth Power Sector - ~ 500 MW of gas fired power generation in Tanzania which Orca supplies ~60% of the gas - Installed power generation capacity of ~ 1,600 MW (Gas fired and Hydro) - Power consumption averaging ~ 900 MW/day - Plans an
Slide 12: Sustainable Returns to Stakeholders
3 Sustainable Returns to Stakeholders Capital discipline to generate sustainable cash flow Transition from costly Returns to shareholders imported fuel (oil and by dividends and select diesel) to domestic natural share buy backs. gas lowering GHG emissions Government revenue Quarterly results sharin
Slide 13: Return to Shareholders and Value Creation
3 Sustainable Returns to Stakeholders Return to Shareholders and Value Creation Regular dividends initiated in C$40 million SIB completed in 2019. Increased to January 2021. C$0.10/Share/Q in 2021 SIB NCIB initiated June 2021 C$6.1 million dividends paid YTD (Q1 to Q3 ) 2021 Assets continue to gener
Slide 14: Returns to Tanzanian Stakeholders
3 Sustainable Returns to Stakeholders Returns to Tanzanian Stakeholders ($000’S) 60,000 50,000 24,388 11,938 40,000 11,489 30,000 17,947 13,072 13,544 22,391 20,000 14,203 12,517 14,863 15,559 14,744 10,000 9,480 10,065 10,050 5,512 5,946 6,482 0 2016 2017 2018 2019 2020 2021 Q3 YTD Corporation Tax
Slide 15: Committed to Operating in a Sustainable and Responsible Way
3 Sustainable Returns to Stakeholders Committed to Operating in a Sustainable and Responsible Way - A sustainable business generating enduring long-term value through the prudent governance of business risk and financial resources. - Sustainability maintained through minimizing environmental impact,
Slide 16: Committed to Operating in a Sustainable and Responsible Way
3 Sustainable Returns to Stakeholders Committed to Operating in a Sustainable and Responsible Way Local Employment and Career ESG Programme Health and Education Projects Development - Environment - Natural gas will remain an - Staff turnover is very low generally, staff leave - Orca has sought to de
Slide 17: Summary
Summary - Well established, reliable and ESG focused producer of Songo Songo natural gas from wellbore to end users, since 2004 - Prudent fiscal management with a focus on stakeholder returns supported by strong cash flow - Significant conventional natural gas reserves of 229 BCF 2P (Year End 2020)
Slide 18: Orca Energy Group Inc.
ORCA ENERGY GROUP INC. info@orcaenergygroup.com www.orcaenergygroup.com Slide 18
Slide 19: Appendix
APPENDIX Slide 19
Slide 20: Directors
Directors David Ross • Extensive experience in international tax law • Partner in the Calgary-based law firm of Burnett Duckworth & Palmer Non Executive Chairman • Secretary to the Board since the Company was formed in 2004 Jay Lyons • Joined the Company in May 2019 as Non-Executive Director • Took
Slide 21: Management
Management Jay Lyons • Joined the Company in May 2019 as Non-Executive Director • Took on the role of Interim Chief Executive Office in 2020, and Chief Executive Officer in 2021 • Private investor with considerable experience in the oil and gas industries in both Canada and the United States Chief E
Slide 22: Glossary
Glossary TPDC = Tanzania Petroleum Development Corporation GSA = Gas Sales Agreement TPCC = Tanzania Portland Cement Company AG = Additional Gas PG = Protected Gas NNGI = National Natural Gas Infrastructure TANESCO = Tanzania Electric Supply Company PGSA = Portfolio Gas Sales Agreement ARGA = Amende
Slide 23: SSI – An Integrated Gas Project
Growth of Midstream Business SSI – An Integrated Gas Project Songo Songo Island - 25 km offshore mainland Tanzania - c. 200 km south of Dar es Salaam Wells - 8 wells (4 onshore, 4 offshore) - Productive capacity of the wells is c. 165 MMcfd Gas Processing Facilities (250 MMcfd) - Songas: 110 MMcfd -
Slide 24: Growing Demand for Natural Gas
Growth of Midstream Business Growing Demand for Natural Gas Natural Gas will Fuel Economic Growth Gas is Integral to the Development of in Tanzania and East Africa Tanzania’s Infrastructure Projects • Tanzania has several gas generation projects under consideration with the requisite gas processing
Slide 25: Contracts Destinations
Contracts Destinations Approximately 130 MMcfd of Gas Contracted Destination Ubungo 2 129 MW Contracts MDQ MMcfd Kinyerezi 1 TPDC/NNGI TPDC/NNGI Gas Plant 140 150 MW 30 GSA Additional Gas Kinyerezi 2 240 MW 180 Industries 11 MW gas TPCC AG 8 Ringmain (Industries and CNG) TANESCO 26 PGSA Tegeta 45 MW
Slide 26: Advisories
Advisories Advisories Forward-Looking Statements Certain information regarding Orca set forth in this presentation contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words "plan", "expect", “prospective”, "project", "intend",
Slide 27: Advisories
failure to install compression on Songo Songo Island on the timeline anticipated; failure to increase production volumes and capabilities; risk that the Company will not be successful in appealing claims made by the Tanzanian Advisories Revenue Authority (“TRA”) and may be required to pay additional
Slide 28: Advisories
There are numerous uncertainties inherent in estimating quantities of proved and probable reserves, quantities of contingent resources and prospective resources and future net revenues to be derived therefrom, including many factors beyond the Company's control. The reserves, contingent resources, p
Slide 29: Advisories: Resources - Unrisked
Resources - Unrisked(1)(2) Advisories WI(9) Low Best High Chance of Discovery Chance Development of Structure Classification (%) MMcf MMcf MMcf %(7) %(7) SSM/N - Neocomian Contingent 92.07 250,190 296,659 345,789 100.0 50.0 (Development Unclarified) Sub-Total Contingent Resources(3)(4)(8) 250,190 29
Slide 30: Advisories
In this presentation, the following terms have the following meanings: Advisories • "contingent resources" are those quantities of petroleum estimated, as of the given date, to be potentially recoverable from known accumulations using established technology or technology under development but which
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