Wentworth Resources reports that, further to the Operational Update in June 2017 including an update on the Company’s Mnazi Bay asset in Tanzania, it is pleased to report that further payments have been received from Tanzania Petroleum Development Corporation (‘TPDC’) and Tanzania Electric Supply Company Limited (‘TANESCO’) totalling $1.2 million net to Wentworth, bringing the total cash received for invoiced gas sales to $7.9 million in 2017.
Since 31 March 2017, receivables from TPDC have remained consistent at four months and receivables from TANESCO have improved from thirteen months to eight months. The Mnazi Bay Partners continue to work closely with the Government of Tanzania to settle the remaining outstanding invoices.
As expected, daily production volumes during the rainy months of April and May were impacted by the use of hydroelectric power. However, since the end of the rainy season, gas demand has increased with June volumes averaging 45 MMscf/d bringing the average for Q2 to 31 MMscf/d. Furthermore, the Company has experienced a temporary increase in volumes since the start of Q3 due to maintenance work elsewhere in the pipeline system with July month-to-date averaging 71 MMscf/d. We maintain our guidance for 2017 averaging between 40 – 50 MMscf/d.
In relation to the recent legislative changes in Tanzania and the introduction of three new bills relating to the mining and oil & gas sectors, the Company has undertaken a review of these new laws to determine their implications on the Company’s Tanzania operations. Based on our current understanding of this new legislation and given the existing terms and conditions of our relevant agreements we do not anticipate any material impact on our existing operations.
The Company will report Q2 results on 10 August 2017 and will be holding a conference call for analysts and shareholders that day.
Geoff Bury, Managing Director, commented:
‘We are pleased to have received further payments from TPDC and TANESCO which demonstrates their commitment to settle invoices as soon as practicable. The payments received year to date have enabled the Company to meet its obligations and we continue, along with our Operator, Maurel et Prom, to work with the Government to resolve the payment delays and clear all arrears. It is very encouraging to see production volumes increase post the end of the rainy season and we remain confident in achieving our production guidance for the year.'(Source: Wentworth Resources)