Wentworth Resources Ltd Wentworth Resources Limited : Tanzania Reserves Update

 
TIDMWRL 
 
 
 
 
 
 
   PRESS RELEASE 
 
   9 March 2017 
 
   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 an 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 2016: 
 
 
   -- Net Proved + Probable (2P) reserves are valued at US$180.3 million after 
      tax (NPV10) 
 
   -- Proved (1P) reserves: 110.1 Bscf gross (18.3 MMboe); 79.8 Bscf net (13.3 
      MMboe) 
 
   -- Proved + Probable (2P) reserves: 181.0 Bscf gross (30.2 MMboe); 115.9 
      Bscf net (19.3 MMboe) 
 
   -- Proved, Probable & Possible (3P) reserves:  270.7 Bscf gross (45.1 
      MMboe); 156.5 Bscf net (26.1 MMboe) 
 
 
   In the first full year of production, all wells have produced as 
expected, underpinning the quality of the Company's assets in Tanzania. 
With Mnazi Bay gas production from the existing gas wells stabilising 
and the expected significant ramp up in volumes starting in 2018 in line 
with the expected start-up of the new power plants, Kinyerezi I 
expansion and Kinyerezi II, the existing reserves provide a solid 
foundation to grow production from the Mnazi Bay concession in the near 
future.  Wentworth holds 31.94% ownership in the Mnazi Bay Concession. 
 
   Geoff Bury, Managing Director, commented: 
 
   "We are delighted that this 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 and 
reinforces the potential of the Mnazi Bay fields. With production 
expected to materially ramp up in 2018, the 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, 2016 
Reserve 
Category            Full Field                Wentworth 31.94% WI 
                  Gross Reserves     Gross (1) Reserves    Net(2) Reserves 
                Sales Gas    BOE     Sales Gas     BOE    Sales Gas    BOE 
                 (Bscf)    (MMbbl)    (Bscf)     (MMbbl)   (Bscf)    (MMbbl) 
 PDP                105.1     17.5         33.6      5.6       27.2      4.5 
 PD                 160.1     26.7         51.1      8.5       42.1      7.0 
 1P                 344.6     57.4        110.1     18.3       79.8     13.3 
 2P                 566.6     94.4        181.0     30.2      115.9     19.3 
 3P                 847.6    141.3        270.7     45.1      156.5     26.1 
 
 
   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, 2016 
                   NPV Before Tax (Millions US$) using discount factor 
Reserve Category    of 
                           0%           5%         10%         15%         20% 
 Proved 
 Producing               86.5         79.1        72.6        67.0        62.1 
 Non Producing           26.5         22.2        18.5        15.4        12.9 
 Undeveloped            100.4         72.3        53.2        39.9        30.4 
 Total Proved           213.4        173.7       144.4       122.3       105.4 
 Probable                92.5         62.2        45.9        36.7        31.2 
 Proved + 
  Probable              305.9        235.9       190.3       159.0       136.5 
 Possible               131.3         70.0        40.0        24.7        16.5 
 Proved + 
  Probable + 
  Possible              437.2        305.8       230.3       183.7       153.0 
 
 
 
 
              Wentworth Resources Working Interest Reserves for 
                                   Mnazi Bay 
                           as at December 31, 2016 
                        NPV After Tax (Millions US$) using discount factor 
Reserve Category                                of 
                            0%          5%         10%         15%         20% 
 Proved 
 Producing                85.2        78.0        71.7        66.2        61.4 
 Non Producing            23.8        20.1        16.8        14.1        11.8 
 Undeveloped              92.7        66.8        49.1        36.8        28.0 
 Total Proved            201.7       164.9       137.7       117.1       101.2 
 Probable                 84.8        57.4        42.6        34.2        29.2 
 Proved + Probable       286.5       222.3       180.3       151.3       130.3 
 Possible                120.5        64.5        37.1        23.0        15.4 
 Proved + Probable 
  + Possible             407.0       286.8       217.3       174.3       145.8 
 
 
   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- 
 
   The information contained within this announcement is considered to be 
inside information prior to its release, as defined in Article 7 of the 
Market Abuse Regulation No. 596/2014, and is disclosed in accordance 
with the Company's obligations under Article 17 of those Regulations. 
 
 
 
 
Enquiries: 
              Geoffrey Bury,                                                     [e-mail] 
               Managing Director                                                       [phone] 
 
              Lance Mierendorf,                                            [e-mail] 
Wentworth      Chief Financial Officer                                                 [phone] 
              Katherine Roe 

               Vice President Corporate Development & Investor Relations    [e-mail] 
               &                                                                       [phone] 
Crux          Investor Relations Adviser 
 Advisers      (Norway)                                                                             [phone] 
              Carl Bachke 
Stifel 
 Nicolaus 
 Europe 
 Limited      AIM Nominated Adviser and Broker (UK)                                           [phone] 
              Callum Stewart 
               Nicholas Rhodes 
              Ashton Clanfield 
FirstEnergy 
 Capital      Broker (UK)                                                                     [phone] 
 Hugh Sanderson 
FTI           Investor Relations Adviser (UK)                              [e-mail] 
 Consulting                                                                 [phone] 
 Edward Westropp 
 
 
 
   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. 
 
   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, 2015, 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. 
 
   2017 03 09 Press Release: http://hugin.info/136496/R/2086399/787225.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

March 09, 2017 02:00 ET (07:00 GMT)

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