Wentworth Resources Ltd Wentworth Resources Limited : Tanzania Reserves Update
09 March 2017 - 6:00PM
UK Regulatory
TIDMWRL
PRESS RELEASE
9 March 2017
WENTWORTH RESOURCES LIMITED
("Wentworth" or "the Company")
Tanzania Reserves Update
Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed
independent, East Africa-focused oil & gas company, is pleased to
announce the results of an independent evaluation of the gas reserves
within the Mnazi Bay Concession in Tanzania, carried out by RPS Energy
Canada Ltd. ("RPS"), Calgary, Canada on behalf of Maurel et Prom
(Operator) and Wentworth Resources.
HIGHLIGHTS (net to Wentworth) as at 31 December 2016:
-- Net Proved + Probable (2P) reserves are valued at US$180.3 million after
tax (NPV10)
-- Proved (1P) reserves: 110.1 Bscf gross (18.3 MMboe); 79.8 Bscf net (13.3
MMboe)
-- Proved + Probable (2P) reserves: 181.0 Bscf gross (30.2 MMboe); 115.9
Bscf net (19.3 MMboe)
-- Proved, Probable & Possible (3P) reserves: 270.7 Bscf gross (45.1
MMboe); 156.5 Bscf net (26.1 MMboe)
In the first full year of production, all wells have produced as
expected, underpinning the quality of the Company's assets in Tanzania.
With Mnazi Bay gas production from the existing gas wells stabilising
and the expected significant ramp up in volumes starting in 2018 in line
with the expected start-up of the new power plants, Kinyerezi I
expansion and Kinyerezi II, the existing reserves provide a solid
foundation to grow production from the Mnazi Bay concession in the near
future. Wentworth holds 31.94% ownership in the Mnazi Bay Concession.
Geoff Bury, Managing Director, commented:
"We are delighted that this updated reserve report continues to support
the quality of our reserves in Mnazi Bay. The results of this
independent reserve report are consistent with the previous year and
reinforces the potential of the Mnazi Bay fields. With production
expected to materially ramp up in 2018, the successful performance of
our existing wells and all the necessary infrastructure in place we look
forward to sustained production from our valuable Tanzania asset."
Mnazi Bay, Tanzania Reserves:
Certain key extracts from RPS' Reserves Assessment follow and the
complete report will be made available on the Company's website at
www.wentworthresources.com.
Reserves Summary for Mnazi Bay
as at December 31, 2016
Reserve
Category Full Field Wentworth 31.94% WI
Gross Reserves Gross (1) Reserves Net(2) Reserves
Sales Gas BOE Sales Gas BOE Sales Gas BOE
(Bscf) (MMbbl) (Bscf) (MMbbl) (Bscf) (MMbbl)
PDP 105.1 17.5 33.6 5.6 27.2 4.5
PD 160.1 26.7 51.1 8.5 42.1 7.0
1P 344.6 57.4 110.1 18.3 79.8 13.3
2P 566.6 94.4 181.0 30.2 115.9 19.3
3P 847.6 141.3 270.7 45.1 156.5 26.1
1. Gross Reserves are Wentworth's working interest share of Total Field
Reserves.
2. Net Reserves are calculated as the product of Wentworth's Gross Reserves
and the ratio of Wentworth's net revenue to Wentworth's working interest
share of field gross revenue.
Wentworth Resources Working Interest Reserves for
Mnazi Bay
as at December 31, 2016
NPV Before Tax (Millions US$) using discount factor
Reserve Category of
0% 5% 10% 15% 20%
Proved
Producing 86.5 79.1 72.6 67.0 62.1
Non Producing 26.5 22.2 18.5 15.4 12.9
Undeveloped 100.4 72.3 53.2 39.9 30.4
Total Proved 213.4 173.7 144.4 122.3 105.4
Probable 92.5 62.2 45.9 36.7 31.2
Proved +
Probable 305.9 235.9 190.3 159.0 136.5
Possible 131.3 70.0 40.0 24.7 16.5
Proved +
Probable +
Possible 437.2 305.8 230.3 183.7 153.0
Wentworth Resources Working Interest Reserves for
Mnazi Bay
as at December 31, 2016
NPV After Tax (Millions US$) using discount factor
Reserve Category of
0% 5% 10% 15% 20%
Proved
Producing 85.2 78.0 71.7 66.2 61.4
Non Producing 23.8 20.1 16.8 14.1 11.8
Undeveloped 92.7 66.8 49.1 36.8 28.0
Total Proved 201.7 164.9 137.7 117.1 101.2
Probable 84.8 57.4 42.6 34.2 29.2
Proved + Probable 286.5 222.3 180.3 151.3 130.3
Possible 120.5 64.5 37.1 23.0 15.4
Proved + Probable
+ Possible 407.0 286.8 217.3 174.3 145.8
There has been no change to Prospective Resources in the Company's Mnazi
Bay Concession.
