Wentworth Resources PLC Operational Update and Reserves Update (6072N)

TIDMWEN

RNS Number : 6072N

Wentworth Resources PLC

02 February 2021

PRESS RELEASE 2 February 2021

WENTWORTH RESOURCES PLC

("Wentworth" or the "Company")

Operational Update and Reserves Update

Wentworth Resources plc (AIM: WEN), the independent, Tanzania-focused natural gas production company, announces the following operational update and results of the year-end Competent Persons Report for 2020.

Highlights

-- To date, there have been zero reported cases of COVID-19 at Mnazi Bay. Employee safety remains a top priority and robust precautionary measures remain in place

-- Wentworth's share of gross 2P Reserves as at 31 December 2020 estimated by RPS Group to be 142.2 Bcf (23.7 mmboe) with a post-tax NPV10 of $116.6 million

   --    Debt free with $17.8 million cash on hand as at 31 December 2020 (unaudited) 
   --    Production guidance for full-year 2021 set at 65-75 MMscf/day (gross) 

Mnazi Bay Operations and Operational Outlook

-- Repairs to the MB-2 flowline were completed on time on 9 December 2020 and the well has continued to perform in line with expectations

-- A planned slickline campaign commenced on 22 January 2021 which primarily includes a continuation of the Mnazi Bay Partners' ongoing pressure monitoring programmes

Reserves Update

RPS Group, an independent third-party reserves evaluator, performed a Competent Persons Report ("CPR") for the Company with an effective date of 31 December 2020. The updated full field 2P gross reserves for Mnazi Bay are 445.3 Bcf (90.8 Bcf being Wentworth's share of net reserves). This compares to 468.9 Bcf as at 31 December 2019. As full-year 2020 gross production totaled 23.9 Bcf (gross), this demonstrates a minimal change attributable to technical and economic factors to previous reserves estimates.

The NPV10 after tax for the 2P reserves as at 31 December 2020 is $116.6 million net to Wentworth. This compares to $118.6 million for 2019. It should be noted that during 2020, Wentworth increased its cash position to $17.8 million (unaudited), while distributing $3.2 million in dividends, compared to cash of $13.5 million as at 31 December 2019.

 
                                 Reserves Summary for Mnazi Bay 
                                     as at December 31, 2020 
------------------------------------------------------------------------------------------------ 
                                  Field                        Wentworth 31.94% WI 
------------------------  ---------------------  ----------------------------------------------- 
                                Gross (1)                 Gross (1)            Net (2) Reserves 
                                 Reserves                  Reserves 
------------------------  ---------------------  --------------------------  ------------------- 
 Reserves Category         Sales    BOE (MMbbl)      Sales      BOE (MMbbl)    Sales      BOE 
                             Gas                   Gas (Bscf)                   Gas 
------------------------           ------------  ------------  ------------ 
                           (Bscf)                                             (Bscf)    (MMbbl) 
------------------------  -------  ------------  ------------  ------------  --------  --------- 
 Proved Developed 
  Producing (PDP)           90.4       15.1          28.9           4.8        24.9       4.1 
------------------------  -------  ------------  ------------  ------------  --------  --------- 
 Proved Developed          100.8       16.8          32.2           5.4        27.8       4.6 
------------------------  -------  ------------  ------------  ------------  --------  --------- 
 Total Proved Developed 
  (PD)                     191.2       31.9          61.1          10.2        52.7       8.7 
------------------------  -------  ------------  ------------  ------------  --------  --------- 
 Proved Undeveloped         48.8        8.1          15.6           2.6         2.6       0.5 
------------------------  -------  ------------  ------------  ------------  --------  --------- 
 Total Proved (1P)         240.0       40.0          76.7          12.8        55.3       9.2 
------------------------  -------  ------------  ------------  ------------  --------  --------- 
 Proved + Probable 
  (2P)                     445.3       74.2          142.2         23.7        90.8       15.1 
------------------------  -------  ------------  ------------  ------------  --------  --------- 
 Proved + Probable 
  + Possible (3P)          637.8       106.3         203.7         34.0        233.5      20.6 
 (1) Gross Reserves are Company Working Interest Share 
  of Total Field Reserves 
 (2) Net Reserves are calculated as the product of Company 
  Gross Reserves and the ratio of Company net revenue to 
  Company WI share of field gross revenue 
 
