AI assistant
TOWER RESOURCES PLC — Earnings Release 2015
Jan 13, 2016
7980_iss_2016-01-13_d041bf0e-2460-40f3-8054-c99bc1fc4147.html
Earnings Release
Open in viewerOpens in your device viewer
Wentworth Resources Limited : Mnazi Bay Operational Update
Wentworth Resources Limited : Mnazi Bay Operational Update
PRESS RELEASE
13 January 2016
WENTWORTH RESOURCES LIMITED
("Wentworth" or "the Company")
Mnazi Bay Operational Update
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 on its producing gas assets in Mnazi Bay, Tanzania.
Further to the Company's announcement on 4 November 2015 that gas deliveries to
the new transnational pipeline had commenced and production volumes were ramping
up, Wentworth reports that Q4 2015 gross gas production into the pipeline and
directly to a power plant in Mtwara averaged 46 MMscf/d, with production
averaging 55 MMscf/d during the month of December 2015. To date, growing gas
demand from the power sector has been impacted by delays experienced in
commissioning the new Kinyerezi power plant and the conversion of the Ubungo
power plant from diesel to gas. These delays are considered to be short term in
nature and all of the power generation facilities that will utilize Mnazi Bay
gas in the generation of electricity are expected to become fully operational
during Q1 2016. As a result, production volumes into the pipeline are now
expected to reach between 70 and 80 MMscf/day during Q1 2016 and thereafter
remain consistent throughout 2016, with the potential for a further increase in
volumes depending on demand. The existing Mnazi Bay gas wells continued to
perform in line with expectations and are anticipated to be more than capable of
meeting expected demand. As a result, no new development wells are currently
planned for 2016.
Payments by the buyer, Tanzania Petroleum Development Corporation ("TPDC"), to
the Joint Venture, for gas sales delivered to the new pipeline have been
consistently paid in accordance with the agreed terms. 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.
The Company ended 2015 with cash of approximately $2.7 million and debt of $26
million of which $7.4 million of principal and interest is due to be repaid from
internally generated cash flow during H2 2016.
Although no firm exploration plans have been made in 2016, the Joint Venture
plans to align exploration activities in the Mnazi Bay concession with gas
demand growth within Tanzania. Management will look to provide an update to
shareholders as these plans progress.
Geoff Bury, Managing Director, commented:
"I am pleased that the commissioning of the pipeline and the gas offtake
facilities have all gone smoothly and that the Mnazi Bay wells have performed as
expected; the Joint Venture's position as the main feedstock for the new gen-
sets in Tanzania provides a unique position from which to benefit from the
growing demand for power. Moreover, the expectation of increasing production
without the need for additional capital expenditure will further enhance our
rapidly strengthening financial position. Wentworth is in the unique position
for a small E&P company to experience a growing cash balance on the back of
increasing gas production with no commodity price risk."
"The newly elected Government has demonstrated its commitment to the future
growth and development of Tanzania's power industry and continues to work
diligently to enable new and existing power plants to become fully operational
in the coming months."
-Ends-
Enquiries:
Geoffrey Bury, [email protected]
Managing Director +1 403 993 4450
Wentworth Lance Mierendorf, [email protected]
Chief Financial +1 403 680 8773
Officer
Katherine Roe [email protected]
Head of Investor +44 7841 087 230
Relations &
Corporate
Communications
Swedbank First Broker (Norway) +47 23 23 80 00
Securities
Ove Gusevik
Jarand Lønne
Crux Advisers Investor Relations +47 909 808 48
Adviser
(Norway)
Jan Petter Stiff
Carl Bachke
Stifel Nicolaus AIM Nominated +44 (0) 20 7710 7600
Europe Limited Adviser and Broker
(UK)
Callum Stewart
Ashton Clanfield
FirstEnergy Broker (UK) +44 (0) 20 7448 0200
Capital
Hugh Sanderson
FTI Consulting Investor Relations [email protected]
Adviser (UK) +44 (0) 20 3727 1000
Edward Westropp
Tom Hufton
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.
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.
[HUG#1978446]