PRESS
RELEASE
11 January 2018
WENTWORTH
RESOURCES LIMITED
("Wentworth" or the "Company")
Operational Update
and 2018 Production Guidance
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.
Mnazi Bay
Production, Tanzania
Gas demand for the Company's producing reserves continues to grow
following the commissioning and startup of the country's newest
gas-fired electrical power generation facility, Kinyerezi-2, with
the first two of six turbines now operational. This new demand,
combined with existing demand from the Kinyerezi-1 and Ubungo II
power facilities, the lack of any material impact from
hydro-electric power generation which typically occurs in Q2 and
burgeoning growth in demand from industrial customers, culminated
in a daily production exit rate for 2017 of 73.4 MMscf/d (gross).
These were the highest production volumes produced from the Mnazi
Bay field last year.
Mnazi Bay achieved average gas
production in Q4 2017 of 62.2 MMscf/d. Taking into account the
seasonal variability of Q2 due to displacement hydro-electric power
generation during the annual rainy season, as well as production
from industry competitors the average production for the full year
2017 was 49.1 MMscf/d. This was at the upper end of the Company's
2017 production guidance range of 40 - 50 MMscf/d.
2018 Production
Guidance and Outlook
For 2018, the Company anticipates further growth in gas demand from
the Kinyerezi-2 power facility as an additional four gas-fired
turbines are expected to be commissioned during the year. New gas
demand from the industrial sector in 2018 is also expected from the
Dangote Cement factory when it begins using natural gas for in its
operations as well as other new industrial customers.
For 2018, based on growing demand
and taking into account the annual, seasonal lower demand during
the Q2 rainy season, full year average production, is expected to
be in the range of 65 to 75 MMscf/d. The Company will
continue to update the market as new sources of demand
materialise.
Tembo Appraisal,
Mozambique
Design and procurement activities for the drilling of an appraisal
well of the Tembo-1 gas discovery, are ongoing concurrent with the
farm-out process to secure an industry partner to participate in
the appraisal programme. The Company anticipates the drilling of
the appraisal well in Q3 2018, subject to securing a partner.
Bob McBean,
Executive Chairman, said:
"I am very pleased with the growth
in production during the second half of 2017 and optimistic that we
will achieve a yearly average production rate of 65 to 75 MMscf/d
in 2018. This increase in demand will enable Wentworth to continue
to strengthen its balance sheet by building up its cash reserves
over the course of this year and to pursue new opportunities to
deliver an increase in value to our shareholders."
-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 |
Stifel Nicolaus Europe Limited |
AIM Nominated Adviser and Broker (UK) |
+44 (0)
20 7710 7600 |
|
Callum
Stewart |
|
|
Ashton
Clanfield
|
|
GMP FirstEnergy |
Broker (UK) |
+44 (0)
20 7448 0200 |
|
Hugh
Sanderson
David van Erp
|
|
Peel Hunt LLP
|
Broker (UK)
Richard Crichton
Ross Allister
Chris Burrows
|
+44 (0) 20 7418 8900
|
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.
Inside
Information
The information contained within
this announcement is deemed by Wentworth to constitute inside
information as stipulated under the Market Abuse Regulation (EU)
no. 596/2014 ("MAR"). On the publication of this announcement via a
Regulatory Information Service ("RIS"), this inside information is
now considered to be in the public domain
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
to the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.
180111 Press Release
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
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