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Thursday, 11 January 2018

Wentworth Resources Limited : Operational Update and 2018 Production Guidance

Wentworth Resources Limited    

Published: 08:00 CET 11-01-2018 /GlobeNewswire /Source: Wentworth Resources Limited / : WRL /ISIN: CA9506771042

Wentworth Resources Limited : Operational Update and 2018 Production Guidance

 

 

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 (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of Nasdaq Corporate Solutions clients. Source: Wentworth Resources Limited, 630, 715 – 5th Avenue SW, Calgary, Alberta T2P 2X6, Canada
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