AIM listed independent, East Africa-focused natural gas company Wentworth Resources PLC (LON: WEN) issued a positive update and guidance report on Tuesday.
The update told investors that it it was on target to be debt-free by January 2020, and that it also remained on track to fall within its full-year average daily Mnazi Bay production range of 68-72 million cubic feet.
This appears increasingly likely. Although second quarter production averaged 65.6 mmcf per day, year-to-date production stands at 70.35 mmcf per day and the daily average during Q3 was 77.93 mmcf.
Despite output being up in the third quarter, its full potential was limited by the MB-2 well being closed due to a flowline problem to the MB-3 cluster. In the meantime, partners on the Mnazi Bay project are planning to recomplete the MB-4 well, which will see production averages bounce to 90 mmcf per day from December.
The Company expect output to be greater in 2020, when the flowline reconnecting the MB-2 well is reconnected.
Wentworth Resources comments
Speaking on the Company’s update, Interim CEO and CFO, Katherine Roe, stated,
“We have established a highly robust operational and commercial foundation for the business. We are working well with our JV Partners to ensure we achieve optimal field management and are fully aligned with our Operator on remedial works for MB-2 and recompletion plans for MB-4. Stable production from the field to meet existing and growing demand is allowing the JV Partners to anticipate higher production levels into 2020 and we will look to provide full year 2020 production guidance early in the new year. Receivables are now the lowest the JV Partners have experienced since production into the transnational pipeline began. With a near debt free position, growing cash balance, a maiden dividend paid last month and a simplified corporate platform, Wentworth is in robust financial health and well positioned to meet the increasing demand we foresee in Tanzania.”
After a slight drop, the Company’s shares have rallied 7.83% or 1.35p on Tuesday, up to 18.60p per share 19/11/19 13:16 GMT. Peel Hunt reiterated their ‘Buy’ stance on Wentworth Resources stock, their dividend yield stands at 2.37% and their market cap is £35.43 million.