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No RNS today means no news tonight….
Join our CEO Katherine Roe at
@MelloEventsUK
#MelloMonday tonight at 5pm GMT. Katherine will provide an overview of Wentworth's record financial and operational performance this year, which underpins our strong investment case.
Learn more here: https://melloevents.com/mellomonday-13th-december-2/
https://twitter.com/WenResources/status/1470365921776926727
They shouldn’t wait for $100 oil before looking at new deals that’s for sure. Danger is they are priced out on M&A and the existing gas production starts to slide.
If the company fails to deliver on their M&A promise in the next couple of months , it is really important that as many as possible shareholders attend the AGM (if possible) and demand action. Continuing to do nothing at all should not be an option for management anylonger. Reduce G&A permanently and pay a 10 million special dividend in 2022 and 2023.
To be fair to Mick, he was very positive in regard to the news on Energy shortages and what that should mean for WENS gas sales this quarter.
I agree that this company needs some drilling and development upside beyond depleting gas reserves whilst increasing cash reserves, that cash would be better being put to good use.
I absolutely agree Mick plus production has the habit of surprising on the downside particularly if they are not investing in the field. What you gain on the dividend you loose on the SP. Pointless
Alph,
As you know, I am not Norwegian (despite what some people think here), so no, I don't post anything on Xtrainvestor. I actually don't really follow it either by the way (same with the ADVFN forum).
Besides, there is very little news to expect that is relevant for WEN, apart from news related to an increase in gas demand (outside WEN's control) an M&A deal (waiting on this for many years now) or a cost reduction (which WEN's management refuses).
Sorry to say, but I don't see WEN as an attractive investment based on the dividend alone. I fully expect the share price to continue the downward trend in the absence of an M&A deal. In the end, this company is shrinking year by year in terms of NPV and the dividend barely exceeds the inflation rate in many countries.
Shareholders should finally wake up and force management to radically cut costs, that is what I want.
And Atrol, don't you find it amazing how long Katherine can continue the blah blah blah? There is absolutely nothing new in that story.... yet again.
And Astrol,
So you can still read om Xtranvestor, just not write?
“The debate has shifted recently; the consideration of Africa’s needs is now front and centre, and there is a much wider sense that a just transition is needed”, Roe says. “Africa is a low climate change contributor, and it is important to protect the continent from being forgotten about in the transition discussion.
“It is better understood now that, for Africa, it is not as simple as just halting all oil and gas investment. We need to look at the energy transition in the developing world through a different lens than the developed world”.
end
There is no flaring or methane leakage from the field, which also benefits from relatively new and efficient facilities and technologies. It is a “good operation as it stands, but we want to abate emissions as much as possible and we are also looking at local offsets, which will benefit local communities”, Roe says.
Wentworth has only the Mnazi stake to date, but it is looking at other potential opportunities “predominantly with gas”. The company has a proven track record with gas-to-power schemes, Roe says. Wentworth would also consider renewable energy investments in the long term, with the intention to maintain a lower-carbon portfolio.
The company is focused on Tanzania, as it already has good, established relationships and connections in place, Roe says. But there are wider opportunities in east Africa that the firm will not exclude. And Tanzania’s gas reserves and plans to expand gas-fired capacity could see it become a regional hub for power and/or gas exports someday.
Mnazi’s proximity to the border with Mozambique means security is a concern due to the insurgency in Tanzania’s southern neighbour, which has already significantly affected LNG developments there. Mnazi has been well-protected, and additional security measures are now in place, Roe says. The importance of the gas for Tanzania as a whole means the government is keen to ensure security.
Good governance
Wentworth has “great relationships” in Tanzania, Roe says, emphasising the equity partner status of TPDC. “We work very closely and well”, she notes. Foreign companies must partner with African governments, Roe says, adding that the days when foreign firms could act with impunity are gone.
Wentworth has not experienced any recent receivable issues, nor any Covid-related disruption. Tanzania has reliable and good governance and has a stable administration. And the authorities recognise how fundamental gas-to-power is for the country, Roe adds.
