01:01 PM EDT, 07/29/2024 (MT Newswires) -- Orca Energy Group (ORC-B.V) was last seen down 15% after the company on Monday said its PanAfrican Energy Tanzania (PAET) unit failed to reach a commercial resolution of the natural-gas sales contract negotiations and license extension with state-owned Tanzania Petroleum Development Corporation (TPDC).

The dispute concerns the extension of the Songo Songo Development License, which has been pending for more than a year and PAET's right to develop and sell gas at the end of this month. TPDC had assigned power-producer Songas the right to explore for, and develop the gas from certain blocks, in late 2001.

The agreement with the Tanzanian government, Songas and PAET, stipulated that all gas produced from the Songo Songo field after July 31 would be PAET's to develop and sell (jointly with TPDC) on commercial terms. However, this date has been unilaterally extended by the Tanzanian government to October 10, 2026.

In light of this, Orca is lowering its forecast average additional gas sales for 2024 from the range of 80 to 90 million cubic feet per day to 70-80 MMcfd for the full year. This revised forecast assumes the Protected Gas regime ends on July 31, 2024 and all gas from August 1, 2024 is additional gas.

Orca's Class B shares were last seen down $0.61 to $3.33 on the TSX Venture Exchange, a 52-week low.

Price: 3.33, Change: -0.61, Percent Change: -15.48