Author Topic: ORC.B - Orca Exploration Group  (Read 28056 times)

Mitch07

  • Newbie
  • *
  • Posts: 28
Re: ORC.B - Orca Exploration Group
« Reply #50 on: October 08, 2019, 06:47:58 AM »
For those interested presentation by Andy Hanna Managing Director at Pan African Energy at last weeks Tanzania Oil and Gas conference.

https://www.youtube.com/watch?v=CS_bZ6-O-Jk

Starts at approximately 52 minutes in


Mitch07

  • Newbie
  • *
  • Posts: 28
Re: ORC.B - Orca Exploration Group
« Reply #51 on: November 19, 2019, 08:25:11 AM »
3rd quarter had good results which were expected. Nothing shocking though nothing to reverse the trend in the share price.

Swala also released an update relating to discussions with Orca/RBC which seems nothing has progressed there.
The main issue is the price though at $6, $8.25 looks good right now. They continue to mention that they have 50% interest from class B shareholders on the deal.

http://swalaoilandgas.com/documents/Update-on-Operations-and-Discussions-with-Orca.pdf


Mitch07

  • Newbie
  • *
  • Posts: 28
Re: ORC.B - Orca Exploration Group
« Reply #52 on: December 20, 2019, 10:10:27 AM »
Swala finally released their 2018 YE. http://swalaoilandgas.com/documents/2018-full-year-audited-accounts.pdf

Odd they put the blame on PAET for the reason main reasons for the delay. http://swalaoilandgas.com/documents/Release-of-2018-Audited-Accounts.pdf

manuelbean

  • Jr. Member
  • **
  • Posts: 62
Re: ORC.B - Orca Exploration Group
« Reply #53 on: January 14, 2020, 10:39:22 AM »
The news release (available here: https://web.tmxmoney.com/article.php?newsid=6596107907223711&qm_symbol=ORC.B) implies there are negotiations for license renewal, as capex would be required to develop Songo-Songo North. From my understanding, such a capex outlay would be out of question if the license is not renewed.

After the successful NCIB (which went much better than expected according to management), a massive SIB looks warranted here. Management understands capital allocation very well in my opinion: so wait and see!

Hi Sergio, thanks for bringing this one to our attention. I am just starting my research on Orca and I would like to clear one quick and minor doubt. You say that management understands capital allocation, but until a fellow investor opened their eyes to the dangers of putting their money in short term bonds they thought it was the right thing to do. The same investor lectured them about the benefits of buying back their own shares and they agreed it was the best thing to do. I like to see that the management team recognizes that they were wrong while shifting their capital allocation strategy, but they needed an outsider to tell them what to do with the cash. Isn't this a bit of an amateur behaviour?

Thank you all for the great insights. Orca was profiled recently on the"SumZero picks for 2020". Let's hope that brings some more visibility to the company.

writser

  • Hero Member
  • *****
  • Posts: 2189
Re: ORC.B - Orca Exploration Group
« Reply #54 on: January 24, 2020, 06:34:20 AM »
Orca Exploration Group Inc. Announces Authorization of Substantial Issuer Bid, Provides Outcome of Strategic Review Process and Announces Focused Strategy to Grow Integrated Gas Business in Africa.

(https://finance.yahoo.com/news/orca-exploration-group-inc-announces-133010013.html)

Quote
The Company announced today that the Board of Directors has authorized management to finalize the terms and conditions for a substantial issuer bid of up to CDN$50 million pursuant to which the Company will offer to purchase a portion of its Class B Shares (the “Offer”). The Company anticipates that the Offer will commence during the next two weeks and will be completed before the end of the first quarter of 2020. The Company intends to fund the Offer from current cash resources.
I'm sorry if I have offended you. Please contact this forum's safe space coordinator to work things out.

@thewritser

Foreign Tuffett

  • Hero Member
  • *****
  • Posts: 1298
Re: ORC.B - Orca Exploration Group
« Reply #55 on: January 24, 2020, 07:45:22 AM »
This isn't tax advice, but Canada's punitive treatment of tender proceeds for non-Canadians may apply here.


https://www.cornerofberkshireandfairfax.ca/forum/strategies/taxation-of-tender-offers-in-canada/


Former Teldar Paper Vice President

writser

  • Hero Member
  • *****
  • Posts: 2189
Re: ORC.B - Orca Exploration Group
« Reply #56 on: January 24, 2020, 08:01:17 AM »
This isn't tax advice, but Canada's punitive treatment of tender proceeds for non-Canadians may apply here.


https://www.cornerofberkshireandfairfax.ca/forum/strategies/taxation-of-tender-offers-in-canada/

Yes, good point. As far as I can see the paid-up capital is about $2.50 / B - share.
I'm sorry if I have offended you. Please contact this forum's safe space coordinator to work things out.

@thewritser

YVRtrader

  • Newbie
  • *
  • Posts: 6
Re: ORC.B - Orca Exploration Group
« Reply #57 on: January 24, 2020, 10:21:47 AM »
Anyone care to guess what the SIB price range (dutch-auction) will be?

If 50% of the shareholders are truly in favor of selling to Swala for $8.25, it would stand to reason that they can successfully complete the large SIB at that price, or lower.  On the other hand, rejecting a bid at $8.25, then offering to buyout shareholders for substantially less would be very interesting.  $50M is a very large SIB (more than 20%). 

From a trading perspective, I would expect something like $7.25-$8.25 with a final price at the lower end of the range and 75%-85% pro-ration.  If there's a larger shareholder that I'm unaware of, who wants out, that tends to throw a wrench in things.


Sergio8

  • Jr. Member
  • **
  • Posts: 53
Re: ORC.B - Orca Exploration Group
« Reply #58 on: January 24, 2020, 11:39:09 AM »
Please note that this is a holdco headquartered in Tortola, BVI, so the tax may not be applicable here. Please note that I am not a tax advisor and I don't plan to tender my shares anyway.

I think they can complete their bid at 7.5 CAD, and I wouldn't set the price higher if I was them.

Maple Fun

  • Jr. Member
  • **
  • Posts: 63
Re: ORC.B - Orca Exploration Group
« Reply #59 on: January 24, 2020, 01:46:09 PM »
Please note that this is a holdco headquartered in Tortola, BVI, so the tax may not be applicable here. Please note that I am not a tax advisor and I don't plan to tender my shares anyway.

I think they can complete their bid at 7.5 CAD, and I wouldn't set the price higher if I was them.

I guess we have to wait for the proxy to know the tax implications.

Having said that, I tend to agree with you that this is not a Canadian company. i double-checked some of their dividend announcements and they didn't mention "eligible dividends".