First-quarter results for East African driller Wentworth Resources (WRL) provided investors with two sets of concerns. While field production from Mnazi Bay, the company's main gas asset in Tanzania, was in line with guidance, offtake partner and state oil company TDPC is struggling to make its payments. In fact, outstanding monthly invoices have doubled to four since the end of 2016, increasing receivables by 40 per cent to $9.4m (£7.3m) and forcing the Aim group into a $5.5m private placement earlier this month.
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In addition to the strain on cash flows, Canaccord suggests that the government's own working capital issues may mean next year's expected step change in power plant gas demand could slip.
