Wentworth Resources Ltd Wentworth Resources Limited : Operational Update And 2018 Production Guidance
January 11 2018 - 2:00AM
UK Regulatory
TIDMWRL
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:
Geoffrey Bury, gpb@wentworthresources.com
Wentworth Managing Director +1 403 993 4450
Lance Mierendorf, lance.mierendorf@wentworthresources.com
Chief Financial Officer +1 403 680 8773
Katherine Roe katherine.roe@wentworthresources.com
Vice President Corporate Development & Investor Relations +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
Broker (UK)
Peel Hunt LLP Richard Crichton +44 (0) 20 7418 8900
Ross Allister
Chris Burrows
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: http://hugin.info/136496/R/2160726/830988.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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January 11, 2018 02:00 ET (07:00 GMT)
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