Last updated on April 18, 2014 at 9:47 EDT

Orca Exploration and PanAfrican Energy Tanzania report positive discussions with Tanzania Government Negotiating Team

July 12, 2012


TORTOLA, British Virgin Islands, July 12, 2012 /CNW/ – Orca Exploration
Group Inc. (“Orca” or “the Company”) and its operating subsidiary
PanAfrican Energy Tanzania Limited (“PAT” or “PanAfrican”) jointly
announce their commitment to successfully conclude ongoing discussions
with the Tanzania Government Negotiating Team.

W. David Lyons, Orca’s Chairman and CEO met with Mr. Eliakim Maswi,
Permanent Secretary of the Ministry of Energy and Minerals of the
Republic of Tanzania, in Dar es Salaam 9(th) July 2012.  The meeting was held to review discussions between the
Government Negotiating Team and PanAfrican Energy Tanzania Limited on a
number of monetary issues and proposed amendments to the Company’s
Songo Songo Production Sharing Agreement signed in 2001.

“We had a warm, very frank and positive exchange of views and ideas on
the remaining issues to be resolved.  Both Orca Exploration and
PanAfrican Energy are fully committed to see talks continue to a
successful conclusion,” said David Lyons.  “Our companies are looking
forward to meeting again on 16(th) July 2012 in Arusha with Mr. Maswi.”

“As the first commercial developer of Tanzania’s natural gas resources
PanAfrican Energy has been involved in developing Tanzania’s gas
resources for almost 20 years. On a broader basis we are also available
to play a very supportive role to the Tanzania Petroleum Development
Corporation (“TDPC”) as it works to implement a very large gas
infrastructure program to better meet Tanzania’s urgent power and
energy needs,” said Mr. Lyons.

Orca Exploration Group Inc. is an international public company engaged
in natural gas exploration, development and supply in Tanzania through
the wholly-owned subsidiary PanAfrican Energy Tanzania Limited, as well
as oil and gas appraisal in Italy. Orca trades on the TSXV under the
trading symbols ORC.B and ORC.A.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements

This press release contains forward-looking statements. More
particularly, this press release contains statements concerning, but
not limited to, ongoing discussions with the Tanzania Government
Negotiating Team; timing of future discussions with the Tanzania
Government Negotiating Team; and Orca’s support of the Tanzania
Petroleum Development Corporation. Although management believes that
the expectations reflected in the forward-looking statements are
reasonable, it cannot guarantee future results, levels of activity,
performance or achievement since such expectations are inherently
subject to significant business, economic, operational, competitive,
political and social uncertainties and contingencies. Many factors
could cause Orca’s actual results to differ materially from those
expressed or implied in any forward-looking statements made by Orca.

These forward-looking statements involve substantial known and unknown
risks and uncertainties, certain of which are beyond Orca’s control,
including, but not limited to, the impact of general economic
conditions in the areas in which Orca operates; outcome of discussions
with the Tanzania Government Negotiating Team; civil unrest; industry
conditions; changes in laws and regulations including the adoption of
new environmental laws and regulations and changes in how they are
interpreted and enforced; increased competition; foreign exchange or
interest rates; stock market volatility; competition for, among other
things, capital, drilling equipment and skilled personnel;  failure to
obtain required equipment for drilling; delays in drilling plans;
changes in laws; the production and growth potential of the Company’s
assets; obtaining required approvals of regulatory authorities; risks
associated with negotiating with foreign governments; ability to access
sufficient capital; and risk that the Company will not be able to
fulfill its obligations. In addition there are risks and uncertainties
associated with oil and gas operations, therefore Orca’s actual
results, performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking estimates and,
accordingly, no assurances can be given that any of the events
anticipated by the forward-looking estimates will transpire or occur,
or if any of them do so, what benefits that Orca will derive therefrom.

Such forward-looking statements are based on certain assumptions made by
Orca in light of its experience and perception of historical trends,
current conditions and expected future developments, as well as other
factors Orca believes are appropriate in the circumstances, including,
but are not limited to, the ability of Orca to add production at a
consistent rate; infrastructure capacity; commodity prices will not
deteriorate significantly; the ability of Orca to obtain equipment in a
timely manner to carry out exploration, development and exploitation
activities; future capital expenditures; availability of skilled
labour; timing and amount of capital expenditures; uninterrupted access
to infrastructure; the impact of increasing competition; conditions in
general economic and financial markets; effects of regulation by
governmental agencies; that the Company will have sufficient cash flow,
debt or equity sources or other financial resources required to fund
its capital and operating expenditures and requirements as needed;
current or, where applicable, proposed industry conditions, laws and
regulations will continue in effect or as anticipated as described
herein; and other matters.

The forward-looking statements contained in this press release are made
as of the date hereof and Orca undertakes no obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.

SOURCE Orca Exploration Group Inc.

Source: PR Newswire