Wentworth Raises Output Guidance from Mnazi
Tanzania-focused Wentworth Resources has raised guidance for this year’s gross output from the Mnazi Bay field to 65-75mn ft3/d. It achieved the mid-range of 2020 guidance with an average 65.36mn ft3/day gross, it said January 14, despite a heavy rainy season increasing hydro power output, and the restrictions related to Covid-19 that hit industrial demand.
Following repairs to a flowline, theoutput capacity of the field, operated by Indonesian-owned Maurel & Prom, is now above 100mn ft3/d and December’s gas output averaged 82.93mn ft3/day (gross), with five days reaching 103mn ft3/day (gross), and a record high of 103.36mn ft3/d December 15. This will allow peak dry season demand to be met, it said.
The company paid an interim dividend of $1.2mn in October, an increase of 20% from the company’s maiden interim distribution of $1.0mn the year before, while total dividend distributions paid to shareholders during the 2020 calendar year rose to $3.2mn.
The company remains debt free with $17.8mn cash in hand at year-end. This year’s work programme will cost Wentworth about $4.4mn. One gas buyer, Petroleum Development Corporation (TPDC), continues to settle all gas sales invoices in full as they fall due and remains fully current with payments.
Another purchaser however, Tanzania Electric Supply Company (Tanesco) is 15 months in arrears and now owes Wentworth about $1.3mn.
CEO Katherine Roe said that Mnazi Bay had remained fully operational since the start of the pandemic. Industrial demand rose quickly when restrictions were lifted, allowing Wentworth to “comfortably” meet its production guidance. And the record volumes in December provide a robust outlook for 2021. She said: “We continue to align our commitment to delivering a positive impact for Tanzania whilst delivering long-term, sustainable returns for our shareholders – we strongly believe these two commitments must go handin-hand. For our shareholders, we’re proud to have paid $3.2mn of dividend distributions during the 2020 calendar year and remain committed to an ongoing sustainable dividend policy going forward."