 
                    Wentworth Resources Working Interest Reserves for Mnazi Bay 
                                      as at December 31, 2020 
                                      RPS Forecast 2021-01-01 
--------------------------------------------------------------------------------------------------- 
                                 NPV Before Tax                           NPV After Tax 
 Reserves Category                 Million US$                             Million US$ 
                     --------------------------------------  -------------------------------------- 
                       0%      5%      10%     15%      20%      0%      5%     10%     15%     20% 
-------------------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------ 
 
 PROVED 
 Producing             50.1    46.3    42.8    39.7    36.9    45.8    42.6    39.5    36.7    34.2 
 Non Producing          9.6     8.8     8.1     7.5     7.0     8.9     8.1     7.5     7.0     6.5 
 Undeveloped           70.9    54.1    42.1    33.4    26.9    56.9    42.0    31.4    23.8    18.2 
 Total Proved         121.0   100.4    85.0    73.1    63.8   111.6    92.7    78.4    67.5    58.9 
 Probable              83.4    56.7    41.4    32.5    27.1    75.9    51.9    38.1    30.0    25.1 
 
 PROVED + PROBABLE    204.4   157.1   126.4   105.6    90.9   187.4   144.5   116.6    97.5    84.0 
 
 Possible              74.4    52.3    39.6    32.1    27.4    67.8    47.8    36.4    29.5    25.1 
 
 PROVED + PROBABLE 
  + POSSIBLE          278.8   209.3   166.1   137.7   118.2   255.2   192.4   152.9   127.0   109.2 
-------------------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------ 
 
   The full CPR is available on the Company's website:   www.wentplc.com/investors/documents . 

Katherine Roe, CEO, commented:

"The results of our 2020 Competent Persons Report show the continued strong technical fundamentals underlying the Mnazi Bay field and its potential to generate strong, long-term free cash flows that form the basis of our sustainable dividend policy. We look forward to continuing to use our fiscal discipline and financial performance to create further value for shareholders."

- Ends -

 
Enquiries: 
 
 Wentworth            Katherine Roe,              [e-mail] 
                      Chief Executive Officer     [phone] 
 
                      AIM Nominated Adviser & 
                      Joint Broker 
                      Callum Stewart 
  Stifel Nicolaus     Ashton Clanfield 
  Europe Ltd          Simon Mensley               [phone] 
 
 
                      Joint Broker 
                      Richard Crichton 
  Peel Hunt LLP       Alexander Allen             [phone] 
 
 
                      Communications Adviser 
                      Sara Powell 
  FTI                 Ben Brewerton               [phone] 
 
 

Notes and Glossary

These assessments are made in accordance with the standards defined in the Petroleum Resources Management System (Revised 2018) sponsored by SPE, WPC, AAPG, SPEE, SEG, SPWLA, and EAGE.

Cameron Snow, Head of Subsurface and Business Development, is a geologist with 15 years' experience across North America, South America, Africa, and Europe. He holds a BS in Geology from North Carolina State University, an MS in Geology from Utah State University, a PhD in Geological and Environmental Science from Stanford University, and an MBA from Imperial College London. Mr. Snow has read and approved the technical disclosure in this regulatory announcement.

 
Bcf/Bscf        Billion standard cubic feet 
BOE             Barrels of oil equivalent 
                ------------------------------------------------------- 
MMbbl           Million barrels 
                ------------------------------------------------------- 
MMboe           Million barrels of oil equivalent 
                ------------------------------------------------------- 
NPV             Net present value (at a specified discount rate 
                 and specified discount date) 
                ------------------------------------------------------- 
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. 
                ------------------------------------------------------- 
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. 
                ------------------------------------------------------- 
 

About Wentworth Resources

Wentworth Resources plc (AIM-listed: WEN) is a leading, domestic natural gas producer in Tanzania with a core producing asset at Mnazi Bay in the onshore Rovuma Basin in Southern Tanzania.

The power demand base in-country is growing and with an ambitious universal energy access target set by the Government for 2030, Wentworth has a vital role to play in increasing access by ensuring a reliable, affordable and growing supply of natural gas into the local market.

In 2019, Wentworth launched its dividend policy and remains committed to responsible growth that maintains returns for shareholders.

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.

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February 02, 2021 02:00 ET (07:00 GMT)