07:02 AM EDT, 04/05/2024 (MT Newswires) -- Orca Energy Group (ORC-A.V, ORC-B.V), at 52-week lows, overnight Thursday reported a fourth-quarter 2023 net loss of US$438,000, or a loss of US$0.02 per share, swinging down from a net income of US$2.3 million, or US$0.12 per share, in the year-ago quarter.

Fourth-quarter 2023 revenue fell 23% to US$24.4 million from US$31.9 million in the year-ago quarter. The company attributed the decrease to lower sales to the power sector and a lower current income tax adjustment.

Total gross conventional natural gas production, including fuel gas, was in line with revised forecasts and averaged 121.8 million cubic feet per day for the fourth quarter of 2023, of which 80.8 MMcf/d was additional gas.

Orca forecasts average additional gas sales for 2024 of between 80 and 90 MMcf/d.

"2023 was a challenging year for Orca, driven by considerable macroeconomic fluctuations and company specific uncertainties. Despite this, significant time and resources have been dedicated to planning for identified field development opportunities to support future production volumes," said CEO Jay Lyons.

He added: "The growing electricity demand in Tanzania has led to an increase in gas supply requirements. In response to this, we formally requested the Tanzania Petroleum Development Corporation to initiate the process of extending our development license in accordance with the terms of the Production Sharing Agreement. Extending the license will allow Orca to continue optimizing existing facilities, boost well and reservoir performance, and ensure a reliable and sustainable supply of natural gas within Tanzania's energy framework. During March 2024, a preliminary planning meeting was held with the Government Negotiating Committee to discuss the timing around negotiations. As we enter this critical period, I would like to emphasize the urgent need for all parties involved to engage in agreeing on a path forward to license extension.

"2024 remains a critical year for Orca. We are prepared to commence several near-term operational projects, but there are a number of outstanding commercial matters that need to be addressed, in addition to the relevant parties involved agreeing a path towards a license extension. The Board and Senior Management recognize the importance of reliable and sustainable domestic gas production in Tanzania, so achieving further commercial development in the near term is imperative to progressing our operational work programmes. We will keep all our stakeholders updated as the year continues, updating the market as appropriate."