21st May 2014 11:22
LONDON (Alliance News) - Wentworth Resources Ltd said Wednesday exploration capital expenditures in its first quarter rose to USD4.8 million as the firm moves closer to signing an agreement with the Government of Tanzania to conclude a Gas Sales Agreement.
The independent East Africa-focused oil & gas company said first quarter exploration capital expenditures came in at USD4.8 million, compared to USD2.6 million during the same period in 2013. Revenues for the quarter were USD0.2 million, in line with the first quarter of 2013, said the company.
During the quarter the firm said it has continued discussions with the Government of Tanzania to conclude a Gas Sales Agreement to supply Mnazi Bay Concession natural gas to the Mtwara to Dar es Salaam pipeline that is currently under construction. Completion and commissioning of the pipeline is expected during the first quarter of 2015, said Wentworth, which added that no significant issues remain unresolved and that it expects the GSA to be signed in the second quarter of this year.
Also during the quarter, Wentworth said it completed the acquisition of new high resolution 2D seismic data over the two discovered gas fields within the Mnazi Bay Concession and continued with pre-drilling activities in advance of a June spud date for its Tembo prospect within the Rovuma Onshore Concession in Mozambique.
The second well at the project, Kifaru-1, will be drilled immediately following completion of Tembo-1, said the company.
"These wells have the potential to significantly impact the Company's valuation. In Tanzania, pipeline construction is on schedule with no indication of delay of the Q1 2015 expected commissioning and first gas delivery timing. Although it has taken much longer than initially anticipated, all signs point toward an imminent conclusion of a gas sales agreement covering
initial gas supplies from the Mnazi Bay Concession... We are excited about the near term catalysts," said Geoff Bury, Managing Director.
Shares in the company were trading 1.51% higher at 42.125 pence per share Wednesday afternoon.
By Alice Attwood; [email protected]; @AliceAtAlliance
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