Wentworth Resources Plc Wentworth Resources Plc : Posting Of Annual Report, Notice Of 2019 Annual General Meeting, Operationa...

 
TIDMWEN 
 
 
 
 
   PRESS RELEASE                                                                                                      15 May 2019 
 
 
 
 
 
 
   WENTWORTH RESOURCES PLC 
 
   ("Wentworth" or the "Company") 
 
 
 
   Posting of Annual Report 
 
   Notice of 2019 Annual General Meeting 
 
   Operational Update 
 
 
 
   Wentworth (AIM: WEN), the AIM listed independent, East Africa-focused 
oil & gas company, is pleased to announce the following updates. 
 
 
 
   Corporate 
 
 
 
   Further to the announcement of the Company's results for the year ended 
31 December 2018 on 24 April 2019, Wentworth confirms that the Annual 
Report and Financial Statements for the year ended 31 December 2018 are 
available on the Company's website at www.wentplc.com 
http://www.wentplc.com/ . Hard copies have today been posted to those 
shareholders who elected to receive them, together with documentation 
for the 2019 Annual General Meeting. 
 
 
 
   The Annual General Meeting is scheduled to be held at 10.00am on 
Wednesday 26 June 2019 at the offices of Pinsent Masons, 30 Crown Place, 
Earl Street, London, EC2A 4ES. 
 
 
 
   Commercial 
 
 
 
   Monthly payments continue to be consistently received from both 
Tanzanian Petroleum Development Company ("TPDC") and Tanzania Electric 
Supply Company Limited ("TANESCO") and arrears due from both off-takers 
continue to remain at three months. 
 
 
 
   As previously announced, the 2012 Ziwani-1 exploration well and 
associated 3D seismic costs were paid by Maurel et Prom ("M&P") and Cove 
Energy as part consideration for their entry into the Mnazi Bay asset, 
thereby fully carrying Artumas, now Wentworth, (the "Ziwani Carry"). The 
net Ziwani Carry was $8.4 million. Sustained, regular payments have 
enabled Wentworth to settle the Ziwani carry, with the final deduction 
of $1.3 million being made in January 2019. 
 
 
 
   The Company has also made the final contingent payment to PTT 
Exploration and Production Public Company Limited ("PTTEP") of $441k, 
net to Wentworth. Following this payment, Wentworth has no further 
ongoing liability to PTTEP. 
 
 
 
 
 
   Operational 
 
 
 
   Production guidance for 2019 of 75 - 85 MMscf/d remains unchanged. 
Average production to end April 2019 was 73 MMscf/d, materially impacted 
by increased hydro-electric supply during the rainy season from March 
through late May and additional gas supplied into the transnational 
pipeline from SongoSongo. The Company expects to see existing demand 
underpinned and set to increase over the second half of 2019, due to: 
 
 
 
 
   -- The current wet season expected to be over by late May 2019 and thus 
      output from the hydro-electric plants will diminish; 
 
   -- Repairs to the three turbines at Ubungo II plant completed by end of May 
      2018; 
 
   -- Ongoing power evacuation problems at the Kinyerezi power stations 
      resolved by end of Q2 2019; 
 
   -- Kinyerezi-1 and Kinyerezi-2 power stations to run at near full capacity 
      for H2 2019; 
 
   -- Demand from the Dangote Cement plant expected to increase in the coming 
      months as gas generation increases with the retirement of its older 
      diesel plants; 
 
   -- The new Kinyerezi-1 Extension TANESCO facility is expected to begin its 
      commissioning phase starting Q3 2019, gradually bringing on-stream demand 
      of c.24 MMcf/d over the remainder of 2019, with final commissioning in 
      2020. 
 
 
 
 
   Workover and Pressure Monitoring. The operator, M&P, has successfully 
completed a workover and pressure monitoring campaign involving 
slick-line operations on the Mnazi Bay wells.  The pressure monitoring 
data is in-line with expectations and looks to continue for the 
foreseeable future with the goal of further delineating potential upside, 
especially in the lower MB sand packages.  The accompanying slick-line 
work performed on the MB-2, MB-3 and MB-4 wells was part of an on-going 
production strategy by M&P to optimize production over the life of the 
field.  Further routine operations are expected throughout 2019. 
 
 
 
   Inlet pressure. TPDC agreed on 17 April 2019 to reduce the inlet 
delivery pressure to the transnational pipeline at the Madimba Gas 
Processing Facility ("Madimba GPF"), from 95barg to 85barg. Decreasing 
the inlet delivery pressure increases volumes available prior gas 
compression capex, gives the Joint Venture more flexibility to operate 
the wells, allows management of the reservoir efficiently, and extends 
production plateau or production at higher rates in the current 
configurations, all things being equal.   The Company views this as a 
positive step and shows a spirit of co-operation and pragmatism amongst 
the stakeholders of the Mnazi Bay Concession. 
 
 
 
   Tembo appraisal block, Mozambique. On 25 April 2019, the Company 
received approval of the relinquishment of the Tembo Appraisal Block 
from the Honourable Minister of Natural Resources and Energy. The 
Company has now closed its office in Maputo and is working with the 
Instituto Nacional de Petroleo ("INP") to transfer the remaining assets, 
namely the Palma Camp back to the Government of Mozambique. Disposal of 
legacy surplus drilling inventory stored at the Muxara Camp in Pemba is 
expected to be completed by late May 2019.  The Company is taking the 
necessary actions, in accordance with Mozambique Petroleum Law and 
industry best practice, to ensure that all liabilities relating to the 
concession area, especially in relation to environmental issues, are 
conclusively dealt with prior to a full and final exit of the block by 
15 June 2019. 
 
 
 
   Eskil Jersing, CEO, commented: 
 
 
 
   "We continue to improve our fundamentals, with regular revenue receipts, 
debt reduction, completion of the Ziwani carry payment and final payment 
to PTTEP. 
 
 
 
   We maintain our 2019 production guidance and have line of sight to 
increasing demand in H2 2019 and beyond. The agreement to an inlet 
pressure reduction at Madimba is a key commercial trigger and it is 
encouraging that the Joint Venture has been able to agree on a pragmatic 
first step, with all the associated look-through benefits to asset 
value. 
 
 
 
   Our Mozambique country exit continues smoothly, on time and with no 
liability exposure. 
 
 
 
   With regards to M&A due diligence efforts, we have worked hard over the 
last six months on a range of transaction options both at a Corporate 
and asset level and feel confident at being able to execute on inorganic, 
self-sustaining growth opportunities in 2019." 
 
 
 
 
 
 
                                   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. 
 
 
 
   Posting of Annual Report, Notice of 2019 AGM, Op Update: 
http://hugin.info/136496/R/2244408/886301.pdf 
 
   This announcement is distributed by West Corporation on behalf of West 
Corporation 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 Plc via Globenewswire 
 
 
  https://www.wentplc.com 
 

(END) Dow Jones Newswires

May 15, 2019 02:00 ET (06:00 GMT)

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