Orca Energy's Tanzania Gas Update
Orca Energy Group Completes Q1 2026 Interim Filings, Tanzania Gas Production Fully Transitions
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Orca Energy Group Inc. has filed its Q1 2026 interim financial statements, marking a return to full regulatory compliance after a turbulent stretch. The filing comes just one week after Orca posted its delayed 2025 annual results, which showed a 22% drop in annual revenue, according to Markets Insider.
The company is in the final chapter of its 25-year run in Tanzania. It agreed in April to sell its entire Tanzanian business for a nominal price of just $10, and it is pursuing a $1.2 billion arbitration claim against the Tanzanian government, according to Financial Post.
How a $10 Sale Ends a 25-Year Gas Business
On April 13, 2026, Orca signed a deal to hand over its Tanzanian subsidiary, PanAfrican Energy Tanzania (PAET), to local buyers Taifa Gas and Amber Energy for $10. The sale price is essentially nothing. Taifa Gas will take a 49% stake, while Amber Energy will hold 51%, according to National Post.
Orca Chairman David Ross said the "time is now right for an orderly transition" given the high risks of staying. Songo Songo produces roughly 54% of Tanzania's daily gas output. Any disruption during the handover could affect the country's national power supply, according to National Post.
The $1.2 Billion Dispute That Drove Orca Out
The real story behind the $10 exit is a bitter legal fight. In August 2024, Orca filed for international arbitration, claiming more than $1.2 billion in damages. That figure is roughly 17 times the company's current market value. Orca alleges the Tanzanian government broke the terms of the Production Sharing Agreement (PSA) — the contract governing who gets what from the gas field — according to Financial Post.
The core complaint is about "Protected Gas," a low-price gas regime that was supposed to end on July 31, 2024. After that date, all gas was meant to be sold at full market prices as "Additional Gas." Orca says the government kept forcing the old low-price rules, gutting the project's commercial value, according to National Post.
Q1 Revenue Up 12%, But the Money Is Effectively Trapped
Despite the chaos, Orca's Q1 2026 numbers are not all bad. Revenue rose by $3.0 million, a 12% jump year-over-year, driven by higher demand from Tanzania's power sector. Additional Gas volumes climbed by 7.7 million cubic feet per day (MMcfd), an 11% increase versus Q1 2025, according to Financial Post.
But analysts see limited value in those gains. Analyst Bill Newman kept a "Hold" rating on Orca, calling the divestment a "de-risking event" that turns Orca into a "capital return story" with "limited remaining upside." Net cash from operations fell by $21.2 million in Q1 2026, largely due to heavy tax payments tied to 2025 profits, according to National Post.
Compliance Restored After Regulators Stepped In
The filing rush follows a serious regulatory warning. On May 1, 2026, the Alberta Securities Commission (ASC) issued a Management Cease Trade Order (MCTO) against Orca. The order blocked company executives from trading shares because Orca had missed the deadline to file its 2025 audited financial statements, according to Financial Post.
Orca filed its 2025 annual results on May 29, lifting the MCTO. The Q1 2026 interim filing on June 5 completes the catch-up. Capital spending in Q1 2026 was just $6,000, down from $548,000 in Q1 2025 — a stark sign of a company in wind-down mode, according to National Post.
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