Malcy’s Blog – Wentworth, Eco, President

A flash blog today as I’m in transit to visit Pharos but some comments on today’s announcements.

By Malcolm Graham-Wood

Wentworth Resources

Todays update shows 2019 FY average production from Mnazi Bay of 70.29 MMscfd with 2020 guidance of 65-75 MMscfd. Having repaired the flow line and MB-4 been recompleted the facility now has the operational flexibility to produce at sustained rates of >100Mmscfd so the guidance truly is on the conservative side but nothing wrong with that in East Africa.

Overall WRL enters the new decade in pretty good nick, they have cleared the debt with last weeks final payment and with $13.5m of cash they are in a strong position to return cash to shareholders via the dividend policy established last year. Reserves are string with Wentworths share of gross 2P reserves of 95.1bcf with a post tax NPV 10 of $118.6m. New CEO Katherine Roe describes the announcers being ‘honest, robust and conservative ‘ and who am I to disagree?

Eco (Atlantic) Oil & Gas

The long awaited CPR on the Orinduik Block is released this morning which shows a significant, 29% increase in GPR to 5,141 Mmboe (3,981 in March 2019). There are 22 prospects including 11 leads in theUpper Cretaceous with the majority having a30% or higherCOS. Based on the light oil discovery at Kanuku block south of Orinduik they have identified two specific targets at Amala/Kumaka and latuk-D both of which have having in excess of 725 Mmboe each.

Eco has cash and is fully funded for its share of whatever drilling programme is established in the operations committee meets next month, those who think that Tullow may be a drag should realise that Guyana is probably their best bet this year.

Whilst not entirely off, the Tertiary, is has become obvious that the richer Cretaceous lighter oils discovered to the south at Kanuku having been through the pathway from the source kitchen to the north and through theLiza sands should prove more tempting.

I am confident that despite the set backs last year thatEco a dit’s partners will in due course, share significant discoveries from Guyana and that patient shareholders will be rewarded.

President Energy

A good start to 2020 after ‘unforeseen challenges ‘ last year but President did put in a ‘commendable’ performance with first oil from EV and field facilities at Puesto Prado as well as the gas plant at Las Bases being recommissioned.

Despite all the problems performance was indeed resilient and fcf and EBITDA were ‘notable positive kpi’s complemented by the efficiencies and cost savings that have been made’ no surprise with Peter Levine running the show. With Trafigura now an active strategic partner things are looking much more exciting for President this year.

Malcolm Graham Wood 300x225 - Malcy’s Blog – Wentworth, Eco, President

By Malcolm Graham-Wood

Source Link www.malcysblog.com/2020/02/wentworth-eco-president/

Website Link www.malcysblog.com

Disclaimer: Malcy’s Blog is provided for general information about the international oil and gas industry and the companies that operate within it. It does not constitute investment advice and Malcy does not buy or sell shares, warrants or bonds in any company written about within the blog. Information is taken from publicly available sources and any comment is that of the author who does not take any third party comment in the publication.


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