15th Nov 2016 11:00
LONDON (Alliance News) - East-Africa focused oil and gas company Wentworth Resources Ltd said Tuesday that its gas production dropped in the third quarter of the year, but that it anticipates a recovery in the remainder of the year.
AIM-listed Wentworth booked a pretax loss of USD900,000 for the third quarter ended September 30, narrowed from USD1.3 million in the same period the year before. Gas sales revenue in the quarter was USD2.4 million, increased from USD970,000 year-on-year.
Wentworth said its average gross daily gas production for the third quarter from its producing operations in Tanzania was 34 million standard cubic feet of gas per day, down from 51 MMscf/d during the second quarter.
The company said the decline in production was contributed to by the suspension of operations at the Symbion gas-fired power plant as a result of a dispute with the Tanzania government.
"Q3 2016 gas sales volumes were impacted by a combination of factors that were primarily influenced by contractual issues beyond the control of the Mnazi Bay joint venture partners. We anticipate base demand for the remainder of 2016 and all of 2017 to be between 40 and 50 MMscf/d with possible significant increases originating from gas sales to industrial consumers and resumption of operations at the idle gas-fired Symbion power generation plant," said Geoff Bury, managing director of Wentworth.
Shares in Wentworth were down 9.7% at 22.80 pence Tuesday morning.
By Adam Clark; [email protected]
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