TIDMWEN
RNS Number : 7992T
Wentworth Resources PLC
19 November 2019
PRESS RELEASE 19 November 2019
WENTWORTH RESOURCES PLC
("Wentworth" or the "Company")
Production Guidance and Operational Update
Wentworth (AIM: WEN), the AIM listed independent, East
Africa-focused natural gas company announces the following
operational update.
Highlights
-- Average Q3 production of 77.93 MMscf/d
-- Anticipated full year average daily Mnazi Bay production
within guidance; range tightened to 68 - 72 MMscf/d from 60 - 75
MMscf/d
-- Recompletion of MB-4 anticipated to offset production loss from MB-2
-- Maiden dividend paid in October 2019
-- Debt free expected in January 2020
Mnazi Bay Operations
Average production for the ten months to 31 October 2019 was
70.35 MMscf/d gross, with full year production currently
anticipated to be within the range of 68 - 72 MMscf/d. Q3
production averaged 77.93 MMscf/d; however, this was constrained by
the MB-2 well being temporarily shut-in due to a rupture in the
flowline between MB-2 and the MB-3 cluster.
The Mnazi Bay Joint Venture Partners ("JV Partners") are
currently assessing all options for bringing the MB-2 well back
online in a timely manner. In the interim, the JV Partners are
planning the recompletion of the MB-4 well to the Lower Mnazi Bay
sands. This will allow for production of c. 90 MMscf/d gross from
the field, expected to commence in December, whilst the MB-2
repairs are ongoing, allowing the JV Partners to meet Tanzania's
existing and growing demand for natural gas.
The Company expects to see production increase through the
remainder of 2019, due to:
-- Increased utilisation of gas-to-power generation over hydro;
and specifically, in relation to the Kinyerezi-1, Kinyerezi-2, and
Ubungo II power stations;
-- Demand maintained from industrial customers such as Dangote
Cement plant, which is currently using 15 MMscf/d and the Goodwill
Ceramics Factory, which is currently using 5 MMscf/d; and
-- Recompletion of the MB-4 well during the ongoing repairs to the MB-2 flowline.
For 2020, the Company expects the Mnazi Bay Field to have
increased deliverability as the JV Partners continue to execute on
its field development and optimisation plans. The work programme
anticipated during 2020 includes:
-- Repairing the MB-2 flowline to restore production from the well (ongoing);
-- Removing the plug from MB-4 to add production from the Lower
Mnazi Bay sands (late Nov - Dec); and
-- Replacing the chokes on the MB-2, MB-3, MB-4 and MS-1X wells in Q1 2020.
This minimal capex programme will allow the field to meet the
increased demand that is expected once the Kinyerezi-1 extension is
completed and commissioned, expected, mid-late 2020.
The Company also continues to receive consistent monthly
payments from both Tanzanian Petroleum Development Company ("TPDC")
and Tanzania Electric Supply Company Limited ("TANESCO"), with
receivables from TPDC now standing at one month. As previously
announced, the Company anticipates being debt free in Q1 2020 with
its final debt repayment of $1.67 million due in January 2020. The
Company's gross cash balance at 31 October 2019 was c.$14
million.
Katherine Roe, Interim CEO and CFO, commented:
"We have established a highly robust operational and commercial
foundation for the business. We are working well with our JV
Partners to ensure we achieve optimal field management and are
fully aligned with our Operator on remedial works for MB-2 and
recompletion plans for MB-4. Stable production from the field to
meet existing and growing demand is allowing the JV Partners to
anticipate higher production levels into 2020 and we will look to
provide full year 2020 production guidance early in the new year.
Receivables are now the lowest the JV Partners have experienced
since production into the transnational pipeline began. With a near
debt free position, growing cash balance, a maiden dividend paid
last month and a simplified corporate platform, Wentworth is in
robust financial health and well positioned to meet the increasing
demand we foresee in Tanzania."
Enquiries:
Wentworth Katherine Roe, katherine.roe@wentplc.com
Interim CEO and Chief Financial Officer +44 (0)118 2065428
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
Investor Relations Adviser
Patrick d'Ancona
Vigo Chris McMahon +44 (0) 20 7390 0230
About Wentworth Resources
Wentworth Resources is a publicly traded (AIM: WEN), independent
natural gas company with production, exploration and appraisal
opportunities for domestic power generation and local industry 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.
-Ends-
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END
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