Member Info for alph

https://www.youtube.com/watch?v=6AuoUiu88vY

2019-10-02 08:52 ET - News Release

Mr. Nigel Friend reports

ORCA EXPLORATION PROVIDES OPERATIONAL UPDATE

Orca Exploration Group Inc. has provided the following operational update on its current activities in Tanzania.

Orca's additional gas sales increased to 64 million standard cubic feet a day (MMscfd) in August, 2019, taking the average for the year to date to 60 MMscfd (eight months ended Aug. 31, 2018: 37 MMscfd). On Sept. 25, 2019, an agreement was reached with the Tanzania Petroleum Development Corp. (the TPDC) to increase the maximum daily quantity of additional gas that can be supplied under Orca's gas sales agreement with the TPDC to 30 MMscfd (from 20 MMscfd). This additional gas will be processed and transported to Dar es Salaam through the National Natural Gas Infrastructure (NNGI).

The company is actively pursuing new sales opportunities in Tanzania. The company is assisting the Tanzanian government in evaluating the potential to supply large volumes of natural gas to strategic partners in the East African region. Supplying those strategic partners would require Orca to develop the northern section of the Songo Songo field (SSN) where there was a natural gas discovery in 1974. In addition, the company is in discussions with commercial fuel distributors and other potential consumers to expand its existing compressed natural gas business.

Orca remains well placed to deliver additional volumes to the proposed new 185-megawatt gas-fired generation facility at Kinyerezi 1, via the NNGI. Whilst efforts to progress the project continue, Orca believes the plant will not be operational before mid-2020, as opposed to late 2019.

Orca has continued to optimize the refrigeration system at the Songas facility and final performance testing is expected to commence during October. This follows recent adjustments to operational settings on the Songas facility that together are expected to see processing capacity return to approximately 100 MMscfd.

Concurrently, Orca is nearing completion of the front-end engineering and design for compression for the Songas facility. Refrigeration and compression will work in harmony to address declining reservoir pressure to ensure maximum production levels can be sustained, subject to demand, through to the end of the PSA licence in 2026. Alongside this, Orca is developing plans to work over three onshore wells to address corrosion, sand and water issues. Successful workovers are expected to return around 21 MMscfd of additional production potential from the field, at an estimated cost of $15-million (U.S.).

Nigel Friend, chief executive officer of Orca, commented: "The government of Tanzania is actively looking at ways to utilize its significant indigenous natural gas resources to fuel industrial and economic growth for the benefit of the country and the wider East African region. We are encouraged by this increased activity and, in conjunction with our partner, TPDC, are evaluating the

https://af.reuters.com/article/investingNews/idAFKBN1W11PC-OZABS

StoneFold; do you have a link which lists the most read RNS's?

If this doesnt increase sp, what will help? Isnt there a least one among top 20 that could give a decent push?

This means that WEN/M&P will be paid for at least 68 mmscf/d until 2031, regardless of rainy season, maintenance work at Kinyerezi etc..

About as expected, isnt it?

Average production of 90 mmscf/d in August. If they keep that track the rest of H2, the average production will be more than 75 mmscf/d for 2019.

You would might expect some more interest for a share that pay dividend, but WEN is WEN.. :-)

Dangote powers cement plant in Tanzania with gas turbines
By Damilare Famuyiwa - August 26, 2019
https://nairametrics.com/2019/08/26/dangote-powers-cement-plant-in-tanzania-with-gas-turbines/

The management of Dangote Cement has made known that its cement plant in East African country, Tanzania now runs on gas turbines, just as it announced that its Pan African sales increased by 2.7% to nearly 4.7 million tons for the 6-month ended Sunday, June 30, 2019.

Knowledgebase: The gas turbine is the engine at the heart of the power plant that produces an electric current. It is a combustion engine that can convert natural gas or other liquid fuels to mechanical energy. This energy then drives a generator that produces electrical energy. It is electrical energy that moves along power lines to homes and businesses.

To generate electricity, the gas turbine heats a mixture of air and fuel at very high temperatures, causing the turbine blades to spin. The spinning turbine drives a generator that converts the energy into electricity.

