Wentworth CEO sees both capital and dividend growth opportunities in Tanzania's Mnazi gas field Watch Now
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1 China 45,520 45520
2 India 12,000 12000
3 Russian Federation 10,300 10300
4 United States 8,730 8730
5 Indonesia 5,100 5100
6 Trinidad and Tobago 4,466 4466
7 Ukraine 4,160 4160
8 Canada 3,942 3942
9 Saudi Arabia 3,700 3700
10 Egypt 2,950 2950
11 Germany 2,823.41 2823.40991210938
12 Qatar 2,665 2665
13 France 2,644 2644
14 Iran, Islamic Republic Of 2,500 2500
15 Pakistan 2,500 2500
16 Italy 2,365 2365
17 Poland 2,100 2100
18 Oman 1,700 1700
19 Uzbekistan 1,300 1300
20 Bangladesh 1,300 1300
21 Venezuela 1,200 1200
22 United Kingdom 1,100 1100
23 Japan 1,055 1055
24 Lithuania 918.4 918.400024414063
25 Mexico 879.7 879.700012207031
26 Belgium 830 830
27 Belarus 815.2 815.200012207031
28 Algeria 713 713
29 Slovakia 485.52 485.518005371094
30 South Africa 470 470
31 Kuwait 470 470
32 Austria 400 400
33 Croatia 350 350
34 Bahrain 341 341
35 United Arab Emirates 330 330
36 Bulgaria 320 320
37 Hungary 300 300
38 Norway 300 300
39 Turkey 280 280
40 Turkmenistan 280 280
41 Portugal 244 244
42 Czech Republic 200 200
43 Georgia 150 150
44 Iraq 143 143
45 Greece 130 130
46 Serbia 130 130
47 New Zealand 120 120
48 Romania 115 115
49 Korea, Democratic People's Republic Of 100 100
50 Libya 79 79
51 Finland 72 72
52 Cuba 59 59
53 Syrian Arab Republic 50 50
54 Afghanistan 30 30
55 Switzerland 30 30
56 Myanmar 30 30
57 Zimbabwe 25
Proman is one of the ten leading global fertilizer companies. Our ammonia production facilities in Trinidad and Tobago are located on the Point Lisas Industrial Estate and have a combined annual capacity of almost 2 million metric tons.
The CNC and N2000 plants which produce anhydrous ammonia for export are joint ventures in which Proman is the majority shareholder. CO2 off-gas is sold to Proman's methanol facilities and AUM complex for use in the methanol and urea production processes to reduce emissions. The final product is marketed and distributed by our long-time partner Koch Industries.
Jayque, I recall that they had to mothball a couple of plants due to lack of feedstock.
The cost of ammonia and methanol production is almost entirely dependent on the cost of feedstock, which is why the ICI plant at Billingham - then the largest in the world - closed in the late 1980's when the fixed price North Sea contract at 6.5 pence per therm came to an end after 25 years.
I think that the T&T Government may very well cross-subsidise the gas price to Chemical Producers with their Heritage 20% share, as the economic benefit and added value may make it worthwhile, we shall see.
The most important thing is that our production is very significant.
It is interesting too see that in press releases that Heritage Oil likes to give the impression that they are in charge and that TXP is a pawn in their empire, whereas the 20% is effectively an extra tax on companies as a result of a Government monopoly on granting permits.
Methanol Holdings (Trinidad) Limited (MHTL) is one of the largest methanol producers in the world with a total capacity of over 4 million MT annually from its five (5) methanol plants located at the Point Lisas Industrial Estate. The company is the largest supplier of methanol to North America and is also a significant supplier to the European Market. The five plants use the ICI Low Pressure Process:
TTMC Plant I (TTMC I) – [M1]
Caribbean Methanol Company Plant (CMC) – [M2]
TTMC Plant II (TTMC II) – [M3]
Methanol IV Plant – [M4]
M5000 Plant – [M5]
Methanex is also one of the largest methanol producers in the world with a total capacity of over 2.5 million MT annually from its two (2) methanol plants located at the Point Lisas Industrial Estate. The company supplies North America, Europe and the Caribbean. These two plants use the Lurgi Mega Methanol Technology:
Methanol Holdings (Trinidad) Limited (MHTL) is one of the largest methanol producers in the world with a total capacity of over 4 million MT annually from its five (5) methanol plants located at the Point Lisas Industrial Estate.
THIS IS SEPERATE COMPANY
• Dimethyl ether (DME) is a clean-burning fuel used primarily for household cooking and heating in China as
a substitute for liquefied petroleum gas (LPG).
• There is even larger demand growth potential using DME as a clean-burning substitute for diesel.
thanks Dana - just googled Methanex -Our two plants in Trinidad are key contributors to Methanex’s global network and essential to Trinidad and Tobago’s position as a world leader in methanol export. Methanol is used by chemical manufacturers in the production of other industrial chemicals that are used
to make a countless array of consumer and industrial products such as building materials and plastics.
