Wentworth Resources Plc : Relinquishment of Tembo Block Appraisal Licence ("Tembo")
| PRESS RELEASE |
WENTWORTH RESOURCES PLC
("Wentworth" or the "Company")
Relinquishment of Tembo Block Appraisal Licence ("Tembo")
Wentworth, the Oslo Stock Exchange (OSE: WEN) and AIM (AIM: WEN) listed independent, East Africa-focused oil & gas company announces that further to its announcement dated 3 October 2018, it intends to relinquish the Tembo block with a planned effective date of 30 April 2019 ahead of the end of the current appraisal term on 15 June 2019. The Company will also exit Mozambique, closing its Maputo office and shutting down activities in the Muxara and Palma camps concurrently, in order to focus on its core Mnazi Bay asset in Tanzania and its M&A led growth mandate.
The Tembo Block, which has an area of approximately 2,500 km2 is in northeastern Mozambique, approximately 2,598 km north of Maputo and 120 km southwest of the Mnazi Bay field, in the onshore Rovuma Basin. The block is operated by Wentworth Resources (85%) with Empresa Nacional de Hidrocarbonetos ("ENH"; 15%) as a partner.
The relinquishment of the Tembo block will release the Company from any further appraisal work programme obligations with no material costs foreseen ahead of relinquishment. It is anticipated that the Company's Intangible Assets which are attributable to the Tembo appraisal licence will be written down in full in the current financial year 2018.
Eskil Jersing, CEO, commented:
"We have now completed a thorough technical and commercial review of the company's asset portfolio and determined that our Tembo asset does not provide us with suitable monetisation solutions in keeping with our material growth mandate. We have appreciated the excellent relationships to date with ENH, the National Oil Company of Mozambique, and INP, the National Regulator, and will work hard to ensure an efficient and smooth transition period for all stakeholders. Our work both to maximise the potential of Mnazi Bay and to identify M&A opportunities to add material value continues apace and we look forward to updating shareholders on our 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
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Investor Relations Adviser (UK)
+44 (0) 20 7390 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.