Wentworth Resources Ltd Wentworth Resources Limited : Tanzania Reserves Update
January 18 2018 - 2:00AM
UK Regulatory
TIDMWRL
PRESS RELEASE
18 January 2018
WENTWORTH RESOURCES LIMITED
("Wentworth" or "the Company")
Tanzania Reserves Update
Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed
independent, East Africa-focused oil & gas company, is pleased to
announce the results of its annual independent evaluation of the gas
reserves within the Mnazi Bay Concession in Tanzania, carried out by RPS
Energy Canada Ltd. ("RPS"), Calgary, Canada on behalf of Maurel et Prom
(Operator) and Wentworth Resources.
Highlights (net to Wentworth) as at 31 December 2017:
-- Net Proved + Probable (2P) reserves are valued at US$159.6 million after
tax (NPV10)
-- Proved (1P) reserves: 97.3 Bscf gross (16.2 MMboe); 72.7 Bscf net (12.1
MMboe)
-- Proved + Probable (2P) reserves: 176.4 Bscf gross (29.4 MMboe); 115.1
Bscf net (19.2 MMboe)
-- Proved, Probable & Possible (3P) reserves: 265.0 Bscf gross (44.2 MMboe);
155.8 Bscf net (26.0 MMboe)
The Company experienced a strong year of production in 2017 with good
well performance; there were no significant problems or issues
identified in the wells, underpinning the quality of the Company's
assets in Tanzania. Volumes have begun to ramp up significantly with the
first two turbines at Kinyerezi-2 now operational and the remaining four
turbines expected to be commissioned during this year. Further sources
of demand are also expected to materialise and, with the existing
reserves providing a solid foundation, the Company is well placed to
grow production from the Mnazi Bay concession in the near future.
Geoff Bury, Managing Director, commented:
"Our annual updated reserve report continues to support the quality of
our reserves in Mnazi Bay. The results of this independent reserve
report are consistent with the previous year, less the gas produced
during 2017, and reinforces the potential of the Mnazi Bay fields. With
strong average production delivered last year and significantly higher
volumes currently being experienced, combined with the continued
successful performance of our existing wells and all the necessary
infrastructure in place, we look forward to sustained production from
our valuable Tanzania asset."
Mnazi Bay, Tanzania Reserves:
Certain key extracts from RPS' Reserves Assessment follow and the
complete report will be made available on the Company's website at
www.wentworthresources.com.
Reserves Summary for Mnazi Bay
as at December 31, 2017
Reserve
Category Full Field Wentworth 31.94% WI
Gross(1) Reserves Gross(1) Reserves Net(2) Reserves
Sales Gas BOE Sales Gas BOE Sales Gas
(Bscf) (MMbbl) (Bscf) (MMbbl) (Bscf) BOE (MMbbl)
PDP 86.0 14.3 27.5 4.6 22.1 3.7
PD 139.0 23.2 44.4 7.4 36.7 6.1
1P 304.7 50.8 97.3 16.2 72.7 12.1
2P 552.3 92.1 176.4 29.4 115.1 19.2
3P 829.6 138.3 265.0 44.2 155.8 26.0
1. Gross Reserves are Wentworth's working interest share of Total Field
Reserves.
2. Net Reserves are calculated as the product of Wentworth's Gross Reserves
and the ratio of Wentworth's net revenue to Wentworth's working interest
share of field gross revenue.