Partners in the Mnazi Bay Concession are:
Maurel et Prom: 60.075% (Operator) through exploration;
48.06% production
Wentworth: 39.925% through exploration; 31.94%
production
TPDC: 20% production
Notes and Glossary
These assessments are made in accordance with the standard defined in
the SPE/WPC Petroleum Resources Management System (2007) and the
Canadian Oil and Gas Evaluation Handbook ("COGEH").
Gerold Fong, Vice President Exploration of the Company and an
Exploration Geophysicist with over 30 years of international and
frontier experience in many basins worldwide, has read and approved the
technical disclosure in this regulatory announcement. Mr. Fong holds a
B.Sc. in Geophysics from the University of Calgary and is a member of
the Association of Professional Engineers and Geoscientist of Alberta.
Bscf Billion standard cubic feet
BOE or boe Barrels of oil equivalent
Contingent Quantities of petroleum estimated, as at a given date,
Resources to be potentially recoverable from known accumulations,
but the applied project(s) are not yet considered
mature enough for commercial development due to one
or more contingencies
GIIP Gas Initially In Place
MMbbl Million barrels
MMboe Million barrels of oil equivalent
NPV Net present value (at a specified discount rate and
specified discount date)
PDP Proved developed producing
Gross Reserves Reserves volumes before deductions for royalty
Net Reserves Reserves volumes after deduction of royalty
1P Proved Reserves, those quantities of petroleum, which,
by analysis of geoscience and engineering data, can
be estimated with reasonable certainty to be commercially
recoverable, from a given date forward, from known
reservoirs and under defined economic conditions,
operating methods, and government regulations.
2P Proved + Probable Reserves, those additional Reserves
which analysis of geoscience and engineering data
indicate are less likely to be recovered than Proved
Reserves but more certain to be recovered than Possible
Reserves. It is equally likely that actual remaining
quantities recovered will be greater than or less
than the sum of the estimated Proved plus Probable
Reserves
3P Proved + Probable + Possible Reserves, those additional
reserves which analysis of geoscience and engineering
data suggest are less likely to be recoverable than
Probable Reserves.
Prospective Petroleum deposits that are estimated, on a given
Resources date, to be potentially recoverable from accumulations
yet to be discovered
Reserves Quantities of petroleum anticipated to be commercially
recoverable by application of development projects
to known accumulations from a given date forward under
defined conditions.
TPDC Tanzania Petroleum Development Corporation
WI Working interest attributable to Wentworth
-Ends-
The information contained within this announcement is considered to be
inside information prior to its release, as defined in Article 7 of the
Market Abuse Regulation No. 596/2014, and is disclosed in accordance
with the Company's obligations under Article 17 of those Regulations.
Enquiries:
Geoffrey Bury, gpb@wentworthresources.com
Managing Director +1 403 993 4450
Lance Mierendorf, lance.mierendorf@wentworthresources.com
Wentworth Chief Financial Officer +1 403 680 8773
Katherine Roe
Vice President Corporate Development & Investor Relations katherine.roe@wentworthresources.com
& +44 7841 087 230
Crux Investor Relations Adviser
Advisers (Norway) +47 909 808 48
Carl Bachke
Stifel
Nicolaus
Europe
Limited AIM Nominated Adviser and Broker (UK) +44 (0) 20 7710 7600
Callum Stewart
Nicholas Rhodes
Ashton Clanfield
FirstEnergy
Capital Broker (UK) +44 (0) 20 7448 0200
Hugh Sanderson
FTI Investor Relations Adviser (UK) wentworth@fticonsulting.com
Consulting +44 (0) 20 3727 1000
Edward Westropp
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.
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.
2017 03 09 Press Release: http://hugin.info/136496/R/2086399/787225.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Wentworth Resources Limited via Globenewswire
http://www.wentworthresources.com/
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March 09, 2017 02:00 ET (07:00 GMT)
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