Page 17 - AfrOil Week 21 2020

AfrOil
NEWS IN BRIEF
AfrOil
SERVICES
PGS releases new multi-
azimuth GeoStreamer 3D
for Cote d’Ivoire
This new 900 square km multi-azimuth broad- band seismic survey from PGS provides increased resolution and sharper imaging of prolific Upper Cretaceous plays in Côte d’Ivoire Block CI-706.
Recently completed final depth processing has improved illumination of the block, adding a second azimuth to existing GeoStreamer data. The latest north-south acquisition, which covers the majority of the block, was processed with the underlying east-west-acquired data. The com- bined azimuths benefit from the GeoStreamer broadband frequency bandwidth and a compre- hensive depth imaging flow.
The combination of two data azimuths has resulted in increased resolution of complex faulting in the syn-transform section, to enable a greater understanding of the distribution of Albian sandstone targets hosted in tilted fault blocks. The imaging of the prolific Upper Creta- ceous play is also improved, with a clearer delin- eation of turbidite channel and fan complexes. Heightened imaging of the geomorphology of stratigraphic pinch-out traps can also reduce the risks associated with hydrocarbon migration and trap integrity.
A further 7,000 square km of GeoStreamer broadband data will be available in July 2020. PGS, May 24 2020
PERFORMANCE
Orca Exploration Group
announces completion of
Q1-2020 interim filings
Orca Exploration Group announces that it has filed its condensed consolidated interim finan- cial statements and management’s discussion and analysis for the three month period ended March 31, 2020, with the Canadian securities regulatory authorities. All amounts are in United States dollars unless otherwise stated.
Revenue for Q1-2020 decreased by 11% to $17.7mn compared to the same prior year period. The decrease is primarily a result of decreased sales to the Tanzanian Electric Supply Company (TANESCO) under the Portfolio Gas Supply Agreement and a smaller current income tax adjustment due to lower revenues. Gas deliv- eries for the quarter decreased by 8% compared
to the same prior year period. The decrease in gross sales volume was primarily due to the increase in hydropower generated due to higher than normal rainfall during the past six months which decreased sales of natural gas to TANE- SCO and Songas. This was partially offset by an increase in sales to Tanzanian Petroleum Devel- opment Corp. (TPDC) through the National Natural Gas Infrastructure (NNGI).
Net income attributable to shareholders increased 356% to $12.6mn for Q1-2020 over the comparable prior year period. The increase is primarily due to the increase in finance income related to the collection of $10.1mn of TANES- CO’s long-term arrears.
Net cash flows from operating activities for Q1-2020 decreased by 94% to $0.8mn from $13.2mn in Q1-2019. The decrease is primarily a result of the payment of the current portion of the additional profits tax liability of $11.9mn to the Government of Tanzania.
Adjusted funds flow from operations for Q1-2020 decreased by 16% to $7.6mn compared to the same prior year period. The decrease was primarily related to a large receivable from TPDC as at March 31, 2020, a majority of which was settled subsequent to the end of Q1-2020.
Capital expenditures decreased by 55% to $0.5mn for Q1-2020 compared to $1.1mn for Q1-2019. The capital expenditures in Q1-2020 primarily relate to the flowline decoupling construction.
The capital expenditures in Q1-2019 primar- ily relate to the refrigeration project for the Son- gas Infrastructure.
As at March 31, 2020, the Company is in a stable financial position with $82.9mn in work- ing capital (December 31, 2019: $107.0mn), cash and short-term investments of $98.1mn (December 31, 2019: $138.7mn) and long-term
debt of $54.1mn (December 31, 2019: $54.1mn). The decrease in working capital and cash and short-term investments was primarily related to the substantial issuer bid (SIB) completed in March 2020.
As at March 31, 2020 the current receivable from TANESCO was zero (compared to zero as at December 31, 2019). TANESCO’s long- term trade receivable as at March 31, 2020, was $37.3mn with a provision of $37.3mn compared to $47.5mn (provision of $47.5mn) as at Decem- ber 31, 2019. Subsequent to March 31, 2020, the Company has invoiced TANESCO $1.6mn for April 2020 gas deliveries and TANESCO has paid the Company $6.2mn.
On February 25, 2020 the Company declared a dividend of CDN$0.06 per share on each of its Class A common voting shares and Class B sub- ordinate voting shares for a total of $1.2mn to the holders of record as of March 31, 2020, which was paid on April 30, 2020.
On March 12, 2020, the Company announced the final results of the SIB where it took up and paid for 7,692,297 Class B Shares at CDN$6.50 per Class B Share. The aggregate purchase of Class B Shares totaled CDN$50.0mn, represent- ing 23.6% of the Company’s issued and outstand- ing Class B Shares and 22.4% of the total number of the Company’s issued and outstanding shares.
On April 7, 2020, the Company announced its intention to amend the normal course issuer bid (NCIB) for purchase of its Class B Shares ini- tiated in June 2019. Additional purchases made pursuant to the NCIB will not exceed 700,000 Class B Shares (subject to a maximum aggregate purchase limit of CDN$3.9mn representing not more than 5% of the issued and outstanding Class B Shares as at June 14, 2019 (33,505,915 Class B Shares) less 933,028 Class B Shares already purchased under the NCIB.
Week 21 27•May•2020
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