Wentworth Resources Working Interest Reserves for
Mnazi Bay
as at December 31, 2017
NPV Before Tax (Millions US$) using discount factor
Reserve Category of
0% 5% 10% 15% 20%
Proved
Producing 56.7 54.8 52.7 50.6 48.6
Non Producing 33.4 26.9 21.9 18.0 15.1
Undeveloped 96.2 68.6 50.2 37.5 28.6
Total Proved 186.3 150.3 124.8 106.2 92.2
Probable 102.3 64.7 44.8 33.6 26.8
Proved + Probable 288.6 214.9 169.5 139.7 119.0
Possible 129.8 74.4 47.0 32.5 24.2
Proved + Probable
+ Possible 418.4 289.3 216.6 172.2 143.2
Wentworth Resources Working Interest Reserves for
Mnazi Bay
as at December 31, 2017
NPV After Tax (Millions US$) using discount factor
Reserve Category of
0% 5% 10% 15% 20%
Proved
Producing 56.7 54.7 52.6 50.6 48.5
Non Producing 29.8 24.1 19.6 16.2 13.5
Undeveloped 88.9 63.4 46.3 34.5 26.2
Total Proved 175.4 142.2 118.5 101.3 88.3
Probable 93.2 59.2 41.0 30.8 24.6
Proved + Probable 268.6 201.3 159.6 132.1 112.9
Possible 119.0 68.4 43.3 29.9 22.3
Proved + Probable
+ Possible 387.6 269.7 202.9 162.0 135.2
There has been no change to Prospective Resources in the Company's Mnazi
Bay Concession.
Partners in the Mnazi Bay Concession are:
Maurel et Prom: 60.075% (Operator) through exploration;
48.06% production
Wentworth: 39.925% through exploration; 31.94%
production
TPDC: 20% production
Notes and Glossary
These assessments are made in accordance with the standard defined in
the SPE/WPC Petroleum Resources Management System (2007) and the
Canadian Oil and Gas Evaluation Handbook ("COGEH").
Gerold Fong, Vice President Exploration of the Company and an
Exploration Geophysicist with over 30 years of international and
frontier experience in many basins worldwide, has read and approved the
technical disclosure in this regulatory announcement. Mr. Fong holds a
B.sc. in Geophysics from the University of Calgary and is a member of
the Association of Professional Engineers and Geoscientist of Alberta.
Bscf Billion standard cubic feet
BOE or boe Barrels of oil equivalent
Contingent Quantities of petroleum estimated, as at a given date,
Resources to be potentially recoverable from known accumulations,
but the applied project(s) are not yet considered
mature enough for commercial development due to one
or more contingencies
GIIP Gas Initially In Place
MMbbl Million barrels
MMboe Million barrels of oil equivalent
NPV Net present value (at a specified discount rate and
specified discount date)
PDP Proved developed producing
Gross Reserves Reserves volumes before deductions for royalty
Net Reserves Reserves volumes after deduction of royalty
1P Proved Reserves, those quantities of petroleum, which,
by analysis of geoscience and engineering data, can
be estimated with reasonable certainty to be commercially
recoverable, from a given date forward, from known
reservoirs and under defined economic conditions,
operating methods, and government regulations.
2P Proved + Probable Reserves, those additional Reserves
which analysis of geoscience and engineering data
indicate are less likely to be recovered than Proved
Reserves but more certain to be recovered than Possible
Reserves. It is equally likely that actual remaining
quantities recovered will be greater than or less
than the sum of the estimated Proved plus Probable
Reserves
3P Proved + Probable + Possible Reserves, those additional
reserves which analysis of geoscience and engineering
data suggest are less likely to be recoverable than
Probable Reserves.
Prospective Petroleum deposits that are estimated, on a given
Resources date, to be potentially recoverable from accumulations
yet to be discovered
Reserves Quantities of petroleum anticipated to be commercially
recoverable by application of development projects
to known accumulations from a given date forward under
defined conditions.
TPDC Tanzania Petroleum Development Corporation
WI Working interest attributable to Wentworth
-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
Jonathan Wright
Broker (UK)
Richard Crichton
Ross Allister
Peel Hunt LLP 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 of the disclosure requirements pursuant to
section 5-12 of the Norwegian Securities Trading Act.
180118 Press Release: http://hugin.info/136496/R/2162159/831719.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/
(END) Dow Jones Newswires
January 18, 2018 02:00 ET (07:00 GMT)
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