Monthly Archives: May 2008

Orca Exploration Inc. reports Q1 2008 Financial Results

On May 29, Orca Exploration Group Inc., BVI-registered natural gas exploration and development company, announced its financial results for the quarter ended 31 March 2008. Financial results for the whole period of the year 2007 were published in the end of April.

Current results for this year are: 38% increase in revenue to US$5.3 million (compared to US$3.8 million in the first quarter of the last year), profit before taxation – US$0.3 million (US$0.4 million in Q1 2007). There is also a 100% increase in the net cash flow from operations before working capital changes to US$2.4 million (US$1.2mln in Q1 2007).

In the report, it was noted by President and CEO of the BVI company that, during the first period of the year 2008, Orca Exploration increased gas sales to both the power sector and to industrial customers compared with Q1 2007. Additional Gas Sales to the power sector were up 46%, and industrial gas sales were up 7% over the same period of 2007.

Orca Exploration is also continuing the exploration of new gas reserves in Tanzania, to meet the growing demand for gas by the power sector, and evaluating a number of high potential oil exploration and development opportunities in West Africa.

During all the first quarter of the year, Orca Exploration was engaged in intensive negotiations with the Tanzanian electric power utility, Songas Limited, and the Ministry of Energy and Minerals to secure two long term contracts for the supply for power generation. The negotiations have proceeded well, and contracts are expected to be signed at the beginning of Q3 2008.

Orca’s operations in Q1 2008 generated funds from operations before working capital changes of US$2.4 million – an increase of 100% on Q1 2007. As gas sales increase and marketing costs decrease, this will probably grow in the second half of 2008. The BVI company currently has cash of approximately US$13 mln, and is in the process of arranging a US$5 mln short term overdraft.

During the year 2008, Orca’s management will focus on monetising company’s additional gas reserves through the expansion of sales within the growing Tanzanian natural gas market whilst planning to add reserves in 2009.

BVI-domiciled company markets $100M turnaround fund to invest in Egyptian enterprises

British Virgin Islands private equity firm shop Sphinx Capital Corp. is currently marketing a US$100 mln turnaround buyout fund Sphinx Turnaround Fund, to invest in small and medium enterprises in Egypt. The fund is planning to invest $10 million to $15 million, to acquire majority or controlling stakes in distressed or defaulting companies. The first closing is targeted to occur in July, with committed capital of $75 million. The International Finance Corp is making an equity commitment of up to $20 million in the fund.

Major part of BVI-registered Sphinx Capital Corp. is owned by Citadel Capital, an Egyptian firm founded in 2003 by Ahmed Heikal and Hisham El-Khazindar.

China Gengsheng Minerals, Inc. wins $870,000 contract

China Gengsheng Minerals, Inc., a Chinese company conducting its business through its fully owned BVI-registered subsidiary Gengsheng International Corporation, announced on May 14 that it has signed a contract with Shenyang Hongyuan Co. Ltd., a company registered in Shenyang, Liaoning province in China.

By the terms of the contract, total value of which is US$870,000, China Gengsheng will ship fracture proppants to Shenyang Hongyuan in the period from May 2008 till the end of October 2008. Fracture proppants are light,  bauxite-based materials with round and smooth surface and a quality of resisting high pressure and acid corrosion, used by drillers to release trapped pockets of oil and natural gas.

China Gengsheng Minerals is a leading manufacturer of heat-resistant and energy-saving industrial materials in PRC; in February 2008, the company won four supply contracts for the Hanbao Steel Project, at the amount of approximately $1.9 million.

BVI-registered Albidon Ltd publishes Annual Report 2008 and reveals financial highlights for year 2007

Albidon Limited, a BVI-registered exploration and development company with an emphasis on nickel, has published Annual report 2008, for the year when the company reported it has largely completed transformation from junior explorer to nickel mining company. Now, the company is planning to become an independent producer of high quality nickel concentrates from new mining projects.

The accompanying Financial Report of Albidon Limited and the entities it controls (including the BVI-registered 100% subsidiary Albidon Africa Limited) for the year period ended December 31, 2007 comprises the consolidated balance sheet and income statement, consolidated sheet of equity changes and cash flow statement for the year ended on December 31, as well as summary of accounting policies, other explanatory notes and directors’ declaration.

The company informed on the operating loss after the income tax in the amount of US$2,205,075 (in 2006 it was US$2,667,634). Total assets amount in 2007 was US$128,107,168 (compared to US$60,742,436 in 2006), while total liabilities were US$68,106,220 – compared to US$1,677,036 in 2006. The reported amount of share capital made US$73,736,062 (US$66,040,152 in 2006), total shareholders’ equity for the period of the year 2007 was US$60,000,948. The company reported on the loss per share (basic or diluted) in the amount of US$1.44  (US$2.46 in 2006).

Concerning the Munali Nickel Project in Zambia, which is the primary focus of the company, Albidon Limited informed that in February 2007 it signed the agreement with ZESCO Limited (the Zambian state energy company) to cover the total power requirements of the Project for the 10-year period. In April 2007, the BVI company entered into forward contracts for 9,020 tons of nickel over the period from June 2009 to December 2013.