The gas turbine can be used in combination with a steam turbine — in a combined-cycle power plant — to create power extremely efficiently.

Is Dangote Cement’s usage of gas turbines laudable? Other manufacturing firms may consider following Dangote Cement’s path, as the usage of gas turbines is gaining popularity.

Lower operational cost is one of the primary reasons why gas turbines have gained so much popularity. When compared with other low-carbon emission alternatives like nuclear and renewable energy, the cost involved in the initial operation of gas turbines is quite low. Therefore, along with being cost-effective, gas turbines are also one of the best options for cleaner power generation.

With stringent carbon emission regulations, volatility in fuel costs, as well as an emphasis on high performance at low costs, gas turbines have emerged as the most viable option. Not only are they cheap, but gas turbines are also durable and efficient with less operational failure and downtime. In fact, gas turbines manufacturers have created highly durable turbines that require less frequency of service.

I read about the same issue yesterday.
Tanzania Electric Supply Company (Tanesco) is working with General Electric (GE) to find a way forward for the troubled 185MW expansion of the Kinyerezi I gas power plant. Delays became apparent last year when engineering, procurement and construction (EPC) contractor Jacobsen Elektro told African Energy that only two of the four turbines were on site and a six-to-eight-month delay was expected.
https://www.africa-energy.com/article/tanzania-jacobsen-collapse-threatens-kinyerezi-construction

I also read in a local Norwegian newspaper that they face the same problem in a reginal project in Norway. Due to financial problems/poor liquidity.

Strange that this has not been communicated any further.

https://demo.dailynews.co.tz/news/2019-08-085d4bb9c8d31c1.aspx

Malcy has a note about WEN today. Everything is already well presented by WEN before, except last paragraph, which is his own thoughts.

The company is reducing debt and the last payment is due in January 2020 and the solid revenue from MB has given the board the confidence to pay a maiden dividend this summer. As for potential on the acquisition front I get the impression that one of the best investments is on their own doorstep so when the time is right the company may considering upping their stake at Mnazi Bay by taking out Maurel & Prom and taking over the operatorship, this would be a particularly good use of capital into the bargain.

I know that over the last few months they have looked at a number of potential add ons and even the odd offer but so far nothing has come of an asset or company deal. Wentworth is in good nick, it is paying down debt and making a capital return from its solid producing asset at Mnazi Bay at which its best use of capital may be by increasing its position in the project. Shareholders should keep the faith…

https://www.malcysblog.com/2019/08/oil-price-zenith-rockrose-dgo-wentworth-and-finally/

What do you think? They have said they wanted to "spread the eggs" for 1,5 year now. Taking over M&P' part isnt exactly risk diversification.

Swala has offerd CAD 8,25 for Orca (Songo Songo) shares. http://www.swalaoilandgas.com/documents/Revised-Proposal-For-Orca-Exploration-Group-Inc.pdf

Excellent news!

Dividend Policy

"Wentworth (AIM: WEN), the AIM listed independent, East Africa-focused oil & gas company announces the implementation of a dividend policy.

The Company confirms a dividend policy to shareholders and plans to pay an ordinary dividend based on the Company's free cash flow generation, whilst ensuring an appropriate balance between investment in its business and operating within its debt and banking facilities.

It is expected that a maiden dividend will be declared with the interim results to 30 June 2019, expected to be released on 3 September 2019, and will be payable semi-annually going forward, split between the interim and final dividend (1/3 : 2/3). A final dividend for the year ended 31 December 2019 will be determined by the Board and is expected to be declared with the full year results, subject to shareholder approval."

What could we expect for the first payment? Is a penny too much to hope for?

90% completed.
https://www.thecitizen.co.tz/news/Kinyerezi-I-power-project-reaches-90pc-of-implementation--/1840340-5184466-11e3f5l/index.html

https://polaris.brighterir.com/public/wentworth_resources/news/rns/story/xl5lj7w

Wentworth (AIM: WEN), the AIM listed independent, East Africa-focused oil & gas company announces the following operational update.

Mnazi Bay Operations

Average production to 24 June 2019 was 65.6 MMscf/d, gross, impacted in Q2 2019 by increased hydro-electric supply during the rainy season. The wet season is now over and output from the hydro-electric power plants is starting to diminish.

