The Company has an onshore Rovuma basin Domestic gas focused portfolio with producing natural gas reserves and prospective natural gas resources as well as ongoing development and production activities.
Our strategy is to grow the Company beyond our current asset base and deliver shareholder value through asset; free cash flow and net income growth; and ultimately regular dividend or capital returns policies.
We intend to do this through a focused M&A mandate which primarily looks to build from our differentiated capabilities and simpler Corporate and East African platform.
In order to achieve our aspiration to be a mid-cap African focused E&P player, Wentworth will leverage from our:
- Sustained and consistent US$15-20 million/per annum forecast revenues
- Improving balance sheet where we will be net cash in early 2019 and debt free by 2020
- Focus on unlocking value from our core asset Mnazi Bay in Tanzania
- Refreshed Board with a proven track record in creating shareholder value
- Access to capital and strategic support from our deep and strong shareholder roster
- African and UK Market networks and longstanding relations with Host Governments, key stakeholders, Joint Venture partners, NOCs, Regulators, Upstream players and Service providers
- Upstream and Midstream project delivery track record, credibility and value realization experience
- Robust, energised and balanced capabilities across the technical, commercial and financial spectrum
- Ability to move swiftly and decisively to execute on accretive transactions (both corporate and asset) from a simpler corporate transactional platform
In Tanzania, we are pursuing a gas growth strategy underpinned by strong domestic demand fundamentals and our Joint Venture position as the leading domestic gas supplier in country.
Our near-term 2019-20 focus (with Maurel et Prom, the Operator and TPDC our JV partner), is to unlock the latent value potential of our core producing Mnazi Bay asset through four key value triggers to enable “line-of-sight” growth to 130 MMscfd (gross) and beyond:
- Securing a full GSA to move to Commercial Operations Date “COD” declaration. As a result of the COD, the testing and commissioning period will end; and all terms of the GSA will become effective.
- Maintaining the production plateau to comply with the GSA, by focusing on network modifications including upgrading well flowline chokes, together with slickline jobs to open existing perforated intervals and conducting new perforations in unperforated horizons. This is made operationally simpler by the MB-2, MB-3, MB-4 and MS-1X wells having smart well completions, with sliding sleeves.
- A reduction in the contractual optimum pipeline delivery point pressure from 95 bar(g) to 75 or 60 bar(g), which would provide for increased volumes per well, and sustained overall production rates and/or plateau periods from the current well stock, prior to installation of compression facilities. This is technically and operationally realizable, has the potential to extend the production plateau by c. 18 months on a standalone basis and c.42 months including slickline and choke upgrade work. Most importantly it is immediately accretive to asset NAV.
- Renewal of the PSA (Signed in 2004), which will push licence expiration out a further 10 years, until 2041, thereby facilitating the commercial rationale for additional CAPEX to unlock the existing 2C and de-risk the material 3P resource base (c.1.5Tcf unrisked per in-house estimates of the top 20 leads/prospects) on block.