Wentworth Resources Plc Wentworth Resources Plc : Operational And Commercial Update.
07 March 2019 - 6:00PM
UK Regulatory
TIDMWEN
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: Eskil Jersing, eskil.jersing@wentplc.com
Wentworth Chief Executive Officer +44 (0)118 2065427
Katherine Roe, katherine.roe@wentplc.com
Chief Financial Officer +44 (0)118 2065428
Stifel Nicolaus Europe Limited AIM Nominated Adviser and Broker +44 (0) 20 7710 7600
Callum Stewart
Ashton Clanfield
Simon Mensley
Peel Hunt LLP Broker +44 (0) 20 7418 8900
Richard Crichton
Ross Allister
Vigo Investor Relations Adviser +44 (0) 20 7390 0230
Patrick d'Ancona
Chris McMahon
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.
Operational and Commercial Update:
http://hugin.info/136496/R/2237627/881544.pdf
This announcement is distributed by West Corporation on behalf of West
Corporation 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 Plc via Globenewswire
https://www.wentplc.com
(END) Dow Jones Newswires
March 07, 2019 02:00 ET (07:00 GMT)
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