Foreign companies often face issues while attempting to monetise gas successfully in developing countries, particularly if the government caps energy prices or if the general public cannot afford to pay for services. But Tanzania is different. The NNGI pipeline significantly lowered the cost of delivered gas, so TPDC can sell the fuel to state utility Tanesco at a price that still allows it to make a profit.
That resulted in a significant shift in the balance sheet of Tanesco, which was formerly a loss-making entity when solely reliant upon Songo Songo gas and other emergency fuels. And that in turn means Wentworth has not experienced issues over payment.
Wentworth considers gas as integral to the energy transition. And when considering ESG, “it is important to link the environmental and social aspects”, Roe says, emphasising that low-cost and low-carbon power provides a huge benefit to Tanzania. Roe also argues that, for Africa, energy access “must come first” in transition planning.
continues
from an article in Pemediannetwork.com
Mnazi is performing well and meeting its annual production guidance of 70-80mn ft³/d (2-2.3mn m³/d), Roe says. Production has been held beneath capacity, however, and the field can produce just above 100mn ft³/d from the five wells in place. Tanzanian gas demand has constrained Mnazi’s production to date, but that is changing, Roe explains. The field’s output was uninterrupted this year, and Wentworth is looking to optimise the asset further.
Spare capacity
There is spare capacity already in place to allow expansion, since the Mnazi gas processing facility has an installed production capacity of up to 210mn ft³/d. In addition, the National Natural Gas Infrastructure (NNGI) pipeline—which links Mnazi with gas-fired power stations around Dar-es-Salaam—can accommodate around 800mn ft³/d.
Spare capacity
There is spare capacity already in place to allow expansion, since the Mnazi gas processing facility has an installed production capacity of up to 210mn ft³/d. In addition, the National Natural Gas Infrastructure (NNGI) pipeline—which links Mnazi with gas-fired power stations around Dar-es-Salaam—can accommodate around 800mn ft³/d.
Roe is confident that Tanzanian gas and power demand is set to rise in the coming years, as the government is pursuing two significant targets: 5GW of installed power generation capacity by 2025, up from approximately 1.6GW currently; and universal access to power by 2030, up from sub-40pc now.
Tanzania should also see a parallel upturn in industrial demand growth alongside the expected rise in residential demand. But Roe admits there is a “chicken and egg” situation with the former, as industry wants the supply in place before investing, while suppliers ideally want the demand to exist before they develop projects.
Demand poised
Wentworth is well-positioned to capitalise on demand increases in Tanzania, as Mnazi is one of only two producing fields in the country. The other is Songo Songo, which is operated by Toronto-listed Orca Energy. The country’s energy mix is also already around 50pc gas-fired and 35pc hydroelectric, although the latter increases during the wet season and displaces some of that baseload gas capacity.
Tanzania is a leader in Africa in terms of gas-fired generation capacity, and a “great example” for the rest of the continent, Roe says. The country made a “bold move” to commit to gas a few years ago and now enjoys the biggest and best gas infrastructure network in east Africa, she adds.
The government’s strong backing means gas will remain an important part of Tanzania’s energy mix for decades to come, Roe suggests, while the country does not have a legacy of historical dependence on other fuels. In addition, the “very-low carbon intensity” of Mnazi and Tanzania overall also helps the long-term prospects for gas projects in the country.
contiues
Highyield,
The 50 mln 2022 work program is still subject to “requisite government approvals”. No doubt that the licence extension is key part of these negotiations, so I see this announcement more as “carrot” to entice the government to approve an extension….
When calculation the shareprice performance of Orca, one should include the 25% buyback of the outstanding shares at 6.50 CAD.
What I fins mostinteresting is that Orca is investing 50 musd in 2022, When the license expires in 2026. Maybee they have some signal that the license will be extended. Positive for WEN as well.
To quote a norwegian saying: Mot dumskap kjemper selv gudene forgjeves. - - translated : "against stupidity even the gods fight in vain "
I rest my case so far....
And why would anybody care about whether you hate a comment or not?
