Wentworth Resources Limited : Update on the Acquisition of Cove Energy's Interest in the Mnazi Bay Concession, Tanzania and Maurel et Prom's Pre-Emption Rights
(Thomson Reuters ONE) -
PRESS RELEASE
16 JULY 2012
WENTWORTH RESOURCES LIMITED ("Wentworth")
UPDATE ON THE ACQUISITION OF
COVE ENERGY'S INTEREST IN THE MNAZI BAY CONCESSION, TANZANIA
AND MAUREL ET PROM'S PRE-EMPTION RIGHTS
Further to Wentworth's announcements regarding the proposed acquisition of Cove
Energy plc's ("Cove Energy") 16.38% participation interest in the production
operations (20.475% participation interest in exploration operations) in the
Mnazi Bay Concession ("Concession") and Maurel et Prom's ("M&P") pre-emption
rights, Wentworth is pleased to announce that all of the necessary Government
approvals have now been received. The following is a summary of the
transactions:
* Wentworth has entered into an agreement to purchase Cove Energy's
participating interest in the Concession with an effective date of September
30, 2011 ("Effective Date"), which is held by Cove Energy's 100% owned
subsidiary Cove Energy Tanzania Mnazi Bay Limited ("CETMBL"), in exchange
for:
* Terminating its 4.95% royalty interest out of net profits from Cove
Energy's 8.5% working intertest in the Offshore Rovuma Area 1 Concession
in Mozambique;
* Two million newly issued fully paid shares in Wentworth;
* Cove Energy will also receive a contingent payment of up to US$8.5
million, should certain future natural gas production thresholds from
Mnazi Bay be reached.
* Wentworth has entered into an agreement to sell 60.075% of the shares of
CETMBL to M&P for:
* Cash consideration of approximately US$ 18.9 million to be paid to
Wentworth upon closing;
* M&P assuming 60.075% of the contingent payment due to Cove Energy.
* The purchase of CETMBL by Wentworth and M&P's purchase of pro rata shares of
CETMBL have now been approved by the Government of Tanzania.
* Wentworth and M&P have agreed that upon completion of the transactions their
respective pre-emption rights under the Joint Operating Agreement will be
fully statisfied.
* Wentworth shall issue an update to its trading exchanges upon closing the
transactions, which is expected later this month.
From the Effective Date, M&P's and Wentworth's share of revenue, operating
costs, exploration costs and development costs are as set out in the table
below, with the exception of Wentworth paying 11.98% of the costs of the Ziwani-
1 exploration well and 11.98% of the next US$8.8 million of capital
expenditures.
Upon closing the transactions the respective interests will be as follows:
Percentage Interest in Percentage Interest in
Partner Development and Production Exploration
M&P (operator) 48.06 60.075
Wentworth 31.94 39.925
TPDC 20.00 -
Executive Chairman, Bob McBean, commented:
"We are extremely pleased to provide this update to shareholders and to receive
final government approval to close these important transactions. We continue to
work with our partners, M&P and TPDC, to further the exploration and development
of the Mnazi Bay Concession. In anticipation of completion of the Mtwara to Dar
es Salaam pipeline, negotiations of a gas sales agreement are underway,
workovers of three existing gas wells are ongoing and the partners are planning
additional exploration activities. These activities are designed to increase
our resource base and position Wentworth to become a significant gas producer in
Tanzania."
ENDS
About the Mnazi Bay Concession
The Mnazi Bay Concession Area is located in coastal, south-eastern Tanzania in
the Ruvuma Basin. The area lies between Aminex's Ruvuma Concession Area and BG
Group's offshore Block 1. The 756 km² concession area contains two discovered
Tertiary aged gas fields (Mnazi Bay and Msimbati) and holds additional Tertiary,
Cretaceous and Jurassic hydrocarbon potential. Five wells have been drilled to
date: MB-1, MB-2, MB-3, MS-1X, and Ziwani-1 and all five wells encountered
hydrocarbons. MB-1 is currently producing gas at a rate of 1.7-2.0mmscf/d and
this gas is transported via an 8", 27 kilometre pipeline to the Mtwara Power
Plant where it generates electricity for numerous local communities.
Enquiries:
Wentworth Bob McBean, Executive Chairman rpm(at)wentworthresources.com
Eric Fore, Finance, Investor & etf(at)wentworthresources.com
Public Relations Manager
Panmure Gordon Nominated adviser & broker +44 (0) 20 7459 3600
Katherine Roe
Charlie Leigh-Pemberton
FirstEnergy Broker +44 (0) 20 7448 0200
Capital
Majid Shafiq
Travis Inlow
College Hill Investment relations adviser +44 (0) 20 7457 2020
Nick Elwes
Catherine Maitland
Alexandra Roper
Axxept Investment relations adviser +47 (0) 99 22 0200
Per Arne Totland
About Wentworth Resources
Wentworth Resources is a publicly traded (AIM:WRL, OSE:WRL), independent oil &
gas company with: natural gas production; midstream assets; a committed
exploration and appraisal drilling programme; and large-scale gas monetisation
opportunities, all in the Rovuma Delta Basin of coastal southern Tanzania and
northern Mozambique.
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, 2011,
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.
2012 07 16 Press Release:
http://hugin.info/136496/R/1626803/520534.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Wentworth Resources Limited via Thomson Reuters ONE
[HUG#1626803]
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Datum: 16.07.2012 - 08:01 Uhr
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News-ID 165297
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"Wentworth Resources Limited : Update on the Acquisition of Cove Energy's Interest in the Mnazi Bay Concession, Tanzania and Maurel et Prom's Pre-Emption Rights"
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