BVI-registered Orca Exploration Group Inc. reported its financial results for the quarter ended 30 June 2012. In this quarter, company’s operating revenue was US$16.9 million, compared to US$8.3 million in the second quarter of 2011. Working capital decreased by 16% to US$38.7 million, from
US$56.0 million as at the first quarter period, ended 31 December 2011. This was a consequence of significant capital expenditure on drilling operations. Funds from operations before working capital changes remained unchanged over Q1 at US$9.9 milliion ($0.28 per share), as compared to US$3.3 million, (US$0.09 per share) in Q2 2011.
During Q2 2012, the BVI company continued to produce at maximum capacity, delivering Additional Gas sales volumes of 54.9 MMcfd (52.9 MMcfd Q1 2012).
In the second quarter of 2012 Orca Exploration agreed on a number of major points with the Government Negotiation Team of Tanzania, to resolve the issues raised in 2011. With rapidly deteriorating hydro power supply in Tanzania, the Ministry of Energy and Minerals of the country issued an order to the BVI company to redirect all gas volumes to the state electric utility TANESCO until 31 December 2012, to aid in emergency power generation. Now the company is in active discussions to assess the implications of complying with this order.
CEO and Chairman of Orca Exploration Group noted in his letter to shareholders that 2012 has become a pivotal year for the power sector in Tanzania and the BVI company, with solid accomplishments and very serious challenges.