Wentworth Lowers Annual Production Guidance On Separate Gas Supply

(Alliance News) - Wentworth Resources PLC said Thursday it has lowered its production guidance ...

Alliance News 27 June, 2019 | 5:34PM
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(Alliance News) - Wentworth Resources PLC said Thursday it has lowered its production guidance for the Mnazi Bay gas field in Tanzania, following the supply of additional gas from the SongoSongo field into the country's transitional pipeline.

The East Africa-focused oil & gas company has lowered its average daily production from Mnazi Bay for 2019 to the range of 60 to 75 million standard cubic feet, compared to the 75 to 85 million standard cubic feet previously guided for in April.

Additional gas is to be supplied into the National Natural Gas Pipeline from the SongoSongo field, following the singing of a gas sales agreement in May between the government of Tanzania and Pan African Energy Tanzania Ltd.

Wentworth expects this additional supply to continue through the second half of 2019.

Operationally, average production for the year to date ended June 24 was 65.6 million cubic feet, affected in the second quarter by increased hydro-electric supply during the rainy season.

With the wet season coming to an end, output from the hydro-electric power plants is starting to diminish.

Looking ahead, with the Ubungo II plant turbines repaired, power evacuation problems at the Kinyerezi power stations resolved, and higher demand from the Dangote Cement plant, Wentworth expects existing demand to rise in the second half of the year.

"We have adjusted our 2019 production guidance to take into account the additional 20 [million standard cubic feet per day] supplied into the NNGP from the only other in-country supplier, due to a new GSA executed post our January 11 guidance. Demand outlook continues to be strong and the Mnazi Bay joint venture partners continue to be well placed to supply that demand into the later part of 2019 and beyond," said Chief Executive Officer Eskil Jersing.

Shares in Wenworth Resources closed 1.3% lower at 19.50 pence on Thursday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Wentworth Resources PLC 20.00 GBX -2.44 -
Wentworth Resources PLC 0.35 37.25 -
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