Wentworth Resources Plc Production Guidance And Operational Update

 
TIDMWEN 
 
 
   PRESS RELEASE                                                                                                                  27 June 2019 
 
 
   WENTWORTH RESOURCES PLC 
 
   ("Wentworth" or the "Company") 
 
   Production Guidance and Operational Update 
 
   Wentworth (AIM: WEN), the AIM listed independent, East Africa-focused 
oil & gas company announces the following operational update. 
 
   Mnazi Bay Operations 
 
   Average production to 24 June 2019 was 65.6 MMscf/d, gross, impacted in 
Q2 2019 by increased hydro-electric supply during the rainy season. The 
wet season is now over and output from the hydro-electric power plants 
is starting to diminish. 
 
   As previously announced, the Company expects to see existing demand 
underpinned and set to increase over the second half of 2019, due to: 
 
 
   -- Repairs to turbines at Ubungo II plant now complete; 
 
   -- Ongoing power evacuation problems at the Kinyerezi power stations now 
      resolved by completion of the K-1 transmission station in May 2019; 
 
   -- Kinyerezi-1 and Kinyerezi-2 power stations are running at near full 
      capacity and are expected to continue throughout H2 2019; 
 
   -- Demand from the Dangote Cement plant (power and clinker needs) is 
      expected to reach up to 20 MMscfd in H2 2019; and 
 
   -- The new Kinyerezi-1 Extension TANESCO facility is expected to begin its 
      commissioning phase starting Q4 2019, gradually bringing on-stream demand 
      of up to 30 MMcf/d into 2020. 
 
 
   Production has additionally been impacted by additional gas supplied 
into the transnational pipeline from the SongoSongo field, following the 
signing of a new Gas Sales Agreement ("GSA") with the government of 
Tanzania in May 2019 by Pan African Energy Tanzania Limited ("PAET"). 
PAET are currently supplying c.20 MMScf/d into the National Natural Gas 
Pipeline ("NNGP") and the Company anticipates that this additional 
supply will continue throughout H2 2019. 
 
   As a result of the above, full year average daily Mnazi Bay production 
for 2019 is now expected to be in the range of 60 to 75 MMscf/d. 
 
   As previously announced and planned, routine workover and pressure 
monitoring will continue throughout H2 2019 in order to optimise the 
performance of the field. 
 
   Thanks to consistent monthly payments that continue to be received from 
both Tanzanian Petroleum Development Company ("TPDC") and Tanzania 
Electric Supply Company Limited ("TANESCO"), the Company continues to 
deleverage its balance sheet and comfortably meet its debt obligations, 
which now stand at $5 million. The Company anticipates being debt free 
in Q1 2020 with a final debt repayment in January 2020; cash balance at 
31 May 2019 was $10.6 million. 
 
   Eskil Jersing, CEO, commented: 
 
   "We have adjusted our 2019 production guidance to take into account the 
additional 20 MMscf/d supplied into the NNGP from the only other 
in-country supplier, due to a new GSA executed post our 11 January 2019 
guidance. Demand outlook continues to be strong and the Mnazi Bay joint 
venture partners continue to be well placed to supply that demand into 
the later part of 2019 and beyond. 
 
   "Regular, timely receipt of invoices enables us to repay our existing 
term loan whilst building cash and benefiting from reduced corporate 
costs post the redomicile last year. 
 
   "Finally, I am pleased to say that our Mozambique country exit has been 
executed smoothly and with no liability exposure or any ongoing forward 
costs." 
 
 
 
 
                                   Eskil Jersing,                             [e-mail] 
                                    Chief Executive Officer                       [phone] 
Enquiries:                          Katherine Roe,                             [e-mail] 
 Wentworth                          Chief Financial Officer                       [phone] 
                                                                              -------------------------- 
 
                                     AIM Nominated Adviser and Joint Broker 
                                     Callum Stewart 
                                     Ashton Clanfield 
  Stifel Nicolaus Europe Limited     Simon Mensley                                [phone] 
 
                                   Joint Broker 
                                    Richard Crichton 
 Peel Hunt LLP                      James Bavister                                  [phone] 
 
  Vigo                               Investor Relations Adviser                 [phone] 
                                     Patrick d'Ancona 
                                     Chris McMahon 
 
 
   About Wentworth Resources 
 
   Wentworth Resources is a publicly traded (AIM: WEN), independent oil & 
gas company with natural gas production, exploration and appraisal 
opportunities 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- 
 
 
 
 
 
   Attachment 
 
 
   -- 270619 Operation Update RNS FINAL 
      https://ml-eu.globenewswire.com/Resource/Download/684735d5-40f8-4aeb-81c1-9e70928e3156 
 
 
 
 
 

(END) Dow Jones Newswires

June 27, 2019 02:00 ET (06:00 GMT)

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