Wentworth Resources Ltd Wentworth Resources Limited : Operational Update And 2018 Production Guidance

 
TIDMWRL 
 
 
 
 
 
 
   PRESS RELEASE 
 
   11 January 2018 
 
   WENTWORTH RESOURCES LIMITED 
 
   ("Wentworth" or the "Company") 
 
   Operational Update and 2018 Production Guidance 
 
   Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed 
independent, East Africa-focused oil & gas company, is today providing 
an update to shareholders. 
 
   Mnazi Bay Production, Tanzania 
 
   Gas demand for the Company's producing reserves continues to grow 
following the commissioning and startup of the country's newest 
gas-fired electrical power generation facility, Kinyerezi-2, with the 
first two of six turbines now operational. This new demand, combined 
with existing demand from the Kinyerezi-1 and Ubungo II power facilities, 
the lack of any material impact from hydro-electric power generation 
which typically occurs in Q2 and burgeoning growth in demand from 
industrial customers, culminated in a daily production exit rate for 
2017 of 73.4 MMscf/d (gross). These were the highest production volumes 
produced from the Mnazi Bay field last year. 
 
   Mnazi Bay achieved average gas production in Q4 2017 of 62.2 MMscf/d. 
Taking into account the seasonal variability of Q2 due to displacement 
hydro-electric power generation during the annual rainy season, as well 
as production from industry competitors the average production for the 
full year 2017 was 49.1 MMscf/d. This was at the upper end of the 
Company's 2017 production guidance range of 40 - 50 MMscf/d. 
 
   2018 Production Guidance and Outlook 
 
   For 2018, the Company anticipates further growth in gas demand from the 
Kinyerezi-2 power facility as an additional four gas-fired turbines are 
expected to be commissioned during the year. New gas demand from the 
industrial sector in 2018 is also expected from the Dangote Cement 
factory when it begins using natural gas for in its operations as well 
as other new industrial customers. 
 
   For 2018, based on growing demand and taking into account the annual, 
seasonal lower demand during the Q2 rainy season, full year average 
production, is expected to be in the range of 65 to 75 MMscf/d.  The 
Company will continue to update the market as new sources of demand 
materialise. 
 
   Tembo Appraisal, Mozambique 
 
   Design and procurement activities for the drilling of an appraisal well 
of the Tembo-1 gas discovery, are ongoing concurrent with the farm-out 
process to secure an industry partner to participate in the appraisal 
programme. The Company anticipates the drilling of the appraisal well in 
Q3 2018, subject to securing a partner. 
 
   Bob McBean, Executive Chairman, said: 
 
   "I am very pleased with the growth in production during the second half 
of 2017 and optimistic that we will achieve a yearly average production 
rate of 65 to 75 MMscf/d in 2018. This increase in demand will enable 
Wentworth to continue to strengthen its balance sheet by building up its 
cash reserves over the course of this year and to pursue new 
opportunities to deliver an increase in value to our shareholders." 
 
   -Ends- 
 
 
 
 
Enquiries: 
                  Geoffrey Bury,                                                     [e-mail] 
Wentworth          Managing Director                                                       [phone] 
 
                  Lance Mierendorf,                                            [e-mail] 
                   Chief Financial Officer                                                 [phone] 
                  Katherine Roe                                                 [e-mail] 
                   Vice President Corporate Development & Investor Relations               [phone] 
Stifel Nicolaus 
 Europe Limited   AIM Nominated Adviser and Broker (UK)                                           [phone] 
                  Callum Stewart 
                  Ashton Clanfield 
GMP FirstEnergy   Broker (UK)                                                                     [phone] 
 Hugh Sanderson 
  David van Erp 
                  Broker (UK) 
  Peel Hunt LLP    Richard Crichton                                              [phone] 
                   Ross Allister 
                   Chris Burrows 
FTI Consulting    Investor Relations Adviser (UK)                              [e-mail] 
                                                                                [phone] 
 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 to the disclosure requirements pursuant to 
section 5-12 of the Norwegian Securities Trading Act. 
 
   180111 Press Release: http://hugin.info/136496/R/2160726/830988.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 11, 2018 02:00 ET (07:00 GMT)

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