Mozambican OK, Tanzanian Snag for Wentworth

Wentworth Resources, the Oslo and AIM-listed East Africa explorer, said June 22 it has secured government approval in Mozambique for its two-year appraisal plan at the 2,500 km² Rovuma onshore concession, as operator there, and has had its stake increased from 11.59% to 85%. The company discovered gas at the Tembo-1 well there in December 2014. Further north in Tanzania, however, the company has hit a temporary commercial snag.

The Rovuma plan will involve reprocessing 1,000km of existing seismic data starting this year, acquiring 500km of new 2D seismic from 2H2017, and drilling of an appraisal well in 2018. Mozambican state-owned Empresa Nacional de Hidrocarbonetos (ENH) retains a 15% participation interest as a carried partner at the Rovuma concession through to the commencement of commercial operations. ENH has the right to acquire a further 15% from Wentworth within 18 months from the date of submission for a development plan for consideration equal to the proportionate share of past costs.

At the Mnazi Bay gasfield in southern Tanzania, operated by France’s Maurel & Prom where Wentworth is a partner, the latter June 22 said that gas deliveries are continuing to the Chinese-built transnational pipeline for use in power generation near the capital.

Southern Tanzania, featuring Mnazi Bay (Map credit: Wentworth Resources)

At the Mnazi Bay gasfield in southern Tanzania, operated by France’s Maurel & Prom where Wentworth is a partner, the latter June 22 said that gas deliveries are continuing to the Chinese-built transnational pipeline for use in power generation near the capital.

Gross production volumes (at 100%) peaked at 74mn ft³/d during 2Q 2016, but were curtailed for a period of time in April 2016 due to heavy rains when some gas-fired generation was displaced by hydro power. Furthermore, it said that gross sales volume to the pipeline has been pegged at 50mn ft³/d since June 2, 2016 due to a dispute between Symbion, one of the power plants that uses Mnazi Bay gas which has temporarily ceased operations, and gas distributor Tanesco. It is unclear how long it will be before the dispute is resolved and power generation at the Symbion power plant resumes and, until such time, volumes are expected to remain at this level.

Mnazi Bay production facilities (Photo credit: Wentworth Resources)

Daily production volumes of 70 – 80mn ft³/d however are still expected to be achieved in 2016, once this dispute has been resolved and power demand stabilizes, said Wentworth. “With further power generation capacity still being installed, we are confident of the long term growth prospects for Wentworth," said its executive chairman Bob McBean, who owns 5.37% of the company’s shares. Mnazi Bay began gas deliveries in August 2015.

Mark Smedley | www.naturalgasafrica.com