• There are also growing markets for the use of methanol in the energy sector, including direct gasoline
blending, marine shipping fuel, dimethyl ether (DME) and biodiesel. Today, approximately 45 per cent of
global methanol demand is in the energy sector.
• Methanol blending into gasoline offers an alternative to the import of petroleum products and additional
fuel choices to consumers. Methanol blending enables the extension of the fuels pool through the use of
feedstocks such as coal, gas and biomass to produce methanol, which can be used as a substitute for
• Methanol-to-olefins (MTO) emerged as an application for methanol as a result of the relative
competitiveness of methanol as a feedstock versus naptha-based olefins that are linked to the price of
Q. What are the chemical derivatives produced from methanol?
• Formaldehyde is a primary derivative of methanol and the largest single end-use for methanol.
• Formaldehyde derivatives, such as urethane (for urethane foam products) and plastics are used in
products for the office, car and home.
• Engineered woods, such as plywood, used in home construction and furniture are bonded with resins
based on formaldehyde.
• Acetic acid, a derivative of methanol, is used to produce terephthalic acid (PTA). PTA is used to make
polyester fibre for carpeting and textiles.
• PTA is also a basic component of polyethylene terephthalate (PET) plastic, which is used to package
beverages and household products. In addition to its clarity and impact resistance, PET plastic has the
advantage of being 100 per cent recyclable.
• Acetic acid is a major component of vinyl acetate monomer, which is used to manufacture water-based
paints and adhesives and is a welcome replacement for solvent-based products.
Methyl tertiary-butyl ether
• Methyl tertiary-butyl ether (MTBE) is a clean-burning gasoline component manufactured from methanol.
Its use is credited with reducing smog and tailpipe emissions.
• While MTBE use in gasoline has traditionally been as an octane enhancer, many regions that suffer air
quality problems require the use of MTBE as an oxygenate to reduce vehicle emissions.
• MTBE is used in Europe to meet the continent’s stricter gasoline regulations and in Asia to help reduce
lead and aromatic content in gasolines.
• Dimethyl ether (DME) is a clean-burning fuel used primarily for household cooking and heating in China as
a substitute for liquefied petroleum gas (LPG).
• There is even larger demand grow
I think that it is all speculation at this stage, and because reserves figures are key to Net Asset Values in the Company's Report and Accounts, they are conservative by definition, as third party valuers don't want to be sued if production doesn't go as anticipated.
After it has been producing for 6 to 12 months, they may very well revise them upwards, but not at this stage imho.
As for life expectation, that is getting into experts' territory, Carapal Ridge has exceeded all expectations, and hope that we will too - get your crystal ball out.
Sankeys figure of 50 pence represents about 18 months' production which is conservative to the right of Attila the Hun, but he may be right, you can never tell what the market is going to do.
RRE share price of £10 versus £23 cash in the bank per share makes no sense either.
It's the market, innit?
I guess the reserves estimate will give us guidance of the depletion rates ? working life of these wells ? Excuse ignorance - not really an expert in Gas
Sankeys, I think that a Years Purchase of 5 is very conservative, I haven't got my copy of Parry's with me, but would think that it's an internal rate of return of about 20% or so, depending on how long you think it will produce for.
Carapal Ridge is still going 30 years on.
You have multiplied yours figures by 5, so you do not see and drop off in your plateau rate for 5 years?
Also any NAV in this market should have a 20% discount to it, i think Cas is worth 50p to the SP with route to market established and 20p for other producers and Coho. Chinook would if successful be the one to take it over £1. If the market improves and sentiment in O&G increases this figure could increase by 50%.
Yes thanks Dana - however which way you look at this the upside is massive !!
Dana - I think so too - have researched to death and genuinely struggling to find a negative - The cheap raise initially peed me off - but proved to be a stroke of genius - I do like that Heritage are our partners - government interest should facilitate quick approvals etc the only issue is the VAT - but we are getting the VAT bonds so no real negative in bigger scheme of things
Good point Jayque, but I reasoned that there is currently a significant premium on Gas in T&T to the US price, which should offset the pipeline costs, but it is all speculation at this stage.
Yes, the other producing assets and Coho 1 are worth say 50 pence per share, so it is all looking pretty good really.
Then there is the potential of Chinook which may be 3 or 4 times bigger, plus another 10 or 11 targets that Paul mentioned.
All in all, it's looking pretty exciting to me, I hope that the market begins to realise the true significance of what we are sitting on here.
Edit. I dont see Cascadura Deep as an exploration target anymore. We now there is a monster down there, just not whats under it :)
Yes, this is overwhelming. And most likely we will get this sorted out this week. I mean, if your very conservative numbers are correct Dana, we are in for a hell of a ride here. No way the SP will stay at these levels if just Cascadura #1 is worth £1.50 per share. then there is our existing production, COHO, and the next two exploration targets to take in to consideration just this year. Much more to come in the next 3-4 years.
