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Wentworth Resources Limited : Operational Update


June 13, 2017 - London

 

PRESS RELEASE
13 June 2017

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 today providing an update to shareholders.

Further to the Operational Update in April and the successful Private Placement in May, we are pleased to announce that the farm-out process for the Company's Tembo-1 appraisal asset in northern Mozambique is now underway. The analysis of the results from the Tembo-1 discovery well and interpretation of the existing seismic data are now complete. The Company is continuing to advance its appraisal programme and is looking to secure an industry partner to participate in an appraisal well, which is planned for Q2 2018. The Company has identified a number of potential drilling locations and has commenced pre-planning work for the appraisal well.

The Company's internal assessment of the prospective resource estimate for the Tembo Structure is 1.7 Tcf (unrisked P50).Significant oil shows in the Tembo-1 discovery well also suggest the potential for an oil case of 219 MMbbls (unrisked P50).There is further significant upside potential in the 2,500 sq. km. Tembo Block which is not included in these prospective resource numbers.

The Company has an 85% working interest in the Tembo Block and feels confident that we will be able to secure an industry partner to participate in this appraisal programme.We will continue to update the market as material developments on this asset occur.

In relation to the Company's Mnazi Bay asset in Tanzania, Tanzania Petroleum Development Corporation ("TPDC") and Tanzania Electric Supply Company Limited ("TANESCO") have recently paid monthly invoices totalling $1.0 million net to Wentworth for gas sales. The Mnazi Bay Partners  continue to work closely with the Government of Tanzania to settle all outstanding invoices. As part of our Gas Sales Agreement with TPDC, payment guarantees are in place which can be utilised, if deemed necessary, should payments from TPDC become excessively delayed. Other positive developments include an increase in daily production volumes since the end of the rainy season and we maintain our guidance for the year of 40 - 50 MMscf/d.

Geoff Bury, Managing Director, commented:

"We are very excited about being ready and in a position to advance the appraisal of the Tembo-1 discovery and feel confident that this exciting opportunity will attract an industry partner who shares our commitment to drilling an appraisal well next year. The payment received in Tanzania demonstrates the willingness to settle invoices when TPDC and TANESCO are in a financial position to do so. Along with our Operator, Maurel et Prom, we continue to work closely with TPDC and TANESCO to resolve the payment delays and clear all arrears."

-Ends-

Enquiries:
Wentworth Geoffrey Bury,
Managing Director
gpb@wentworthresources.com
+1 403 993 4450
 
Lance Mierendorf,
Chief Financial Officer

lance.mierendorf@wentworthresources.com
+1 403 680 8773
Katherine Roe
Vice President Corporate Development & Investor Relations

katherine.roe@wentworthresources.com
+44 7841 087 230
Crux Advisers Investor Relations Adviser
(Norway)
+47 909 808 48
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) wentworth@fticonsulting.com
+44 (0) 20 3727 1000
  Edward Westropp
Kim Camilleri
 

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.

Notes and Glossary

These assessments are made in accordance with the standard defined in the SPE/WPC Petroleum Resources Management System.

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.

MMbbl Million barrels
Prospective Resources Petroleum deposits that are estimated, on a given date, to be discovered from an accumulation yet to be discovered
Tcf Trillion cubic feet

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, 2016, 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.

170613 Announcement



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

GlobeNewswire

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