Wentworth Resources Plc Wentworth Resources Plc : Posting Of Annual Report, Notice Of 2019 Annual General Meeting, Operationa...
May 15 2019 - 2:00AM
UK Regulatory
TIDMWEN
PRESS RELEASE 15 May 2019
WENTWORTH RESOURCES PLC
("Wentworth" or the "Company")
Posting of Annual Report
Notice of 2019 Annual General Meeting
Operational Update
Wentworth (AIM: WEN), the AIM listed independent, East Africa-focused
oil & gas company, is pleased to announce the following updates.
Corporate
Further to the announcement of the Company's results for the year ended
31 December 2018 on 24 April 2019, Wentworth confirms that the Annual
Report and Financial Statements for the year ended 31 December 2018 are
available on the Company's website at www.wentplc.com
http://www.wentplc.com/ . Hard copies have today been posted to those
shareholders who elected to receive them, together with documentation
for the 2019 Annual General Meeting.
The Annual General Meeting is scheduled to be held at 10.00am on
Wednesday 26 June 2019 at the offices of Pinsent Masons, 30 Crown Place,
Earl Street, London, EC2A 4ES.
Commercial
Monthly payments continue to be consistently received from both
Tanzanian Petroleum Development Company ("TPDC") and Tanzania Electric
Supply Company Limited ("TANESCO") and arrears due from both off-takers
continue to remain at three months.
As previously announced, the 2012 Ziwani-1 exploration well and
associated 3D seismic costs were paid by Maurel et Prom ("M&P") and Cove
Energy as part consideration for their entry into the Mnazi Bay asset,
thereby fully carrying Artumas, now Wentworth, (the "Ziwani Carry"). The
net Ziwani Carry was $8.4 million. Sustained, regular payments have
enabled Wentworth to settle the Ziwani carry, with the final deduction
of $1.3 million being made in January 2019.
The Company has also made the final contingent payment to PTT
Exploration and Production Public Company Limited ("PTTEP") of $441k,
net to Wentworth. Following this payment, Wentworth has no further
ongoing liability to PTTEP.
Operational
Production guidance for 2019 of 75 - 85 MMscf/d remains unchanged.
Average production to end April 2019 was 73 MMscf/d, materially impacted
by increased hydro-electric supply during the rainy season from March
through late May and additional gas supplied into the transnational
pipeline from SongoSongo. The Company expects to see existing demand
underpinned and set to increase over the second half of 2019, due to:
-- The current wet season expected to be over by late May 2019 and thus
output from the hydro-electric plants will diminish;
-- Repairs to the three turbines at Ubungo II plant completed by end of May
2018;
-- Ongoing power evacuation problems at the Kinyerezi power stations
resolved by end of Q2 2019;
-- Kinyerezi-1 and Kinyerezi-2 power stations to run at near full capacity
for H2 2019;
-- Demand from the Dangote Cement plant expected to increase in the coming
months as gas generation increases with the retirement of its older
diesel plants;
-- The new Kinyerezi-1 Extension TANESCO facility is expected to begin its
commissioning phase starting Q3 2019, gradually bringing on-stream demand
of c.24 MMcf/d over the remainder of 2019, with final commissioning in
2020.
Workover and Pressure Monitoring. The operator, M&P, has successfully
completed a workover and pressure monitoring campaign involving
slick-line operations on the Mnazi Bay wells. The pressure monitoring
data is in-line with expectations and looks to continue for the
foreseeable future with the goal of further delineating potential upside,
especially in the lower MB sand packages. The accompanying slick-line
work performed on the MB-2, MB-3 and MB-4 wells was part of an on-going
production strategy by M&P to optimize production over the life of the
field. Further routine operations are expected throughout 2019.
Inlet pressure. TPDC agreed on 17 April 2019 to reduce the inlet
delivery pressure to the transnational pipeline at the Madimba Gas
Processing Facility ("Madimba GPF"), from 95barg to 85barg. Decreasing
the inlet delivery pressure increases volumes available prior gas
compression capex, gives the Joint Venture more flexibility to operate
the wells, allows management of the reservoir efficiently, and extends
production plateau or production at higher rates in the current
configurations, all things being equal. The Company views this as a
positive step and shows a spirit of co-operation and pragmatism amongst
the stakeholders of the Mnazi Bay Concession.
Tembo appraisal block, Mozambique. On 25 April 2019, the Company
received approval of the relinquishment of the Tembo Appraisal Block
from the Honourable Minister of Natural Resources and Energy. The
Company has now closed its office in Maputo and is working with the
Instituto Nacional de Petroleo ("INP") to transfer the remaining assets,
namely the Palma Camp back to the Government of Mozambique. Disposal of
legacy surplus drilling inventory stored at the Muxara Camp in Pemba is
expected to be completed by late May 2019. The Company is taking the
necessary actions, in accordance with Mozambique Petroleum Law and
industry best practice, to ensure that all liabilities relating to the
concession area, especially in relation to environmental issues, are
conclusively dealt with prior to a full and final exit of the block by
15 June 2019.
Eskil Jersing, CEO, commented:
"We continue to improve our fundamentals, with regular revenue receipts,
debt reduction, completion of the Ziwani carry payment and final payment
to PTTEP.
We maintain our 2019 production guidance and have line of sight to
increasing demand in H2 2019 and beyond. The agreement to an inlet
pressure reduction at Madimba is a key commercial trigger and it is
encouraging that the Joint Venture has been able to agree on a pragmatic
first step, with all the associated look-through benefits to asset
value.
Our Mozambique country exit continues smoothly, on time and with no
liability exposure.
With regards to M&A due diligence efforts, we have worked hard over the
last six months on a range of transaction options both at a Corporate
and asset level and feel confident at being able to execute on inorganic,
self-sustaining growth opportunities in 2019."
Eskil Jersing, eskil.jersing@wentplc.com
Chief Executive Officer +44 (0)118 2065427
Enquiries: Katherine Roe, katherine.roe@wentplc.com
Wentworth Chief Financial Officer +44 (0)118 2065428
AIM Nominated Adviser and Joint Broker
Callum Stewart
Ashton Clanfield
Stifel Nicolaus Europe Limited Simon Mensley +44 (0) 20 7710 7600
Joint Broker
Richard Crichton
Peel Hunt LLP James Bavister +44 (0) 20 7418 8900
Vigo Investor Relations Adviser +44 (0) 20 7390 0230
Patrick d'Ancona
Chris McMahon
About Wentworth Resources
Wentworth Resources is a publicly traded (AIM: WEN), independent oil &
gas company with natural gas production, exploration and appraisal
opportunities in the Rovuma Delta Basin of coastal southern Tanzania.
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. 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.
Posting of Annual Report, Notice of 2019 AGM, Op Update:
http://hugin.info/136496/R/2244408/886301.pdf
This announcement is distributed by West Corporation on behalf of West
Corporation 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 Plc via Globenewswire
https://www.wentplc.com
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May 15, 2019 02:00 ET (06:00 GMT)
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