It will be very interesting to see if North is done selling now and how Canada will open. We should see a lot of buying today - monay, oil doing just OK, futures in the US is green and most likely news tomorrow morning.
Dana - surely there will be a discount to the $3 due to pipeline costs by NGC ? - with coho and Oil to add though SP of £1.50 appears realistic - also add on for other drills / prospects - must be worth something ?
This Framework Agreement is a key step to a
timely maximisation of this world class asset.” WORLD CLASS !!!
Lexion, I prefer to look at it on a Discounted Cash Flow basis.
Stage two flow testing supports an initial production range between 7,750 and 9,700 barrels of oil equivalent per day ("boe/d"), including an estimated 40 to 50 million cubic feet per day ("MMcf/d") of natural gas and an estimated 1,100 to 1,400 barrels per day ("bbls/d") of natural gas liquids, significantly exceeding pre-drill expectations.
The second stage of production testing commenced on March 8, 2020 and achieved a peak flowback rate of 5,760 boe/d, including 29.4 MMcf/d of natural gas and 865 bbls/d of natural gas liquids.
We are going to have two producing drills here, with potential for a deeper find of more oil beneath the existing discovery.
Rather than just doubling the figures, I am going for 150% of one well to err on the safe side, even though max drawdown had negligible pressure drop.
Gas ay 45 Mmcf/day x 1.5 = 67.5 Mmcf/d at say $3,000 per Mm = $202,500 per day no SPT
Oil condensates 1,250 bpd x 1.5 = 1,875 bopd at say $35 (we may get a premium) = $65,625 per day
Total = $268,125 per day with low prices. We get 80% = $214,500 per day, in a low price environment.
Let's knock off $14,500 per day production costs so $200,000 per day x 365 = $73,000,000 per annum.
No, let's be really conservative and call it $65 million per annum from Cascadura.
This has to be worth a minimum of 5 x which equals $325 million, and if we hit a bigger one with Chinook then 3 x that.
That is what is known as a 'Wall of cash'. $325,000,000 divided by 183 million shares = $1.8 usd per share = £1.50 per share.
Please feel free to refute my numbers, these are for discussion purposes, and only for Cascadura.
WOW. That's why I can't sleep.
The Framework Agreement marks an important step towards boosting Trinidad and Tobago’s gas supply
to existing markets. In a broader context, this Agreement also represents a significant development for
Trinidad and Tobago, as it signals the first commercial gas production from onshore fields in nearly two
Commenting on the importance of this Agreement, NGC President Mark Loquan noted:
“In the context of world events and the domestic gas scenario, this Agreement and the considerable
potential of the underlying asset are welcome good news for our energy sector. Credit must be given to
all our teams, across all three parties, who have been driving the effort to ready this Agreement, even
amidst prevailing challenges. NGC has been aggressively pursuing new sources of gas as part of our
growth strategy, and this development adds another measure of stability to supply from a promising
new prospect. We are now set to open a new chapter in the history of onshore natural gas production.”
Paul Baay - CEO of Touchstone, which is based in Calgary - commented:
“This Framework Agreement is a very exciting opportunity for us to partner with two prominent Trinidad
organisations to fully develop our existing and future natural gas discoveries on our Ortoire exploration
property. NGC brings the vast understanding of gas infrastructure to the project and Heritage brings
technical knowledge to support the Touchstone team. This Framework Agreement is a key step to a
timely maximisation of this world class asset.”
CEO of Heritage Arlene Chow added:
‘’We are really excited to have achieved this milestone with Touchstone as operator since the last
onshore gas discovery was in 2002, not too far away in the Carapal Ridge 1 well. The Coho, Cascadura
and other developments from the Ortoire Block are important to our near and medium-term growth
strategy in Trinidad and Tobago and to our commitment to help secure the country’s energy future and
the creation of sustainable jobs. In this regard, we value the continued strong relationship with our
operator Touchstone and NGC to achieve this strategic vision.”
With this Agreement now in place, the next steps will be conclusion of detailed Gas Supply Agreement
Terms and the development of the Coho and Cascadura fields.
LEXION - obviously Coho and Oil on top of that - I genuinely think 200 bcf is low ball - PB said Hundreds of BCF - imo - he would have said a couple of hundred if he was trying to convey low hundreds - we will soon find out - but PB has always under promised and over delivered
While stuck in a queue of lorries waiting to tip a load of wheat I have a few mins to look at reserves
If the general consensus here is in the region of 200 bcf then Cascadura could hold in the region of 35 mboe
What value would be placed on those sort of reserves ?
If that was purely oil - I guess $165 m or £135 m or 75p a share
Am I too far off the mark ?? GLA