As previously announced, the Company expects to see existing demand underpinned and set to increase over the second half of 2019, due to:

Repairs to turbines at Ubungo II plant now complete;
Ongoing power evacuation problems at the Kinyerezi power stations now resolved by completion of the K-1 transmission station in May 2019;
Kinyerezi-1 and Kinyerezi-2 power stations are running at near full capacity and are expected to continue throughout H2 2019;
Demand from the Dangote Cement plant (power and clinker needs) is expected to reach up to 20 MMscfd in H2 2019; and
The new Kinyerezi-1 Extension TANESCO facility is expected to begin its commissioning phase starting Q4 2019, gradually bringing on-stream demand of up to 30 MMcf/d into 2020.
Production has additionally been impacted by additional gas supplied into the transnational pipeline from the SongoSongo field, following the signing of a new Gas Sales Agreement (“GSA”) with the government of Tanzania in May 2019 by Pan African Energy Tanzania Limited (“PAET”). PAET are currently supplying c.20 MMScf/d into the National Natural Gas Pipeline (“NNGP”) and the Company anticipates that this additional supply will continue throughout H2 2019.

As a result of the above, full year average daily Mnazi Bay production for 2019 is now expected to be in the range of 60 to 75 MMscf/d.

As previously announced and planned, routine workover and pressure monitoring will continue throughout H2 2019 in order to optimise the performance of the field.

Thanks to consistent monthly payments that continue to be received from both Tanzanian Petroleum Development Company (“TPDC”) and Tanzania Electric Supply Company Limited (“TANESCO”), the Company continues to deleverage its balance sheet and comfortably meet its debt obligations, which now stand at $5 million. The Company anticipates being debt free in Q1 2020 with a final debt repayment in January 2020; cash balance at 31 May 2019 was $10.6 million.

Eskil Jersing, CEO, commented:

“We have adjusted our 2019 production guidance to take into account the additional 20 MMscf/d supplied into the NNGP from the only other in-country supplier, due to a new GSA executed post our 11 January 2019 guidance. Demand outlook continues to be strong and the Mnazi Bay joint venture partners continue to be well placed to supply that demand into the later part of 2019 and beyond.

“Regular, timely receipt of invoices enables us to repay our existing term loan whilst building cash and benef

Tanzania;
"offshore company" also refer to international companies which have their HQ outside the country they operate in. So both AEX&WEN should be considered offshore companies.

They are saying all the right things, but when will they act according to it?

https://www.dailynews.co.tz/news/2019-06-015cf23102692e0.aspx

Wentworth Resources (WEN), which has assets in Mnazi Bay, TZ, has mentioned for several months that they are looking for the right company for an M&A. Some Norwegian Wentworth Resources retailers has mentioned that SDX could be a possible partner.

SDX operates in Egypt&Marocco, which WEN has pointed out as interesting countries to spread their risk. https://wentplc.com/wp-content/uploads/2019/05/2019-03-29-IRpack-V1.1.pdf

As WEN, SDX is also undervalued (MC vs NAV). Both companies makes good money.
What makes the idea even more interesting, is that both companies has gone from dual listing to only be listed at AIM in 2019. On top of that, SDX's CEO steps down, and they plan to carry on with CFO as interim CEO.

Both companies are Canadian, and Head of Subsurface&Business Development in WEN, Cameron Snow, had before joining WEN, a similar position in SDX.

Any comments on this? Would you think it would be a smart merger?

AEX certainly have a much larger retailer-base. Which creates much more fuzz and discussions than investment funds in South Africa do. I guess WEN looks grey and boring for them, while they consider AEX a lottery coupon, with a potential amazingly high return.

Amazingly high risk as well, I might add.

Interesting focus you have on this Mick, Tanzania. Of your last 10 posts, 9 of them are about Mick.

What particulary has been wrong about his warnings regarding AEX the last 12 months?

As you can see, he is also critical to WEN, which is of course more than ok - its necessary. Its very dangerous to fell in love with a public traded stock.

Doesnt TPDC (20%) speak the same language..?