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ORCA Orca Energy Group Inc. Announces Completion of Q3 2021 Interim Filings TORTOLA , British Virgin Islands , Nov. 17 , 2021 ( GLOBE NEWSWIRE ) -- Orca Energy Group Inc. ( " Orca " or the " Company " and includes its subsidiaries and affiliates ) ( TSX - V : ORC.A , ORC.B ) today announces that it has filed its condensed consolidated interim financial statements and management's discussion and analysis for the three and nine month periods ended September 30 , 2021 with the Canadian securities regulatory authorities . All amounts are in United States dollars ( " $ " ) unless otherwise stated . Jay Lyons , Chief Executive Officer , commented : " We are very pleased with Orca's performance to date in 2021. Our production and revenues remained strong during the period and we continue to hit the targets we have set for ourselves . Operationally , Orca remains on track with the installation of compression equipment , designed to ensure the Company can maintain production volumes at 102 MMcfd , with the potential to increase by a further 70 MMcfd . Additionally , the well remediation is in process and is expected to be completed in Q1 2022. With a tight control on costs , we maintain a strong balance sheet , enabling us to not only continue investing in the creation of further value from the world class Songo Songo gas field , but also making appropriate returns to our shareholders . On behalf of the Board , I would like to thank Blaine Karst for his significant contribution to the Company over the years . We wish him the very best for his retirement . We are very pleased to extend a warm welcome to Lisa Mitchell as our new CFO . Lisa brings a wealth of experience in senior finance and leadership roles within the African energy sector . We will keep our stakeholders appraised of our progress as we move forward in the last quarter of 2021. " Highlights • Revenue increased by 7 % for Q3 2021 and by 9 % for the nine months ended September 30 , 2021 compared to the same prior year periods . The increase for Q3 2021 was primarily a result of the increased sales to the power sector . The increase for the nine months ended September 30 , 2021 was a result of the increased sales to both the industrial sector and power sector . Gas deliveries increased by 6 % for Q3 2021 and by 3 % for the nine months ended September 30 , 2021 compared to the same prior year periods . The Q3 2021 increase is due to the 11 % increase in gas deliveries to the power sector being partially offset by the decrease of 13 % in gas deliveries to the industrial sector as a result of an increase in downtime due to unplanned maintenance at a cement plant . The increase for the nine months ended September 30 , 2021 reflects the increase in gas deliveries of 4 % to the power sector . • Net income attributable to shareholders increased by 412 % for Q3 2021 and decreased by 27 % for the nine months ended September 30 , 2021 compared to the same prior year periods . The increase for Q3 2021 was a combination of the increase in revenue , a decrease in general and administrative expenses and a reversal of loss allowances for receivables in Q3 2021 compared to a loss allowance for receivables in Q3 2020 as a result of the Company fully providing for a receivable from the Tanzanian Revenue Authority ( " TRA " ) who issued an Agency Notice for $ 5.3 million obligating the commercial bank of PanAfrican Energy Tanzania Limited's ( " PAET " ) , the Company's subsidiary operating in Tanzania , to release funds in favour of the TRA . The decrease for the nine months ended September 30 , 2021 compared to the same prior year period is primarily related to the decrease in the reversal of loss allowances related to the lower collection of arrears from the Tanzanian Electric Supply Company Limited ( " TANESCO " ) despite higher revenue . • Net cash flows from operating activities for Q3 2021 increased by 63 % and decreased by 1 % for the nine months ended September 30 , 2021 compared to the same prior year periods primarily reflecting the changes in net income and non- cash working capital . Adjusted funds flow from operations increased by 4 % for Q3 2021 and by 20 % for the nine months ended September 30 , 2021 compared to the same prior year periods . The increases were primarily a result of the increase in revenue and the reduction in general and administrative expenses . Capital expenditures decreased by 61 % for Q3 2021 and increased by 29 % for the nine months ended September 30 , 2021 compared to the same prior year periods . The capital expenditures in 2021 primarily relate to the installation of compression facilities and the commencement of the well workover program for the SS - 3 , SS - 4 and SS - 10 wells . The capital expenditures in 2020 primarily related to the flowline decoupling project and the compression project . The Company is installing inlet compression to allow production volumes to be sustained at approximately 102 million standard cubic feet per day ( " MMcfd " ) in the near term ( 3-5 years ) , through the Songas Limited ( “ Songas ” ) infrastructure . The workover program is scheduled to be completed in Q1 2022 at a gross cost of $ 21.4 million of which $ 3.9 million has been incurred to date . The rig is currently on site and under preparation to commence the workover on well SS - 3 . Subject to demand volumes and associated natural reservoir pressure declines , the workovers and