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Daily average gross production in 2021 was 24% higher year-on-year
Wentworth remains debt free with $22.8 million cash on hand at 31 December 2021
https://www.londonstockexchange.com/news-article/WEN/operational-update-and-2022-production-guidance/15302038
Nope it doesn’t work like that. M&P ( now Indonesia state oil co) do all the work and bill WEN.
CPR from 2020 suggested 100 bcf in the ‘barn’ before more wells and development effort required. So at present production 36bcf a year it takes you to ? Q3 next year.
Gas from existing wells is running out quickly so they need a drilling plan or a new asset..or two
I have a feeling that based on the recent appointment of the COO that is exactly what they will be doing Geo, otherwise why appoint such a position in a non operator company?
Well well, Geowitch, I know it is popular to tell Wen are doing nothing at all and it is a "Non -operational" but it is not the truth
It is like if I and You owned a well, you owned 60 % and I 40, We need f. instance a working force of 10 people to operate the well. So we take responsibly for differenct part of the operation, I take one part - you another. You employ 6 persons and I 4. And we work in teams. Wouldn't you say I am then a bit more than "non-operational" ? And if not, would it be like if you had taken the role to be operator alone, wouldn't you send me bills for your expenses, so that I had to share the expenses according to the percentage of my ownership?
Like many here they complain and complain and seems simply not understand the situation. It seems like they think M&P would pay all expenses and we would get all the income according to our % ownership. And they claim the G&A expenses are ridiculous when "we" are doing nothing at all.
And by the way you have a point with the resources are getting smaller. But the fact is that there are luckily huge reserves in what we own. Therefore Wen has employed a manager to take care of this problem for the future. That is a part of being a semi-operator and working in teams.
Surely M&P operate and WEN are sleeping partners?
Yes they turn a profit but it’s like selling all the hay in your barn without investing in next years harvest. They meet more wells or investment in another asset or obviously the asset will shrink to next to nothing. It’s not complicated.
"Ask not what the country can do for you, ask what you can do for the country. "
I would say I am impressed by Kathrine Roe, She took over the management when the prise was just over 17. In spite of some people complain constantly. There is such a negative vibe around all the lies and all the negativity shareholders post about wen. Even lies are posted, IE Wen is a "semi - operational" gas company, they share the operational duties with M&P. The SP price has gone up during Kathrine. it has not been a disaster like some people lie about. The company is in pretty good shape and probably one of the safest bets these days.
So being a shareholder in Wen should be quite safe.
The sale prise is only about 21p and thereby the stock is extremely undervalued. The ROI last year has been + 22 % and in addition it has given a dividend of almost 10 %.
According to one investment analysis the SP is 78 % below fair price. Fair value according to this analysis is 89p.
Net profit margin is about 25 % higher this year than previous 3 years. Next year net profits probably will increase more.
Wen is outperforming industry average regarding to PE ratio - Its P/E ratio is 9,9 compared to 13.3 for industry average and compared to the market in general of 19.6
Wen is doing great regarding P/B ratio . P/B of Wen is 0.5 compared to Gas and Oil industry of 0,9.
What does the management team actually do at this company? Is there a plan to replace the gas resources being drained or are have they set their alarms to wake them up once the gas is drained and SP is approaching zero.
Hi damofarl, you would be surprised at how many people read the boards and then decide if they are going to bother to read the RNS's...
@cperkin99 Main posts are Tanzania, AIM, Crypto (Tezos) XTZ & I always follow back.
cperkin;
I would think one of the first things a new investor would do is read the RNS's first; to not do so suggests a speculator not an investor.
I've never blocked anyone in my life, and despite your encouragement to do so, i'm not going to start by blocking you - everyone has something to contribute, and i feel that you may contribute a nugget that is relevant and aids/adds to our awareness/understanding, and i wouldn't want to miss such. You can always block me if you are so keen on this functionality?
With regard to your Twitter plug, what's your handle so i can follow you?
Whilst we are in pedantic mode......"...PS I didn't realise that cash balances mentioned for end of November were 4 months old by Jan?".
Well, that merely reflects on the journalism doesn't it......from your reposted article -----------------------
According to Wentworth’s interim results report for 2021, the company’s revenues for the first half of the year up to June 30 went up by 40 percent to a best-ever $11.7 million due to record levels of production at the Mnazi Bay gas field in Ruvuma region.
It said the figures placed the company in “the strongest financial position in its history” with record revenues, earning before tax, and cash-in-hand which stood at $24 million by November 30,...---------------
Well thats actually a month and a day for the operational update that they don't refer to (RNS 16/12) and 4 months and 15 days from the RNS they do refer to (02/09/21).
Which rather reinforces my point - just read the RNSs first.
Don't forgot your Twitter moniker as am genuinely interested in any news on Tanzania.
Yes we all understand your point of view damofarl as an old seasoned investor in WEN but hey maybe new potential investors drop by and find it interesting? I also retreated it on twitter as I do with most news flow about O&G in Tanzania.
PS I didn't realise that cash balances mentioned for end of November were 4 months old by Jan?
Each to their own, use the filter, I will post what I want when I want thanks.
i have no shame in asking a straight question, that received no answer just a personal side swipe.
