Tanzania Revenues Improving, Says Wentworth
Wentworth Resources reported November 14 an improvement in earnings from Mnazi Bay in southern Tanzania, its sole producing asset.
The Alberta-based, AIM and Oslo-listed firm made a net profit of $0.7mn and net loss of $0.95mn for 3Q and 9M 2017 periods respectively compared to losses respectively of $3.59mn and $4.67mn in 2016. Its Tanzania gas sales revenue was $4.1m in 3Q, compared to $2.15mn 2Q 2017 and $2.38mn in 3Q2016. In 9M2017 it was $9.2mn, only slightly higher than the year-before $9.02mn.
Mnazi Bay field gross daily production averaged 60mn ft3/d in 3Q2017 and 45mn ft3/d year to date. Full year 2017 production forecast remains estimated at 40 to 50 mn ft3/d. Production shares in the field are: operator Maurel & Prom 48.06%, Wentworth 31.94% and Tanzanian state TPDC 20%. Wentworth said it continues to receive payment for its gas between four and five months in arrears from the main purchaser of Mnazi Bay gas (state buyer Tanesco).
Wentworth managing director Geoff Bury said that near-term the company is able “to take full advantage of increasing gas demand in Tanzania from the electrical power generation and industrial demand and reduced gas volumes supplied into the transnational pipeline by peers.”
“There is near-term incremental gas demand expected from the start of the commissioning of the newly constructed, government owned, Kinyerezi-2 power station and commencement of gas fired power generation at the Dangote Cement plant. The combined gas demand is expected to initially require 10-12mn ft3/d gas, at the time of start-up in the next two to four months,” said Bury. That could increase to 60mn ft3/d when such facilities are fully operational, expected 2H2018, he added.
Further south, onshore northern Mozambique, Wentworth said it continues to seek an industry partner to participate in the appraisal programme at its Rovuma onshore block (where Tembo-1 was drilled 2014) in advance of drilling an appraisal well in 2018.
Separately Solo Oil said November 14 it has secured an up to $5mn loan facility from RiverFort. Solo is junior partner of fellow UK-based Tanzania gas producer Aminex which has had production difficulties. Solo said an initial $1.5mn drawn on the loan would be used for expenses on Aminex's Ntorya-2 exploration well and flow testing in Tanzania, among other things.
Mark Smedley