Monthly Archives: April 2012

Orca Exploration announced results for the year ended 31 December 2011

Orca Exploration Group Inc., an international public company registered in the British Virgin Islands, announced the financial results for the year ended 31 December 2011. For this period, the company reported 27% increase of proven reserves, and 22% increase of probable reserves. Also, the sales of Additional Gas increased by 30%, which resulted in operating revenue of US$46.4 million. Working capital increased by 7%, from US$52.4 million to US$56.0 million. Funds from operations before working capital changes increased by 9%.

In 2011, Orca Exploration’s revenues were US$45.9 million – an increase by 18% as compared to US$38.8 million in 2010. The 2011 revenue increase was limited by the fact that brought forward costs had been recovered in the first half of 2011. This reduced the percentage of net revenue. BVI company’s total cost recovery share will rise in 2012 as the funds were invested by Orca in the current drilling programme.

The company finished the year with cash of US$34.7 million and no debt. The revenue growth was fuelled by Additional Gas sales in 2011 which were made possible by an infrastructure system re-rating.

CIC Energy Reported Financial Results for the First Quarter 2012

CIC Energy Corp., the BVI company listed on the Toronto Stock Exchange and the Botswana Stock Exchange, reported financial results for the first quarter 2012 – the three month period ended February 29, 2012. The BVI company reported net loss of US$1,606,593 or US$0.03 per share (basic and diluted) for the same period last year. The first quarter of 2012 was BVI company’s first reporting period under International Financial Reporting Standards.

Capitalized project costs are US$165,601,367 , with capitalized project costs for the quarter ended February 29, 2012 totaling US$779,162. CIC Energy has a current treasury of approximately CDN$17.3 million and has 58,012,127 shares outstanding and 75,958,575 shares fully diluted including 13,061,448 warrants which have not vested.

BVI company announces issue of Loan Notes

BVI-registered company Xcite Energy has issued US$50 million of unsecured Loan Notes to a fund managed by West Face Capital Inc., a Canada-based investment management firm. The Loan Notes have an initial term of 360 days and, subject to West Face approval, may be extended by XEL for a further 360 days. The Notes bear interest at 14% per annum payable on 31 March, 30 June, 30 September and 31 December in each relevant year and at maturity.

West Face is entitled to receive maintenance fee equal to 1 per cent of the outstanding principal amount of the Loan Notes 180 days from issue date and at maturity. The company has paid a US$1 million fee to a third party in connection with the transaction.

The funds raised by the issue of these Loan Notes strengthen the company’s balance sheet and provide additional contingency funding during the important Phase 1A work programme on the Bentley field. The funds will be used for the Company’s working capital requirements and general corporate purposes.

BVI company announces strategic partner’s investment

BVI-registered CIC Energy Corp. has completed private placement with Vitol Energy (Bermuda) Ltd., which is a member of the Vitol Group of companies, for a total price of 5,263,158 common shares at a price of CDN$1.90 each, for gross proceeds of CDN$10 million. This price reflects a 44% premium to the closing price of CIC Energy’s common shares on March 26, 2012.

Following completion of the private placement, Vitol holds 9.1% of the issued common shares of the BVI company.

Additionally, agreement has also been entered into whereby CIC Energy Corp. will use Vitol’s extensive coal marketing expertise. The terms of this agreement give the Vitol Group the right to market 60% of any future export coal from the Mmamabula Coal Field in Botswana.

The Vitol Group is the largest independent energy trader in the world, having six regional centres and 23 additional offices in different countries, working in the business of extracting, buying, selling, transporting and shipping products such as coal, gasoline, diesel, LPG, LNG, fuel oil and biofuels. In January 2012, the Vitol Group acquired 35% interest in the company which holds the concession for the de Carvão da Matola Terminal from Grindrod Limited, the Johannesburg Stock Exchange listed logistics company.

Greg Kinross, President of CIC Energy, said in his comments to this deal: “This financing strengthens our ability to continue development of our key projects well into the future… Furthermore, Vitol’s ownership interest in the Matola Coal Terminal in Mozambique and their experience in trading and logistics is strategically attractive to us, especially given the positive developments we are seeing in South Africa by Transnet to increase export rail capacity from the Waterberg coal field, which is contiguous with and adjoins the Mmamabula Coal Field on the Botswana side of the border. This could provide CIC Energy with the opportunity to export coal sooner than we had anticipated.”