PRESS RELEASE 19 July 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.
Further to the Operational Update in June 2017 including an update on the Company's Mnazi Bay asset in Tanzania, Wentworth is pleased to report that further payments have been received from Tanzania Petroleum Development Corporation ("TPDC") and Tanzania Electric Supply Company Limited ("TANESCO") totalling $1.2 million net to Wentworth, bringing the total cash received for invoiced gas sales to $7.9 million in 2017. Since 31 March 2017, receivables from TPDC have remained consistent at four months and receivables from TANESCO have improved from thirteen months to eight months. The Mnazi Bay Partners continue to work closely with the Government of Tanzania to settle the remaining outstanding invoices.
As expected, daily production volumes during the rainy months of April and May were impacted by the use of hydroelectric power. However, since the end of the rainy season, gas demand has increased with June volumes averaging 45 MMscf/d bringing the average for Q2 to 31 MMscf/d. Furthermore, the Company has experienced a temporary increase in volumes since the start of Q3 due to maintenance work elsewhere in the pipeline system with July month-to-date averaging 71 MMscf/d. We maintain our guidance for 2017 averaging between 40 - 50 MMscf/d.
In relation to the recent legislative changes in Tanzania and the introduction of three new bills relating to the mining and oil & gas sectors, the Company has undertaken a review of these new laws to determine their implications on the Company's Tanzania operations. Based on our current understanding of this new legislation and given the existing terms and conditions of our relevant agreements we do not anticipate any material impact on our existing operations.
The Company will report Q2 results on 10 August 2017 and will be holding a conference call for analysts and shareholders that day.
Geoff Bury, Managing Director, commented:
"We are pleased to have received further payments from TPDC and TANESCO which demonstrates their commitment to settle invoices as soon as practicable. The payments received year to date have enabled the Company to meet its obligations and we continue, along with our Operator, Maurel et Prom, to work with the Government to resolve the payment delays and clear all arrears. It is very encouraging to see production volumes increase post the end of the rainy season and we remain confident in achieving our production guidance for the year."
-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.
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