Wentworth Resources has announced that the Company has subsequently drawn an amount of $5.6 million on an existing $20 million credit facility with a Tanzania-based bank, TIB Development Bank Limited.
The credit facility relates to the Mnazi Bay Concession development and operating costs that were incurred and paid for by the Company prior to executing the Facility in December 2014 and will be used for working capital purposes and significantly improves the Company’s short-term liquidity.
Wentworth says it expects the remaining amount of the Facility to be sufficient to meet ongoing Mnazi Bay Concession development capital activities which includes: drilling of the MB-4 development well and construction of field infrastructure tying in our existing gas fields to the government-owned pipeline infrastructure that are planned for the first half of 2015.
During the second half of 2015, Wentworth’s share of the cost of development capital activities are expected to be funded from internally generated cash flow.
“We are pleased to have TIB Development Bank as a Tanzania-based partner supporting our activities as we move towards being a key player in the oil and gas sector in Tanzania. TIB have demonstrated a high level of understanding of and commitment to Wentworth and the emerging energy industry in Tanzania. We are now in a stronger financial position as we move closer to first cash flow from sales to the new pipeline in Tanzania,” says Chief Financial Officer Lance Mierendorf.