Wentworth Resources Estimates $3.5m in Tanzania Monthly Gas Sales

Wentworth Resources says it estimates that monthly gas sales in Tanzania into new government owned pipeline Q3 2015 could reach an estimated $3.5m monthly.

Initially Mnazi Bay will be the only supplier of gas in Tanzania into new pipeline from 5 wells which will be producing in the field by Q3 2015 at initial volumes of 80 mmscf/d escalating to 130mmscf/d in 2016

Wentworth adds that the substantial cash flow generation is expected to commence in Q4 with the plan being to reinvest cash flows into Mnazi Bay and grow the business by maximizing production from existing discovered gas fields to meet the growing demand for gas in Tanzania and examining more drill exploration prospects.

Already the company has identified six exploration targets with 1.5 Tscf (614 Bscf Wentworth’s share) unrisked P50 Prospective Resources with all costs recoverable against existing and future production within the Concession

On the way forward Wentworth says it will continue to focus on East Africa onshore and near shore,  pursue acreage along pipeline route in Tanzania, evaluate Tembo-1 discovery Onshore Rovuma for potential appraisal and Expand operations in East Africa.

As per the 17 year term gas sales agreement with the government the government is responsible for transportation and processing costs and payment guarantees are nearing finalization.

As per the last independent evaluation of its gas reserves within the Mnazi Bay Concession in Tanzania, carried out by RPS Energy Canada Ltd the value of Wentworth Resources at Mnazi Bay is set at$152.9 million after tax. RPS Energy also placed the value of the entire field at 443Bscf (2P) equivalent to 73.8MMboe.

Wentworth holds a substantial 31.94 percent withholding interest in production equivalent to 141.5Bscf (2P) gross reserves.

In October 2014 Wentworth Resources estimated its projects in Tanzania would 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.

Wentworth holds 31.94% in the production stage down from 39.925%  while the operator and  Mnazi 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.

Author: OilNews

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