I think you are missing the point.. we not going to sell all gas overnight.. the gas can be sold over 25 years.. demand maybe low now.. what about in 5 years?.. the country is growing and needs energy supply fit for future..not just for today.. business valuations are based on future earnings also
I don't think we will bother , horizontal in my limited oppinion is for the likes of HH unconventional where you are fracking and struggling to get gas or oil out . We will be conventional we have the opposite problem , controlling the pressure . So I am thinking whilst the rig is in the area just start on the field drill another producing well . Start new GSA negotiations and Twenty five year licence application . Don't show all cards yet drill N3 after terms and agreements sorted , better agreements whilst there is still some risk , we don't want to be over a oil barrel whilst negotiating .
Wentworth Resources reporting Q4 result this morning. Their JV with Maurel et Prom is the second largest gas producer in Tanzania. Their comment on Tanzania domestic demand for gas isnt to encouraging. The company is writing that they have production facilities with capacity of 130 mmscf/d but the guidance for 2017 is gas sales of only 40-50 mmscf/d.
"Production facilities now fully invested with capacity of up to 130 MMscf/d and current well deliverability expected to support substantial increase in demand."
"Mnazi Bay field production has averaged 44 MMscf/d year-to-date 2017, in line with guidance of 40 - 50 MMscf/d for 2017"
Tanzania is currently an oversupplied market and the growth is nowhere near what AEX/Solo is presenting in their investor presentations.
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