Archive for June, 2015

Orca Exploration Group receives approval of IFC financing

Thursday, June 18th, 2015

Orca Exploration Group Inc. announced that it has received World Bank board approval of the International Finance Corporation financing, and decided to proceed with the first phase of the Songo Songo development programme. World Bank’s approval is for an investment by IFC of up to US$60mln in PanAfrican Energy Tanzania Limited, the operating subsidiary of the BVI company. The operations are planned to start by September 2015.

The IFC investment is a subordinated, income participating loan with flexible terms of repayment and maximum tenor of approximately 10 years. Completion of the investment is subject to final agreement of specific terms, including satisfaction by IFC of the sustained payment performance of the Tanzania state utility, TANESCO, in respect of ongoing gas deliveries by the Company.

Following the approval of the IFC financing, the Company entered into a drilling contract with Paragon Offshore plc, in order to execute the offshore phase of the development programme for the Songo Songo gas field.