I'm not sure whether an article, based on 4 month old publicly available information, is meant to boost the interest of Tanzanian's in WEN, ergo buying shares in WEN, hence boost WEN. I think it is highly unlikely a single Tanzanian resident will buy shares in WEN because of this. So what is the value in this 'news'? Zilch. It's more likely to annoy local people that they are being corporately pillaged by fat British 20 y.o. Glemorangie shareholders.
It certainly doesn't boost the interest of British investors who can see the original 4 month old RNS/website declaration, none of whom would have seen this new newspaper article if it wasn't for the post on this board, myself included. So you wouldn't have seen this article if you weren't already a shareholder/interested in WEN, in which case you would have already checked their RNS's/their website, so it has garnered nothing new, no new interest/investors.
So i ask again, what was the point of posting 4 month old news? Why is it sad/negative/wrong to ask that unanswered question? What value has it added to our knowledge/understanding of WEN's prospects?
I don't think an article from an obscure African news source that is rehashing something 4 months old should be the grounds of interest, or grounds to invest. I don't see what this adds to our understanding of WEN?
Why not just repost the base RNS?
The faster they produce the sooner they need to drill more wells to replenish the gas. At the moment the gas from the present wells is done later next year. It will soon need to splash the cash.
Aminex on one of their runs - up 24% today but still under a penny.
Damofarl Some people are joykillers. It seems like they find pleasure in that. Like one person hundred of times harass the management -of wen even stating lies about the SP development, and about the fact that Wen is in fact a semi-operational company - working closely in cooperation and partnership with M&P.
I read Perkins post and became happy.
Then Your post and it did not make me happy. I think when something happens it is news. It is also news when media report the news. Then it is news in a broader sense.
I think also for my part, the following were good news. "Production at the Mnazi Bay gas field averaged 80 million standard cubic feet a day (Mscf), above the 2021 target and the country’s overall gas demand for the year as production costs dropped 72 percent to $0.48 per Mscf “due to continued focus on cost efficiencies and high degree of operational leverage at Mnazi Bay,” it said."
Knowing we get 7% more paid, and knowing there're a lot of uncertaintiesin the world today , like money becomes more expensive, I think Wen is quite a safe haven compared to a lot of other companies.
Fine damofarl, if you are not interested in what's being reported in country and when, (why now?) feel free to ignore or use the filter.
Have fun
cperkin; how is it more relevant when it's taken from a 4 month old RNS? Frankly, if its taken anyone 4 months to digest something they shouldn't be invested here, or frankly in anything.
And to believe a 'fresh' post from a journalist who has taken 4 months to read something publicly available as relevant shows where the irrelevance is.
i look forward to your/the journalists next post on the 21 August.......
Each to their own damofarl, I would suggest the article is far more interesting and relevant than your own post m8.
Hey ho.
re; "Not really sure what the point of the post it?"
Shame on you damofarl!!
cperkin; whilst the article you link is today, the interims were 4 months ago, so hardly new news for anyone that takes the time to follow the company they are invested in.
Not really sure what the point of the post it?
According to Wentworth’s interim results report for 2021, the company’s revenues for the first half of the year up to June 30 went up by 40 percent to a best-ever $11.7 million due to record levels of production at the Mnazi Bay gas field in Ruvuma region.
https://www.theeastafrican.co.ke/tea/business/uk-gas-producer-posts-record-earnings-buoyed-by-tanzania-plant-3684982
Thanks to Smudger63 on the AEX board.
Agreed Damofari,
But I fear that the reality will be quite different. WEN has never cared much about shareholder returns, and I expect them again to try to get away with a lousy dividend increase of 10-15% max, and starting only with the second payment this year (October).
If the company reduced their excessive spending they could easily double the dividend sustainably. The cash pile should be distributed gradually amongst the shareholders with a separate special dividend.
Sweet dreams…. it will however never happen I’m afraid. Management prefers to silence shareholders with a fairytale about “value accretive M&A opportunities” instead….
mick2020; frankly they could double the dividend out of cash balance, forget the increased production/potential CPI uplift!
They won't, but i do see a 50% divi increase, probably delivered as a 'special'. I'm really optimistic here. Yes i know it's flattered to deceive, but i do think it's turning a corner; steady but sure; let's take some cash out for long term holders whilst waiting to see what the Co's long term 'vision' is
The Mnazi Bay gas sales price is linked to the US CPI and corrected annually so prices are up 7% this year; see link below. Quite incredible.
As a result though, given the 7.5 mln shares buy-back (or 4% of share capital) WEN can increase the dividend approx. 10% without losing any revenue. Given the progressive dividend policy and the fact that 2021 has been a "transformative year" for the company, I feel that shareholders should expect (and demand) a dividend increase of at leat 20%. Personally I'd like to see a doubling of the dividend, but obviously that won't happen without a restructuring of the company focussed on minimising costs.
Just for info!
https://www.bloomberg.com/news/articles/2022-01-12/inflation-in-u-s-registers-biggest-annual-gain-since-1982
https://www.bloomberg.com/news/articles/2022-01-12/inflation-in-u-s-registers-biggest-annual-gain-since-1982
Wen has to adjust the map to the terrain. When nothing much happens, people tend to get stressed. But for wen there is not much to do but to wait for the demand to increase, pay dividend and buy back stocks.
Hi Aged, just to add that the game changer for onshore/nearshore is the proposed Uganda and Kenya export gas pipelines along with the HV SADAC power grid. Both of these are game changers if completed. One is direct export gas sales (TPDC forecast 1BCF per day) and the other Gas to power export.