Wentworth Resources Limited : Tanzania Reserves Update

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 (Bscf)	BOE (MMbbl)	Sales Gas (Bscf)	BOE (MMbbl)	Sales Gas (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
Reserve Category	NPV Before Tax (Millions US$) using discount factor 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
Reserve Category	NPV After Tax (Millions US$) using discount factor 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 Resources	Quantities of petroleum estimated, as at a given date, 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 Resources	Petroleum deposits that are estimated, on a given 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:
Wentworth	Geoffrey Bury, Managing Director	[e-mail] [phone]
	Lance Mierendorf, Chief Financial Officer	[e-mail] [phone]
	Katherine Roe Vice President Corporate Development & Investor Relations	[e-mail] [phone]
Stifel Nicolaus Europe Limited	AIM Nominated Adviser and Broker (UK)	[phone]
	Callum Stewart
	Ashton Clanfield
GMP FirstEnergy	Broker (UK)	[phone]
	Hugh Sanderson Jonathan Wright
Peel Hunt LLP	Broker (UK) Richard Crichton Ross Allister Chris Burrows	[phone]
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 of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

180118 Press Release

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Source: Wentworth Resources Limited via Globenewswire