Wentworth Resources projects it will make $20 million for first full year and $140 million over first 5 years of production net of operating and on-going development costs according to the October 2014 presentation.<\/p>\n
This is per Mnazi Bay Gas Sales Agreement terms where the initial volumes are expected to reach up to 80 mmscf\/d from 4 existing wells with volumes increasing\u00a0 to 130 mmscf\/d with the development of 3 development wells 8 months after delivery starts.<\/p>\n
As per the agreement covering a 17 year term the gas price is set at $3.00 per mmbtu (US$3.07 per mcf) with no pipeline tariffs or third party processing fees.<\/p>\n
The agreement includes payment guarantees as price escalates at US CPI even as delivery of gas is expected to start between 22 January and 22 April, 2015.<\/p>\n
Wentworth estimates the net cost of field infrastructure US$6.7 mm to tie in wells as well as Install separation facilities.<\/p>\n
The Tanzanian government is on currently constructing a 36\u201d pipeline from Mnazi Bay to Dar es Salaam which Includes 210 mmscf\/d gas processing facility at Madimba (in Mnazi Bay concession).<\/p>\n
The projects which also include a pipeline with 750 mmscf\/d capacity have been financed by China Exim Bank and been constructed by CNPC.<\/p>\n
The company also says a portion of 667 Bscf P50 Contingent Resources (213 Bscf Wentworth\u2019s share)1 to be re-classified as reserves.<\/p>\n
Initial primary markets for gas expected to be power generation and industrial use.<\/p>\n
Wentworth holds 31.94% in the production stage down from 39.925% \u00a0while the operator and \u00a0Mnazi Bay Partner Maurel et Prom holds 48.06% down from 60.075% after the Tanzania Petroleum Development Corporation backed in to take 20% of production interests.<\/p>\n","protected":false},"excerpt":{"rendered":"