Wentworth Resources Limited : Operational Update
(Thomson Reuters ONE) -
PRESS RELEASE
22 June 2016
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 pleased to provide an
operational update on its appraisal asset in northern Mozambique and its
producing gas asset in Mnazi Bay, Tanzania; ahead of the Company's Annual
General Meeting to be held later this morning in London.
Mozambique - Operatorship and appraisal plan approved by Government
Further to the gas discovery made at the Tembo-1 well location in December
2014, Wentworth is pleased to report that Government approval by the Ministerio
dos Reuros Minerais e Energia (Minister of Minerals & Energy) for an Appraisal
Plan has now been received. Under the two-year appraisal period, Wentworth
becomes the Operator of the Rovuma Onshore Concession ("Concession") and
increases its participation interest in the Concession from 11.59% to 85%. State
owned Empresa Nacional de Hidrocarbonetos ("ENH") retains a 15% participation
interest as a carried partner through to the commencement of commercial
operations. In addition, ENH has the right to acquire a further 15%
participation interest in the Concession from Wentworth within 18 months from
the date of submission for a development plan for consideration equal to the
proportionate share of past costs incurred.
Implementation of a work program will commence in 2016 with the reprocessing of
approximately 1,000 km of existing seismic data, the cost of which will be
funded from internally generated cash flow. Commencing the second half 2017,
the Company plans to acquire a minimum of 500 km of new onshore 2D seismic
data. The drilling of an appraisal well is anticipated to occur in 2018 after
the identification of a suitable drilling location based on the evaluation and
integration of the new and existing seismic data.
The Tembo-1 well was drilled to a total depth of 4,553 metres into rocks of
Upper Jurassic age. Natural gas and some condensate was recovered by modular
formation dynamics testing ("MDT") confirming the petro physical analysis of 11
meters of pay in sands of Cretaceous age. Tembo-1 was a milestone well for the
Rovuma basin and an extensive amount of pertinent geologic data was collected
which will have a significant impact on future exploration efforts in the basin.
Further analysis of the geologic and petro physical data has led to the
identification of additional zones of potential bypassed pay. These zones and
the tested gas bearing sands will be subject to further evaluation with
additional seismic and drilling. The agreed appraisal area, located around the
Tembo-1 discovery onshore, measures approximately 2,500 km(2 )providing the
necessary running room to develop this potentially world class play fairway.
Tanzania - Production volumes continue to ramp up but have plateaued following
impact of seasonal hydro-power generation and Symbion electrical power
generation suspension
In Mnazi Bay, Tanzania, gas deliveries continue to the new transnational
pipeline and are ultimately used in power generation facilities near Tanzania's
commercial capital, Dar es Salaam. Production volumes from the Mnazi Bay gas
field have been ramping up and peaked at 74 MMscf/d during Q2. However, volumes
were curtailed for a period of time during April 2016 due to heavy rains when
some natural gas power generation was displaced by hydro generated power.
Furthermore, sales volume to the pipeline have been maintained at 50 MMscf/d
since 2 June 2016 due to a dispute between Symbion, one of the power plants
which utilises Mnazi Bay gas which has temporarily ceased operations, and
TANESCO. It is unclear how long it will be before the dispute is resolved and
power generation at the Symbion power plant resumes and, until such time,
volumes are expected to remain at this level. Daily production volumes of 70 -
80 MMscf/d are still expected to be achieved in 2016, once this dispute has been
resolved and power demand stabilizes.
As stated previously, payments to the Joint Venture for monthly gas sales
delivered to the new pipeline by Tanzania Petroleum Development Corporation
("TPDC"), have been regularly received.
Bob McBean, Executive Chairman, commented:
"I am very pleased to announce the receipt of Government approval for our
operatorship and appraisal plan over the Tembo-1 gas discovery in Mozambique.
With all the data gained to date through our exploration drilling and seismic
interpretation, we believe this area of onshore Mozambique to be highly
prospective and although we expect minimal capital spend this year, I am looking
forward to working with ENH as we progress this acreage position toward
appraisal drilling in the future.
"We continue to be extremely pleased with the performance of our wells in Mnazi
Bay and how the new pipeline system is successfully delivering natural gas to
Dar es Salaam. Whilst production volumes are lower than expected for the second
quarter, this is considered short term in nature and the capacity to step up our
production volumes remains in place. With further power generation capacity
still being installed, we are confident of the long term growth prospects for
Wentworth."
-Ends-
Enquiries:
Wentworth Geoffrey Bury, gpb(at)wentworthresources.com
Managing Director +1 403 993 4450
Lance Mierendorf, lance.mierendorf(at)wentworthresources.com
Chief Financial +1 403 680 8773
Officer
Katherine Roe katherine.roe(at)wentworthresources.com
Vice President +44 7841 087 230
Corporate
Development &
Investor Relations
Swedbank First Broker (Norway) +47 23 23 80 00
Securities
Ove Gusevik
Jarand Lønne
Crux Advisers Investor Relations +47 909 808 48
Adviser
(Norway)
Jan Petter Stiff
Carl Bachke
Stifel Nicolaus AIM Nominated +44 (0) 20 7710 7600
Europe Limited Adviser and Broker
(UK)
Callum Stewart
Ashton Clanfield
FirstEnergy Capital Broker (UK) +44 (0) 20 7448 0200
Hugh Sanderson
FTI Consulting Investor Relations wentworth(at)fticonsulting.com
Adviser (UK) +44 (0) 20 3727 1000
Edward Westropp
Tom Hufton
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.
Gerold Fong, Vice President of Exploration (BSC Geophysics, 1982) who has over
30 years of experience in the exploration and production industry, has read and
approved the technical disclosure in this regulatory announcement.
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, 2015,
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 to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
2016 06 22 AGM Presentation:
http://hugin.info/136496/R/2022148/751291.pdf
2016 06 22 Press Release:
http://hugin.info/136496/R/2022148/751290.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#2022148]
Unternehmensinformation / Kurzprofil:
Datum: 22.06.2016 - 08:00 Uhr
Sprache: Deutsch
News-ID 479287
Anzahl Zeichen: 12595
contact information:
Town:
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