PRESS RELEASE 10 April 2017
WENTWORTH RESOURCES LIMITED ("Wentworth" or "the Company")
Operational Update
Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company, is today providing an update to shareholders.
We are pleased to announce that demand for the Company's discovered gas reserves from Mnazi Bay, Tanzania is firming up with current gross volumes being maintained within the previously guided range of 40 - 50 MMscf/d and first quarter production averaging 43 MMscf/d. As expected, Tanzania Petroleum Development Corporation ("TPDC") commenced gas delivery to a new industrial customer, Goodwill Tile Factory in the first quarter demonstrating demand growth from the industrial sector which is expected to increase throughout 2017 as Dangote Cement begins using gas for power generation. We will continue to update the market as these new sources of demand materialize. So far in 2017, TPDC has settled in full the November 2016 and December 2016 invoices that were outstanding at the year end, and has also settled a 2015 invoice for line fill gas volumes. In addition, we have received payment from Tanesco for five months of outstanding invoices. Combined cash receipts totalling $4.9m, net to Wentworth, have been primarily used to settle outstanding amounts that were due to the Operator, Maurel et Prom. As part of our Gas Sales Agreement with TPDC, payment guarantees are in place which can be utilized, if determined necessary, should payments from TPDC be excessively delayed.
In relation to Wentworth's appraisal activities in northern Mozambique, the Company is pleased to report that the reprocessing of approximately 1,000 km of existing seismic data is complete, interpretation is being finalized and results from the Tembo-1 discovery well have been fully analyzed. The Company is now working on advancing a farm-out process with a view to securing an industry partner to jointly drill an appraisal well in 2018. We will update the market as material developments on this asset occur.
The latest version of our Corporate Presentation can be found on our website at www.wentworthresources.com.
Geoff Bury, Managing Director, commented:
"We are pleased to see gas demand stabilizing in Tanzania and that Mnazi Bay gas is now being delivered to a new industrial customer, with more customers expected to follow. Together with our development partners, the Company is also currently developing and pursuing opportunities to increase the current demand for the Mnazi Bay gas. In Mozambique, the completion of the reprocessing of the seismic and interpretation of the results confirms our belief in the potential of the Tembo gas discovery and we are very excited about being able to advance this world class discovery through securing an industry partner."
-Ends-
| Enquiries: | ||
| Wentworth | Geoffrey Bury, Managing Director | gpb@wentworthresources.com +1 403 993 4450 |
| Lance Mierendorf, Chief Financial Officer | lance.mierendorf@wentworthresources.com +1 403 680 8773 | |
| Katherine Roe Vice President Corporate Development & Investor Relations | katherine.roe@wentworthresources.com +44 7841 087 230 | |
| Crux Advisers | Investor Relations Adviser (Norway) | +47 909 808 48 |
| Carl Bachke | ||
| Stifel Nicolaus Europe Limited | AIM Nominated Adviser and Broker (UK) | +44 (0) 20 7710 7600 |
| Callum Stewart | ||
| Ashton Clanfield | ||
| FirstEnergy Capital | Broker (UK) | +44 (0) 20 7448 0200 |
| Hugh Sanderson | ||
| FTI Consulting | Investor Relations Adviser (UK) | wentworth@fticonsulting.com +44 (0) 20 3727 1000 |
| Edward Westropp Kim Camilleri | ||
About Wentworth Resources
Wentworth Resources is a publicly traded (OSE:WRL, AIM:WRL), independent oil & gas company with: natural gas production; exploration and appraisal opportunities; and large-scale gas monetisation initiatives, all in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique.
Cautionary note regarding forward-looking statements
This press release may contain certain forward-looking information. The words "expect", "anticipate", believe", "estimate", "may", "will", "should", "intend", "forecast", "plan", and similar expressions are used to identify forward looking information.
The forward-looking statements contained in this press release are based on management's beliefs, estimates and opinions on the date the statements are made in light of management's experience, current conditions and expected future development in the areas in which Wentworth is currently active and other factors management believes are appropriate in the circumstances. Wentworth undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless required by applicable law.
Readers are cautioned not to place undue reliance on forward-looking information. By their nature, forward-looking statements are subject to numerous assumptions, risks and uncertainties that contribute to the possibility that the predicted outcome will not occur, including some of which are beyond Wentworth's control.These assumptions and risks include, but are not limited to: the risks associated with the oil and gas industry in general such as operational risks in exploration, development and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the imprecision of resource and reserve estimates, assumptions regarding the timing and costs relating to production and development as well as the availability and price of labour and equipment, volatility of and assumptions regarding commodity prices and exchange rates, marketing and transportation risks, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in applicable law. Additionally, there are economic, political, social and other risks inherent in carrying on business in Tanzania and Mozambique. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. See Wentworth's Management's Discussion and Analysis for the year ended December 31, 2016, available on Wentworth's website, for further description of the risks and uncertainties associated with Wentworth's business.
Notice Neither the Oslo Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed this press release and neither accepts responsibility for the adequacy or accuracy of this press release.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Attachments: Attachments:
