PRESS RELEASE 7 March 2019
WENTWORTH RESOURCES PLC
("Wentworth" or the "Company")
Operational and Commercial Update
Wentworth, the AIM (AIM: WEN) listed independent, East Africa-focused oil & gas company, is today providing an update to shareholders.
Mnazi Bay Operations
As part of the scheduled maintenance program of the Operator, a slick-line campaign is planned to commence towards the end of March 2019. It will include opening the sliding-sleeves of various well completions and acquiring static pressures in the Lower MB sand interval.
Opening sliding sleeves, which shut off or open flow from one or more reservoir zones, allows for more operational flexibility in the asset with regards sustaining plateau production. The pressure monitoring of sands currently not flowing will further refine the Joint Venture understanding of both in-place and recoverable volumes in all intervals of the Mnazi Bay field.
Collectively, these operations will determine if sustained higher production rates can accommodate forward demand growth.
It is expected that demand will increase in H2 2019 and beyond due to an increase in demand from Dangote Cement Plant (from 15 MMscf/d to 35 MMscf/d) and the Kinyerezi Power Complex realizing its full capacity.
Due to the operational activities outlined above, we expect that the average daily production rate will be limited to 70 MMscf/day from 11 March 2019 until early April 2019.
Despite this reduced production, the onset of the rainy season in April through May 2019 and the scheduled maintenance of the power stations at the Ubungo Complex in Dar es Salaam, the Company is maintaining current guidance for 2019 average daily production of between 75 - 85 MMscf/day.
Commercial
Monthly payments in January and February 2019 for gas sales generated from the Mnazi Bay Concession of, in aggregate, $3.2 million net to Wentworth, have been received. These payments are post allocation of the Tanzania Petroleum Development Corporation ("TPDC") receivable, adjusted to reflect the Ziwani-1 exploration well and associated 3D seismic costs as previously announced. Payments were received from both TPDC and Tanzania Electric Supply Company Limited ("TANESCO") and due arrears from both off-takers remain at three months, having steadily reduced during the course of 2018.
As a result of the continued demand and sustainable payment landscape, the Company continues to meet and pay-down its debt commitments from free cash-flow in 2019 and expects to be debt free with the final payment on its single outstanding loan facility falling due in January 2020.
Corporate Presentation
In addition, the Company has published a corporate presentation "Tanzanian Onshore Gas: Poised for Growth in a Demand Led Landscape" to be presented today at the APPEX conference in London, available at the Company's website www.wentplc.com.
-Ends-
| Enquiries: Wentworth | Eskil Jersing, Chief Executive Officer Katherine Roe, Chief Financial Officer | eskil.jersing@wentplc.com +44 (0)118 2065427 katherine.roe@wentplc.com +44 (0)118 2065428 |
| Stifel Nicolaus Europe Limited | AIM Nominated Adviser and Broker Callum Stewart Ashton Clanfield Simon Mensley | +44 (0) 20 7710 7600 |
| Peel Hunt LLP | Broker Richard Crichton Ross Allister | +44 (0) 20 7418 8900 |
| Vigo | Investor Relations Adviser Patrick d'Ancona Chris McMahon | +44 (0) 20 7390 0230 |
About Wentworth Resources
Wentworth Resources is a publicly traded (AIM: WEN), independent oil & gas company with natural gas production; exploration and appraisal opportunities in the Rovuma Delta Basin of coastal southern Tanzania.
Inside Information
This announcement does not contain inside information.
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.
Notice
The AIM Market of the London Stock Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this press release.
