Wentworth Resources Plc : Corporate and Operational Update
15 November 2018
WENTWORTH RESOURCES PLC
("Wentworth" or the "Company")
Corporate and Operational Update
Wentworth, the Oslo Stock Exchange (OSE:WEN) and AIM (AIM:WEN) listed independent, East Africa-focused oil & gas company, today provides both a Corporate and Operational Update.
Further to the 14 October 2018 RNS, the Oslo Stock Exchange has approved the delisting application made by Wentworth as of 14 November 2018. The Company will be delisted from the Oslo Børs on 14 February 2019 with the last day of trading being 13 February 2019. The Company will in due course publish further information about the delisting relevant for shareholders of the Company whose Securities are registered in the Norwegian Central Securities Depository and traded on the Oslo Stock Exchange.
The Company is pleased to inform shareholders that payments received in October 2018 for gas sales generated from the Mnazi Bay Concession totaled $3.78 million net to Wentworth. Payments were received from both Tanzania Petroleum Development Corporation ("TPDC") and Tanzania Electric Supply Company Limited ("TANESCO") for one month's gas sales to TPDC and one month's gas sales to TANESCO.
The Company also reports that gross production volumes during October averaged 82 MMscf/d following September average production volumes of 83 MMscf/d. September and October 2018 production volumes were lower than normal due to planned slickline well activities on Mnazi Bay, in addition to repair and maintenance operations associated with the Kinyerezi Power Facilities and extension of a feeder connection to customers in Mkuraganga.
A return to production levels closer to 90 MMscf/day are expected during the second half of November 2018, with the Company likely to exceed the previously guided average for 2018 of 65 - 75 MMscf/d.
Since commencement of production into the new Tanzanian trans-national pipeline system in August 2015 and subsequent regular receipt of payments from TPDC and TANESCO, the Joint Venture Partners have been consistently recovering pre-agreed allocations of the TPDC long-term receivable. As a result of stabilised production and consistency of payments, historically incurred operating expenses within the cost recovery pool (and certain joint-exploration expenditures) have now been fully recovered. The Operator's exploration costs are next in line for repayment, commencing with the Ziwani-1 Exploration well and associated 3D seismic costs.
Pursuant to a 2009 farm-out agreement entered into between Artumas Group Inc ("Artumas"), Cove Energy Tanzania Mnazi Bay Limited ("Cove Energy") and Les Establishments Maurel et Prom ("Maurel et Prom"), the 2012 Ziwani-1 well and associated 3D seismic costs were paid by Maurel et Prom and Cove Energy as part consideration for their entry into the Mnazi Bay asset, thereby fully carrying Artumas (the "Wentworth Carry"). The net Wentworth Carry is $8.4 million.
Pursuant to the Joint Operating and Farm-Out Agreements, the Wentworth Carry is recovered by Maurel et Prom, post operating, but prior all exploration and development expenditures from cost gas sales. Wentworth expect Maurel et Prom to fully recover the Ziwani-1 well and associated seismic costs from their adjusted allocation of the TPDC receivable over the next nine months. The Company notes that ongoing operating costs continue to be recovered in preference to all other costs, minimally offsetting the impact of the prioritised recovery of the Wentworth Carry.
Eskil Jersing, Chief Executive Officer, commented:
'I am delighted that the Oslo Stock Exchange has approved our delisting application, with no restrictions. We are highly appreciative of the support of our Norwegian investors through this period of transition and hope that will continue through this next phase of growth for Wentworth.
The scheduled repairs and maintenance on Mnazi Bay and associated infrastructure, were completed on time and production levels are expected to return to around 90 MMscf/d in the second half of November. The Joint Venture partners continue to work with all stakeholders on the four key value catalysts, referred to in the 3 October 2018 RNS, to ensure that all parties derive maximum value from the Mnazi Bay Field.
Our Mnazi Bay asset continues to outperform in a surging, demand led landscape and the Company has made great strides in moving to a simpler Corporate platform through 2018. We look forward to updating investors on our continued progress in due course.'
| Enquiries: |
| Bob McBean, |
Chief Executive Officer
Chief Financial Officer
| email@example.com |
+44 7717 847623
+44 7841 087 230
|Stifel Nicolaus Europe Limited|| AIM Nominated Adviser and Broker (UK) |
|+44 (0) 20 7710 7600|
|Peel Hunt LLP|| Broker (UK) |
|+44 (0) 20 7418 8900|
|Vigo|| Investor Relations Adviser (UK) |
|+44 (0) 20 7930 0230|
About Wentworth Resources
Wentworth Resources is a publicly traded (OSE: WEN, AIM: WEN), independent oil & gas company with natural gas production; exploration and appraisal opportunities, all in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique.
The information contained within this announcement is deemed by Wentworth to constitute inside information as stipulated under the Market Abuse Regulation (EU) no. 596/2014 ("MAR"). On the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
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, 2017, available on Wentworth's website, for further description of the risks and uncertainties associated with Wentworth's business.
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.