Monday, 11 August 2025

From 80p to £1.35: Rising Gas Prices Supercharge Ntorya’s Valuation Potential

 

Orca’s 2024 realised prices reveal a higher-value demand mix, doubling Aminex’s projected upside in the 14-well scenario.

When we modelled Ntorya’s long-term value earlier this year, our 14-well, 420 MMscfd case used conservative gas prices of $3.50–$5.50/MMBtu. That produced impressive numbers — with some scenarios approaching 80p per share.

But the latest Orca Energy 2024 annual report changes the game. It shows:

  • Gas-to-power: $3.88/MMBtu

  • Gas-to-industry: $8.45/MMBtu

  • Weighted average realised: $4.95/MMBtu

Many of Ntorya’s likely buyers — CNG stations, GTL, fertilizer, LNG trucking hubs — fall into the higher-priced industrial category. Using blended scenarios based on Orca’s real-world data lifts our projections dramatically:

  • 50/50 industrial/power blend = $6.17/MMBtu

  • 70% industrial blend = $7.08/MMBtu

  • 80% industrial blend = $7.54/MMBtu

Applying these to our 14-well, 420 MMscfd case with a 40% effective cash entitlement to Aminex, the implied share price potential jumps from ~80p to as high as £1.35 at standard market earnings multiples.

This isn’t pie-in-the-sky speculation — it’s grounded in realised Tanzanian gas prices from a peer producer and in Ntorya’s planned production profile. With the Mtwara LNG project naming Ntorya as its primary supply source and multiple high-value industrial markets lining up, the revenue mix could lean heavily toward premium-priced sales.

For investors, the takeaway is simple: as the demand mix shifts towards industry and transport, Ntorya’s economics strengthen — and the gap between current market price and intrinsic value widens.

Updated Orca-Based Valuation:

Our original 14-well, 420 MMscfd projections used conservative gas price assumptions of $3.50–$5.50/MMBtu. However, Orca Energy’s 2024 report confirms a weighted average realised price of $4.95, with a $3.88/Mcf gas-to-power rate and an $8.45/Mcf gas-to-industry rate. Applying blended scenarios of $6.17 (50/50), $7.08 (70% industrial), and $7.54 (80% industrial) lifts projected share price outcomes significantly across all market multiples. At the upper end, the industrial-heavy blends more than double the implied valuation compared to our earlier chart, reinforcing the bullish case for Ntorya’s earnings potential as higher-value industrial demand ramps up.