You have expressed your disapproval many times now. Time to move on. Post some positive news about the company if you feel the balance is wrong.
well My point is Orca has fallen about 20 % this year and you are praising the company.?? I hope for Orcas shareholders sake the shares will again raise to ATH. I also hope for Wen to rise ATH. There will be no news in near future except, but probably 2021 will be the best ever for WEN. There might however come some good news any day.
I think it is plain stupidity, if a person wants to sell his shares, and constantly is complaining about the share price and all the time is talking **** about the board of directors, and the management. Never a positive word. To me that is totally insane. There are few platforms regarding WEN. Both this discussion forum and Xtrainv. forum contain mostly negativ and plain stupid posts in my opinion. I hate the unrealistic and unnessessary things you and other shareholder have posted about wen. Both the negative and positive stuff
So, Orca has a significantly better P/E ratio and an even higher dividend yield than WEN, but still drops 20%. So what do you think WEN will do? A company “operating” in the same market but doing far less…
Well my mistake Mick. Thanks for informing. I found another company at LSE with the «Orca» name and considered it to be the company you praised.
Comparing the companies - I find honestly no reason for you to complain so much:
The correct Orca has fallen from 52 high 4,95 to now 3,96 = down about 20 %
PE ratio Orca 3,91/ Wen +13.289
Yield Orca =7,84 / Wen +7.590%
Market cap: Orca 157 Mill can $? / Wen £36 mill
Orca pays quarterly dividend (0.4 CAD annually). Dividend yield is about 7.8%.
At at least do some research and look at their website before you post such messages Astrol...
Hi Mick? I am neither positive nor negative - just realistic. You are only negative, A negativ stupid bitter sentiment exist among the Norwegian shareholder. Probably because anyone will be kicked out of their discussion forums if they are commenting the negativity and stupidity..
Here are som realistic facts:
PE ratio Orca minus 102.125 Wen +13.289
Earnings Orca minus 0.362 Wen +1.467
Dividend Orca 0 Wen +1.48
Yield Orca = 0 Wen +7.590%
Market cap: Orca? Wen £36s
In view of that I dont get it; you praise a company you dont own shares in, with much worse results than the company you own and slaughter again and again the company you own shares in. I sincerely dont get it. Why all the bitterness and hatred?
Astrol,
While I admire your positivity (to Some extent) I fear that you are seriously deluded regarding WEN’s performance. The company has not delivered anything for years now and I fear that it won’t change either in future. And yes, I am very disappointed in this company. If it wasn’t so difficult to trade I would have sold all my shares a while ago already, as I don’t expect anything to change in future. Luckily I did sell some shares at 25p though.
But where are your positive comments about WEN? Very little to say, or?
Whether you like it or not, I won’t change my comments here until these guys actually deliver something.
Hi Mick, Again- complaining, complaining and always complaining. Never ending story?
I hope ORCA shareholders will do great, but the fact of the matter is that Orca shares are not moving a lot. Neither today nor in the long run. Actually from Orca 52weeks high the share price is down about 16 % - more or less the same as for Wen,
However, I did not see ORCA deliver investors any dividends. Maybe I was wrong about that?
I wonder, what is wrong with you? Are you bitter because you or someone else did not succeed in kicking out the the board of directors so the shareholders could select you or your people to be board members? Or do you have any other reasons for hating the management of the company you own shares in??
Impressive what Orca is doing in Tanzania, and no comparison with Wentworth. It's such a terrible shame that Wentworth is controlled by a bunch of people that keep on prioritising personal interests over the interest of its shareholders. No wonder that the shareprice is so low. Apart from the dividend there is quite simply very little to look forward to.
https://orcaenergygroup.com/2021/12/02/operations-update-guidance-for-2022/
Be sure to catch our CEO, Katherine Roe, next week at the World Energy Capital Assembly, hosted by the
@EnergyCouncil_
.
Click here to find out how you can get involved: https://energycouncil.com/event-events/world-energy-capital-assembly/
A good conversation.
https://twitter.com/mgrahamwood/status/1461769608277413894