Orca Energy Group Inc. Announces Independent Reserves Evaluation for Year End 2025

Core Viewpoint - Orca Energy Group Inc. has announced the approval of its Independent Reserves Evaluation as of December 31, 2025, indicating significant decreases in its natural gas reserves and future net revenue compared to the previous year [1][2]. Reserves Evaluation - The evaluation of the Company's conventional natural gas reserves was conducted by McDaniel & Associates Consultants Ltd. in accordance with Canadian standards [2]. - The Songo Songo Production Sharing Agreement (PSA) with the Tanzanian Petroleum Development Corporation (TPDC) is set to expire in October 2026 [2]. Reserves Data - Total Proved ("1P") Gross Company conventional natural gas reserves at year-end 2025 were 17.5 billion standard cubic feet (Bcf), a 57% decrease from 40.2 Bcf at year-end 2024 [7]. - Total Proved plus Probable ("2P") Gross Company conventional natural gas reserves at year-end 2025 were 19.2 Bcf, down 54% from 41.5 Bcf at year-end 2024 [7]. - The Company estimated gas sales of 26.2 Bcf in 2025, representing a decrease of approximately 2% compared to 2024 [7]. Financial Metrics - The net present value of 1P future net revenue discounted at 10% was $29.2 million at year-end 2025, a 53% decrease from $61.8 million at year-end 2024 [7]. - The net present value of 2P future net revenue discounted at 10% was $31.6 million at year-end 2025, down 51% from $64.7 million at year-end 2024 [7]. Technical Revisions - The reduction in Gross Company 1P reserves was primarily attributed to production of 26.2 Bcf in 2025 and 3.5 Bcf of positive technical revisions due to higher than forecasted gas sales to Power customers [7]. Pricing and Assumptions - The average gas price received by the Company in 2025 was $5.01 per thousand cubic feet (Mcf), with a net price of $4.62/Mcf after transportation tariffs [10]. - The forecast for Brent crude in 2026 is $66.50 per barrel, with Songo Songo gas prices projected at $5.29 per Mcf for proved reserves [11].