Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company, is today providing an update to shareholders.
Mnazi Bay Production, Tanzania
Gas demand for the Company's producing reserves continues to grow following the commissioning and startup of the country's newest gas-fired electrical power generation facility, Kinyerezi-2, with the first two of six turbines now operational. This new demand, combined with existing demand from the Kinyerezi-1 and Ubungo II power facilities, the lack of any material impact from hydro-electric power generation which typically occurs in Q2 and burgeoning growth in demand from industrial customers, culminated in a daily production exit rate for 2017 of 73.4 MMscf/d (gross). These were the highest production volumes produced from the Mnazi Bay field last year.
Mnazi Bay achieved average gas production in Q4 2017 of 62.2 MMscf/d. Taking into account the seasonal variability of Q2 due to displacement hydro-electric power generation during the annual rainy season, as well as production from industry competitors the average production for the full year 2017 was 49.1 MMscf/d. This was at the upper end of the Company's 2017 production guidance range of 40 - 50 MMscf/d.
2018 Production Guidance and Outlook
For 2018, the Company anticipates further growth in gas demand from the Kinyerezi-2 power facility as an additional four gas-fired turbines are expected to be commissioned during the year. New gas demand from the industrial sector in 2018 is also expected from the Dangote Cement factory when it begins using natural gas for in its operations as well as other new industrial customers.
For 2018, based on growing demand and taking into account the annual, seasonal lower demand during the Q2 rainy season, full year average production, is expected to be in the range of 65 to 75 MMscf/d. The Company will continue to update the market as new sources of demand materialise.
Tembo Appraisal, Mozambique
Design and procurement activities for the drilling of an appraisal well of the Tembo-1 gas discovery, are ongoing concurrent with the farm-out process to secure an industry partner to participate in the appraisal programme. The Company anticipates the drilling of the appraisal well in Q3 2018, subject to securing a partner.
Bob McBean, Executive Chairman, said:
"I am very pleased with the growth in production during the second half of 2017 and optimistic that we will achieve a yearly average production rate of 65 to 75MMscf/d in 2018. This increase in demand will enable Wentworth to continue to strengthen its balance sheet by building up its cash reserves over the course of this year and to pursue new opportunities to deliver an increase in value to our shareholders."
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