(Alliance News) - Wentworth Resources PLC on Monday said its average production has hit a record high, as it targets further drilling in 2024.
The Tanzania-focused natural gas production company's average daily production during the year-to-date was 106 million standard cubic feet per day, higher than its annual average guidance of between 90 and 100 million cubic feet. It noted that these are record production levels for Mnazi Bay.
The company said the strong production levels highlight "the quality of the Mnazi Bay asset".
Wentworth, however, noted that revenue is "substantially lower" relative to its production levels, due to historic cost pools being depleted in the second quarter. It added that revenue is expected to remain at a lower level into 2024, until planned reinvestment into Mnazi begins.
Looking forward, the firm said it intends to drill two further wells in 2024 and add compression to its gas production facility at Mnazi. The work will be funded from existing cash.
The company also noted that the conditions of its proposed acquisition by Maurel & Prom SA have yet to be satisfied, noting that there can be no certainty that they will be before the long stop date. IT said it is prepared to extend the date.
Chief Executive Katherine Roe said: "We thank shareholders for their patience and support during the extended period of implementation of the proposed M&P Acquisition. The board continues to work for a positive resolution of the acquisition before the long stop date of 31 December 2023. In the event that the acquisition lapses, we will consider as an immediate priority the making of significant dividend distributions with respect to FY 2022 and 2023.
Wentworth shares fell 8.6% to 24.00 pence each on Monday afternoon in London.
By Harvey Dorset, Alliance News reporter
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