TORTOLA, British Virgin Islands, Aug. 14, 2018 (GLOBE NEWSWIRE) -- Orca Exploration Group Inc. ("Orca" or the "Company") (TSX-V:ORC.A) (TSX-V:ORC.B) announces that it has filed its condensed consolidated interim financial statements and management's discussion and analysis for the three and six month periods ended June 30, 2018 with the Canadian securities regulatory authorities.
Q2 2018 Financial and Operating Highlights
(all amounts are in United States Dollars (“$”) unless otherwise indicated)
On June 18, 2018, the Company received the preference share consideration of $4.0 million relating to the sale of 7.933% (7,933 Class A common shares) of its subsidiary, PAE PanAfrican Energy Corporation (“PAEM”), to Swala (PAEM) Limited, a wholly owned subsidiary of Swala Oil & Gas (Tanzania) plc. (“Swala”). The net consideration received by the Company for the transaction was $19.7 million of which $15.7 million cash was received on closing of tranche 1 in January 2018. The preference shares entitle the holder to a 10% per annum distribution payable 15 days after each quarter end. The Company has indefinitely extended the outside date to complete tranches 2 and 3 of the transaction pursuant to which Swala would acquire up to 40% of PAEM (an additional 32.067%) on the same terms and conditions as tranche 1. The Company has retained the right to terminate the extension for tranches 2 and 3 at any time. There are no assurances given that one or more of the tranches will be completed on the terms previously disclosed or at all.
(1) Please refer to the Management Discussion &Analysis (“MD&A”) for the definition.
Operating and Financial Highlights
THREE MONTHS ENDED JUNE 30 | % CHANGE | SIX MONTHS ENDED JUNE 30 | % CHANGE | |||||||||
(Expressed in $’000 unless indicated otherwise) | 2018 | 2017 | Q2/18 vs Q2/17 | 2018 | 2017 | YTD/18 vs YTD/17 | ||||||
OPERATING | ||||||||||||
Daily average gas delivered and sold (MMcfd) | ||||||||||||
Additional Gas | 33.7 | 39.5 | (15)% | 35.6 | 41.5 | (14)% | ||||||
Industrial | 14.2 | 12.7 | 12% | 14.1 | 12.1 | 16% | ||||||
Power | 19.5 | 26.8 | (27)% | 21.5 | 29.3 | (27)% | ||||||
Average price ($/mcf) | ||||||||||||
Industrial | 7.80 | 7.69 | 1 % | 7.80 | 7.72 | 1% | ||||||
Power | 3.62 | 3.57 | 1 % | 3.61 | 3.57 | 1% | ||||||
Weighted average | 5.39 | 4.90 | 10 % | 5.27 | 4.79 | 10% | ||||||
Operating netback ($/mcf) (1) | 3.18 | 3.44 | (8)% | 2.68 | 3.40 | (21)% | ||||||
FINANCIAL | ||||||||||||
Revenue | 14,959 | 16,810 | (11)% | 29,182 | 34,936 | (16)% | ||||||
Net cash flows from operating activities | 12,657 | 12,038 | 5 % | 14,184 | 20,825 | (32)% | ||||||
per share - basic and diluted ($) | 0.36 | 0.35 | 3 % | 0.40 | 0.60 | (33)% | ||||||
Net income (loss) | 12,487 | (622) | n/m | 7,849 | 2,218 | 254% | ||||||
per share - basic and diluted ($) | 0.35 | (0.02) | n/m | 0.22 | 0.06 | 267% | ||||||
Funds flows from (used in) operations (1) | 4,398 | 4,610 | (5)% | (2,656) | 10,536 | n/m | ||||||
per share - basic and diluted ($) | 0.12 | 0.13 | (8)% | (0.08) | 0.30 | n/m | ||||||
Capital expenditures | 1,042 | 350 | 198 % | 1,861 | 7,822 | (76)% | ||||||
AS AT | ||||||||||||
JUNE 30, 2018 | DECEMBER 31, 2017 | |||||||||||
Working capital (including cash) | 72,129 | 69,575 | 4% | |||||||||
Cash | 54,182 | 122,322 | (56)% | |||||||||
Investments in short term bonds | 62,870 | - | n/m | |||||||||
Long-term loan | 58,596 | 58,518 | 0% | |||||||||
AS AT | ||||||||||||
JUNE 30, 2018 | JUNE 30, 2017 | |||||||||||
Outstanding Shares ('000) | ||||||||||||
Class A | 1,750 | 1,750 | 0% | |||||||||
Class B | 33,506 | 33,106 | 1% | |||||||||
Total shares outstanding | 35,256 | 34,856 | 1% | |||||||||
Weighted average of outstanding Class A and Class B shares | 35,256 | 34,856 | 1% | |||||||||
(1) The funds flow from operations and operating netback are non-GAAP measures which may not be comparable to other companies. Please refer to the MD&A for Information on non-GAAP measures.
The complete condensed consolidated unaudited interim financial statements and MD&A for the three and six month periods ending June 30, 2018 may be found on the Company’s website www.orcaexploration.com or on the Company's profile on SEDAR at www.sedar.com.
Orca Exploration Group Inc.
Orca Exploration Group Inc. is an international public company engaged in natural gas exploration, development and supply in Tanzania through its subsidiary PanAfrican Energy Tanzania Limited, as well as oil and gas appraisal in Italy. Orca trades on the TSX Venture Exchange under the trading symbols ORC.B and ORC.A.
For further information please contact:
E Alan Knowles Interim Chief Executive Officer +44 7585 564 343 [email protected] | |
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Abbreviations
Mcf | thousand cubic feet |
MMcfd | million cubic feet per day |
Non-GAAP Financial Measures
The Company discloses several financial measures herein that do not have any standardized meaning prescribed under International Financial Reporting Standards ("IFRS"). These financial measures include funds flow from operating activities, funds flow per share, and operating netbacks.
Funds flow from operating activities represents cash flow from operations before working capital changes and demonstrates the Company's ability to generate cash necessary to achieve growth through capital investments. Funds flow from operating activities per share is calculated on the basis of funds flow from operating activities divided by the weighted average number of shares outstanding.
Operating netbacks represent the profit margin associated with the production and sale of additional gas and is calculated as revenues less processing and transportation tariffs, government parastatal’s revenue share, operating and distribution costs for one thousand standard cubic feet of additional gas. This is a key measure as it demonstrates the profit generated from each unit of production and is widely used by the investment community.
Management believes that these financial measures are useful supplemental information to analyze operating performance and provide an indication of the results generated by the Company’s principal business activities. Investors should be cautioned that these measures should not be construed as an alternative to net income or other measures of financial performance as determined in accordance with IFRS. The Company's method of calculating these measures may differ from other companies, and accordingly, they may not be comparable to similar measures used by other companies. Please see the Company’s MD&A, which is available at www.sedar.com for additional information about these financial measures.