Wentworth Resources Limited : Mnazi Bay Operational Update - First Payment Received
4 November 2015
WENTWORTH RESOURCES LIMITED
("Wentworth" or "the Company")
Mnazi Bay Operational Update - First Payment Received
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 following first delivery of gas to the pipeline project from its assets near Mnazi Bay, Tanzania.
Gas delivery to the new transnational pipeline has commenced and is being used by the Ubungo-II and Symbian power plants in Dar es Salaam
Production volumes into the pipeline are currently at 33 mmscf/day, and are expected to reach 80 mmscf/day in Q4 2015
An average of 33 mmscf/day was delivered to the new pipeline during October 2015 and a gross payment of $3.8 million has been received relating to the October 2015 gas deliveries
Further to the Company's announcement on 20 August 2015 that gas deliveries to the new transnational pipeline had commenced; the gas production facilities at Madimba, the Mtwara to Dar es Salaam pipeline and the Kinyerezi Gas Receiving Facility have now been fully commissioned and are operational. Mnazi Bay Gas is currently being used to generate power in Dar es Salaam at the existing Ubungo-II and Symbian power plants, as well as at the new Kinyerezi-I power plant. Production volumes into the pipeline are currently at 33 mmscf/day from three wells on a restricted flow basis, and are expected to reach 80 mmscf/day once all of the generators at these three power plants are fully operational, which is expected in Q4 2015. Three of the five existing gas wells at Mnazi Bay have been successfully brought on-stream with well performance in line with expectations. The fourth well is expected to be tied in during the month of November 2015 and the fifth well is expected to be tied in and ready to produce into the new pipeline in Q1 2016.
Sales gas volumes of 1,032 mmscf were delivered to the new pipeline during October 2015 (an average of 33 mmscf/day) and a gross payment of $3.8 million to the Mnazi Bay Joint Venture Partners has been received from the buyer of the gas, Tanzania Petroleum Development Corporation ("TPDC"). Under the Gas Sales Agreement signed on 12 September 2014, the sale price has been set at US$3.00 per million BTU, approximately US$3.07 per thousand cubic feet, rising in line with the US CPI industrial index commencing in 2016.
Geoff Bury, Managing Director, commented:
"We are pleased with the progress that has been made by the Government during the start-up and commissioning phases and we are delighted about how well the new pipeline system is working. We, along with our Joint Venture Partners, feel confident that our existing wells will be capable of delivering the initial target production volumes of 80mmscf/d while we expect the Government owned power plants to be ready to take the full amount of these volumes during the last quarter of 2015. The Mnazi Bay Concession gas plays a vital role in reducing the cost and improving the reliability of power generation in Tanzania."
| Enquiries: || || |
| || Geoffrey Bury,|
+1 403 993 4450
| || || |
| Wentworth || Lance Mierendorf,|
Chief Financial Officer
+1 403 680 8773
| || Katherine Roe|
Head of Investor Relations & Corporate Communications
+44 7841 087 230
| Swedbank First Securities || Broker (Norway) || +47 23 23 80 00 |
| || Ove Gusevik || |
| || Jarand Lønne|
| Crux Advisers || Investor Relations Adviser |
| +47 909 808 48 |
| || Jan Petter Stiff || |
| || Carl Bachke|
| Stifel Nicolaus Europe Limited || AIM Nominated Adviser and Broker (UK) || +44 (0) 20 7710 7600 |
| || Callum Stewart || |
| || Ashton Clanfield|
| FirstEnergy Capital || Broker (UK) || +44 (0) 20 7448 0200 |
| || Hugh Sanderson|
| FTI Consulting || Investor Relations Adviser (UK) || firstname.lastname@example.org |
+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; 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.
Wentworth holds a 31.94% participation interest in production operations and a 39.925% participation interest in exploration operations of the Mnazi Bay Concession. M&P is operator and holds a 48.06% participation interest in production operations and 60.075% participation interest in exploration operations with Tanzania Petroleum Development Corporation ("TPDC") holding the remaining 20% participation interest in production operations.
Gerold Fong, Vice President of Exploration (BSC Geophysics, 1982) who has 31 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, 2014, available on Wentworth's website, for further description of the risks and uncertainties associated with Wentworth's business.
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.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX 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