Wentworth Resources Reports Increased Gas Sales in Tanzania

Wentworth Resources in its latest update and Q4 2016 Financial Statements has reported that the Mnazi Bay field achieved average gross daily gas production during the fourth quarter of 39.4 MMscf/d up from 34.3 MMscf/d during Q3 2016 due to less downtime experienced at the gas fired power generation facilities, Ubungo-II and Kinyerezi-I power stations.

Year-to-date 2017 Mnazi Bay field production have increased and averaged 44 MMscf/d, in line with guidance of 40 – 50 MMscf/d for 2017 with an increase in gas demand from industrial customers, including Goodwill Ceramics and Dangote Cement expected later in the year.

Further demand is also expected from the Kinyerezi-I Expansion and Kinyerezi-II gas-fired power generation facilities which are under construction and on schedule for completion and commission starting in 2018. The anticipated additional demand from power sector stands at 70 – 80 MMscf/d once these new facilities are fully operational.

“Fourth quarter gas sales volumes were in line with our guidance of 40 and 50 MMscf/d and we remain confident this level is achievable for 2017, as we anticipate new demand from a local cement factory and a ceramics facility.  We expect a material increase in gas demand beginning in 2018 when the new Kinyerezi-I expansion and Kinyerezi-II power plants are commissioned,” Geoff Bury, Managing Director, commented.

In line with the anticipated demand the explorer adds that production facilities are now fully invested with capacity of up to 130 MMscf/d and current well deliverability expected to support substantial increase in demand.

Despite the increase in sales the explorer reported a drop in gas sales revenue to just $2.73 million for the quarter, compared to $3.10 million in Q4 2015. This resulted to a net loss of $0.42 million during Q4 2016 compared to a profit after tax of $32.81 million in Q4 2015,which  includes a non-cash deferred tax recovery of $34.34 million.

In Q2 2017 the explorer adds there will be the commissioning and full operations of the liquid separation units and gas processing facilities at Mnazi Bay which saw an expansion during Q4 2016.

“We enter 2017 with a positive outlook and with a business which is well positioned to take full advantage of the growing gas to power energy sector in Tanzania,” Geoff added.

Maurel et prom is the operator at the Mnazi Bay license with 48.06 percent while Wentworth and TPDC have 31.94 percent and 20 percent respectively.