Tanzania-focused gas producer Wentworth Resources (WRL:AIM), a running Play of the Week, gains 7.1% to 33.75p as it receives a first payment for delivery from its Mnazi Bay field into a new trans-national pipeline.
Wentworth is one of the few year-to-date risers in a battered E&P sector. It is insulated from oil price volatility having agreed a regulated price of $3.07 per thousand cubic feet for its gas. It has also delivered operationally by getting Mnazi Bay successfully on stream.
Mnazi Bay gas is currently being used to generate power in Dar es Salaam at the existing Ubungo-II and Symbian power plants, as well as at the new Kinyerezi-I power plant. Production volumes into the pipeline are currently at 33 million cubic feet per day (mmcfpd) from three wells on a restricted flow basis, and are expected to reach 80 mmcfpd once all of the generators at these three power plants are fully operational, expected in Q4 2015. A gross payment of $3.8 million has been received for gas delivered in October.
Cantor Fitzgerald reiterates its buy recommendation and a 57p price target and comments: 'With key strategic partners in TDPC and Maurel et Prom (MAU:EPA) providing financial and technical input against a backdrop of potentially transformational exploration upside, Wentworth’s current share price represents compelling value in our view.'