Wentworth Resources to earn $140 million in Tanzania’s LNG project by 2019

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.

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  to 130 mmscf/d with the development of 3 development wells 8 months after delivery starts.

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.

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.

Wentworth estimates the net cost of field infrastructure US$6.7 mm to tie in wells as well as Install separation facilities.

The Tanzanian government is on currently constructing a 36” pipeline from Mnazi Bay to Dar es Salaam which Includes 210 mmscf/d gas processing facility at Madimba (in Mnazi Bay concession).

The projects which also include a pipeline with 750 mmscf/d capacity have been financed by China Exim Bank and been constructed by CNPC.

The company also says a portion of 667 Bscf P50 Contingent Resources (213 Bscf Wentworth’s share)1 to be re-classified as reserves.

Initial primary markets for gas expected to be power generation and industrial use.

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.

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