Malcy14 Nov 2017 12:27
Wentworth Resources
As I found out when meeting with WRL in Cape Town recently, things are really beginning to pick up for the company and I suspect that this may be more than just one to watch. Today they provide 3Q results which in themselves are relatively meaningless but production numbers are positive and the direction is important. 60 MMscf/d from Mnazi Bay in Tanzania is the strongest in the company�s history and it puts them in a �dominant� position in the Tanzanian market place which has significant demand from power generators and industrial users. In a market that has a reduced supply of gas by peers, yet has demand coming through from K-2 and the Dangote Cement plant (which should add between 10-60 MMscf/d by the end of next year) the economics stack up pretty well.
Regarding getting paid things are also looking up, admittedly receivables have �stabilised at 4-5 months� but TPDC are paying more and overall payments in the quarter were $5.18m and indeed a payment of $2.6m has recently been initiated by TPDC for the October invoice. Speaking with Vice President, Corporate Development, Katherine Roe today I got the impression that the movement is in the right direction and that the TPDC were making payments more regularly and of a bigger size than before.
Re the company�s oil and gas concession in Mozambique things are also moving at a pace with drilling planned at Tembo-2 for 2Q 2018. I wrote in detail about this whilst in Cape Town but the prospects here are significant and with the distinct possibility of one or more industry partners joining WRL there is further upside potential. 2018 looks like being a landmark year for Wentworth and I for one will be watching most carefully.
Sign In
Follow the stocks
