Paragon Offshore appoints ISS to drill in Tanzania Songo Songo Island
Paragon M826 can drill to depths of 20,000 ft |
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Paragon M826 can drill to depths of 20,000 ft |
If you want to invest in Tanzania natural gas industry, you right time is now, dont say i will be starting to invest next month or next year, with these massive discovery of potential natural gas reserves, there are lot of opportunities which can help you to move from where you are to where you want to be.
industry. Examples include transportation, shipping and logistics
companies, pipeline companies, construction and rigging companies, drilling and
refining hardware and equipment manufacturers, refiners, and many others.Investing in these
companies is similar to investing in any other company involved in B2B
services, logistics, technology, and the like. Some of these investments don’t
rely on increasing fuel prices to be profitable. For example, pipelines
make money by charging a fee per barrel transported. They’ll make roughly the
same amount regardless of whether fuel prices rise or fall, as long as demand
remains consistent. Final WordsOil and gas are volatile. When you become involved in these ventures, have a healthy respect for the potential risks and be honest with yourself about your own risk tolerance and investment horizons.
Wentworth Resources has reported a $4.5 million loss for the six months ended in June 30th 2015 as second quarter exploration dropped and development capital expenditures increased significantly to $2.31 million and $7.04 million, respectively, compared to $3.69 million and $0.30 million, respectively, in 2014.
The loss is also due to an increase in financing costs as the company raised funds for development in Tanzania including $4.36 million of a credit facility to fund operator cash calls for Mnazi Bay development expenditures
According to financial statements released in Wednesday the working capital is also down to $5.77 million compared to $15.84 million at December 31, 2014
On July 1, 2015 the company successfully completed a private placement and issued 15,412,269 new common shares for cash consideration of $0.50 per share for total gross proceeds of $7.64 million.
According to managing director Geoff Bury the new funds further secure the Company’s balance sheet in advance of generating cash flow once gas sales start in the coming weeks.
“The recent successful equity raise completed on July 1 demonstrates confidence in our long-term investment strategy in East Africa. These new funds further secure the Company’s balance sheet in advance of generating cash flow from natural gas sales to the new government owned transnational pipeline in Tanzania. With discussion in regards to the payment guarantee agreement at an advanced stage, the Company looks forward to bringing gas on stream in the weeks ahead. We wish to thank shareholders for their continued support during this exciting period in the Company’s history,” he said
Wentworth Resources has 39.925 percent participating interest in exploration and 31.94 percent in production while the operator Marel et Prom has 48.06 percent and 60.075 percent participating interest in exploration and production respectively. The Tanzania Petroleum Development Corporation will also acquire a 20% production interest during production.
Tanzaniapetroleum’s core objectives include the acquisition of latest information on Tanzania’s exploration and production activities,gain exposure to the latest trends and development in the East African market and to keep abreast of geopolitical,industrial and technological developments.
Articles 10 and 109 of 2010 mining Act Stipulate that exploration firms must make provisions for local ownership in areas where they are active.
Therefore as active players in the industry we are committed to act as a check and balance against other players as we move closer to commercial production.
Some of the prevalent concerns include,transparency in revenue management,sharing of royalties with local communities,access to information,environmental degradation and lack of consultation with communities in oil-rich regions.
Lastly is to highlight the secrecy in public sharing contracts that the government has with oil,gas and mining companies.
The writer is an oil and gas analyst.Member of Tanzania Petroleum
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