Orca Energy Group Inc. Announces Discontinuance of Swala Tanzanian Court Proceedings

On February 27, 2026, Orca Energy Group Inc. announced a significant legal development regarding its ongoing litigation with Swala Oil and Gas (Tanzania) plc. In a concerted effort to resolve tensions, Orca, along with its subsidiaries PAE Pan African Energy Corporation and PanAfrican Energy Tanzania Limited, has entered into an agreement to discontinue the court proceedings filed by Swala against Orca in Tanzania's High Court (Case No. 11561 of 2025). This marks a notable step towards amicable resolutions within the often turbulent landscape of industry litigation.

Additionally, the Orca Group's anti-suit injunction against Swala, which was submitted to the High Court of England and Wales Commercial Court on October 24, 2025, will also be stayed, as stipulated in the new agreement. Instead of pursuing further litigation in national courts, both parties have opted to refer any disputes to confidential arbitration, following the Arbitration Rules of the London Court of International Arbitration, with arbitration taking place in London.

Orca Energy Group Inc. operates primarily in the natural gas sector in Tanzania through its subsidiary PanAfrican Energy Tanzania Limited. The resolution of these legal challenges could pave the way for enhanced operational focus and stability for Orca, which is listed on the TSX Venture Exchange under the symbols ORC.A and ORC.B.

Investors and stakeholders may view this development positively as it alleviates legal uncertainties that could impact Orca's operations and future growth prospects in the competitive energy landscape. For further information, Orca's executive team, led by CEO Jay Lyons and CFO Lisa Mitchell, remains available for inquiries, emphasizing the company's commitment to transparent communication with its investors.

Orca Energy Group Inc. has recently announced a significant legal development that could impact its operational stability and investor sentiment. The discontinuance of legal proceedings with Swala Oil and Gas is a positive sign for Orca, indicating a resolution that alleviates uncertainty in their business environment. Investors should view this news through a few lenses: legal clarity, operational focus, and market dynamics.

Firstly, resolving the legal disputes with Swala clears a path for Orca to focus on its core business of natural gas development in Tanzania, which could enhance operational efficiency. This move allows the company to redirect resources—both financial and human—toward productive initiatives rather than legal defenses.

Financially, while legal proceedings can be expensive and distracting, their resolution can lead to improved profitability potential. Investors might see this as a signal of reduced risk, which can support share price stability or appreciation in the medium to long term, especially since Orca trades on the TSX Venture Exchange.

Furthermore, the agreement to refer disputes to arbitration suggests a controlled approach to conflict resolution, likely signaling to the market that Orca is serious about maintaining relationships while protecting its interests. The potential for expedited resolutions during arbitration could enhance investor confidence.

With the natural gas market showing signs of volatility but potential growth, particularly in emerging markets like Tanzania, Orca stands to benefit from a favorable operational landscape. Investors looking for exposure in this segment should consider Orca’s strategic positioning with its reliable supply of resources.

In conclusion, while the operational and financial outlook appears more favorable following the discontinuance of court proceedings, investors should remain vigilant about market dynamics and inflationary factors that could impact the energy sector. Overall, Orca's recent developments offer a compelling case for investors seeking stability and growth potential in the energy market.