Orca Energy Group Inc. Announces Completion of Q1 2025 Interim Filings

Core Viewpoint - Orca Energy Group Inc. reported its Q1 2025 financial results, highlighting operational performance amidst challenges, including a decrease in gas deliveries and ongoing uncertainties regarding license extensions [2][3]. Financial Performance - Revenue for Q1 2025 increased by 2% to $25.4 million compared to $24.9 million in Q1 2024, primarily due to a higher current income tax adjustment [3][8]. - Net income attributable to shareholders decreased by 89% to $102,000 from $969,000 in the same period last year, mainly due to higher depletion and administrative expenses [3][8]. - Net cash flows from operating activities improved significantly to $20.3 million from a negative $6.2 million in Q1 2024, driven by the settlement of receivables and changes in working capital [3][8]. - Capital expenditures decreased by 63% to $548,000 from $1.47 million in Q1 2024, reflecting reduced investment in the Songo Songo gas field [3][8]. Operational Highlights - Daily average gas delivered and sold decreased by 3% to 72.0 MMcfd from 74.3 MMcfd in Q1 2024, with a notable decline in power sector deliveries [3][8]. - The Songas Power Plant remains shut down, contributing to reduced gas liftings for the power sector [3][8]. - The company is focused on maintaining its capital returns policy while reviewing the commercial environment [3]. License and Regulatory Issues - The Tanzanian Petroleum Development Corporation (TPDC) submitted a request for a license extension, but uncertainties remain regarding the timing and terms of the extension [3][4]. - A dispute arose regarding the interpretation of gas agreements, with the Ministry of Energy directing TPDC to continue producing Protected Gas despite contractual agreements [3][4]. Settlement Agreement - On April 15, 2025, a settlement agreement was signed with TANESCO for $52.0 million in unpaid amounts, with payments structured in installments [3][8]. - TANESCO has already made a payment of $10.0 million under the settlement agreement [3][8]. Cash Position - As of March 31, 2025, the company had $70.2 million in cash and cash equivalents, down from $90.1 million at the end of 2024 [3][8]. - Working capital increased to $26.8 million from $21.9 million at the end of 2024, indicating improved liquidity [3][8].