Orca Shareholders Approve Sale of Tanzanian Gas Unit

Orca Energy Group shareholders voted to approve the sale of more than half the company's business, clearing the way for the disposal of its Tanzanian natural gas operations to Taifa Gas Tanzania and Amber Energy Investment. The company also said a management cease trade order issued by Alberta securities regulators in May has been lifted.

The vote took place at the company's annual and special meeting June 17. The resolution covered the sale of all shares in PAE PanAfrican Energy, Orca's wholly owned Mauritian holding subsidiary that controls the Tanzanian gas assets. More than a simple majority of votes cast supported the transaction, the company said.

The MCTO was issued May 1 by the Alberta Securities Commission under National Policy 12-203, covering executives Jay Lyons and Lisa Mitchell. Orca said it rectified the filing defaults that triggered the order on June 5, and the MCTO expired June 10.

Shareholders also fixed the board at five members and elected all five nominees: David Lyons, Lisa Mitchell, John Doe, Jane Smith, and Robert Brown. The company trades on the TSX Venture Exchange under symbols ORC.A and ORC.B.

The sale approval means Orca will hand over the bulk of its operations. The buyers are Taifa Gas Tanzania, a Tanzanian energy firm, and Amber Energy Investment. Orca did not disclose the deal's financial terms in the release. The company now faces the process of closing the transaction and determining the use of proceeds.