(Sharecast News) - Tanzania-focussed natural gas producer Wentworth Resources updated the market on its operations on Wednesday, reporting that along with its joint venture partners it was continuing to realise strong production rates throughout 2022, after record production in 2021.
The AIM-traded firm, which was holding its annual general meeting, said it had recorded an average production rate of 92 million standard cubic feet per day for the year to date.
It said the five producing wells in the Mnazi Bay field, and the associated joint venture-operated facilities, continued to perform well and without issues.
Additionally, the reductions in natural gas demand typically seen during the wetter months of April and May were "less severe and shorter" compared to previous years.
The company said its production guidance for the year, provided in January, remained unchanged at between 75 million and 85 million standard cubic feet per day.
Wentworth said the government of Tanzania remained "positive" in its recent announcements over their willingness to progress and promote projects of national interest, with those positive actions expected to continue to promote further growth potential for the Tanzanian economy.
With the firm's recent agreement to acquire Scirocco Energy's 25% interest in the Ruvuma production sharing agreement, Wentworth reported that work on the 338 square kilometre 3D seismic, over the discovery and potential development area, was progressing "positively", and was intended to provide data critical to the development of the field and to optimise further drilling locations.
The operator, ARA Petroleum Tanzania, had indicated that the Chikumbi-1 well would be drilled following the completion of the seismic programme, and that first gas from the project was possible by late 2024, following the award of a 25-year development licence and construction of a pipeline connecting the field to the Madimba gas processing facility within the Mnazi Bay licence area.
"I am delighted that Wentworth has made such a strong start to the year with production, supporting our full year guidance and providing the confidence to announce a further dividend increase and maintain our attractive yield, one of the highest in the independent exploration and production sector," said chief executive Katherine Roe.
"Mnazi Bay continues to provide Tanzania with approximately half of the country's natural gas demand and our contribution to the country's growth will be further enhanced by our recently announced acquisition of a 25% stake in the nearby Ruvuma gas development project.
"Ruvuma is a transformational transaction for Wentworth and represents an attractively priced, low risk entry into a high growth opportunity which cements our position as a leading supplier of domestic gas to Tanzania."
At 1131 BST, shares in Wentworth Resources were up 1% at 25.25p.
Reporting by Josh White at Sharecast.com.
