Wentworth Resources, the independent, East Africa-focused natural gas company, has announced an operational update ahead of its Annual General Meeting (AGM). The company said production over the period from 1 January to 31 May 2020 averaged 58.2 MMscf/day (gross).
This period covers the traditional rainy season when hydroelectric power displaces natural gas-powered electricity generation, as well as the decreased industrial and consumer demand as a result of the temporary Government restrictions put in place to reduce the spread of COVID-19.
Demand in H2 2018 and H2 2019 was c.12% higher than H1 2018 and H1 2019, respectively. Given this historical context, the expected rebound in industrial customer demand from the lifting of COVID-19 restrictions, as well as the pick-up in volumes in June 2020, management expects a significant increase in natural gas demand in H2 2020. With no operational disruptions due to COVID-19, the existing well stock at Mnazi Bay is strongly positioned to meet this expected surge in demand.
As previously announced, the Mnazi Bay JV Partners have agreed to a limited 2020 firm work program totalling approximately US$4.6M net to Wentworth. This program will ensure that Mnazi Bay maintains well integrity and is primed to support the growing in-country demand.
Source: PetroleumAfrica via CrudeMix