Wentworth Resources Limited : Operational Update
July 19 2017 - 1:00AM
PRESS RELEASE
19 July 2017
WENTWORTH
RESOURCES LIMITED
("Wentworth" or "the Company")
Operational
Update
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.
Further to the Operational Update
in June 2017 including an update on the Company's Mnazi Bay asset
in Tanzania, Wentworth is pleased to report that further payments
have been received from Tanzania Petroleum Development Corporation
("TPDC") and Tanzania Electric Supply Company Limited ("TANESCO")
totalling $1.2 million net to Wentworth, bringing the total cash
received for invoiced gas sales to $7.9 million in 2017. Since 31
March 2017, receivables from TPDC have remained consistent at four
months and receivables from TANESCO have improved from thirteen
months to eight months. The Mnazi Bay Partners continue to work
closely with the Government of Tanzania to settle the remaining
outstanding invoices.
As expected, daily production
volumes during the rainy months of April and May were impacted by
the use of hydroelectric power. However, since the end of the rainy
season, gas demand has increased with June volumes averaging 45
MMscf/d bringing the average for Q2 to 31 MMscf/d. Furthermore, the
Company has experienced a temporary increase in volumes since the
start of Q3 due to maintenance work elsewhere in the pipeline
system with July month-to-date averaging 71 MMscf/d. We maintain
our guidance for 2017 averaging between 40 - 50 MMscf/d.
In relation to the recent
legislative changes in Tanzania and the introduction of three new
bills relating to the mining and oil & gas sectors, the Company
has undertaken a review of these new laws to determine their
implications on the Company's Tanzania operations. Based on our
current understanding of this new legislation and given the
existing terms and conditions of our relevant agreements we do not
anticipate any material impact on our existing operations.
The Company will report Q2 results
on 10 August 2017 and will be holding a conference call for
analysts and shareholders that day.
Geoff Bury, Managing Director,
commented:
"We are pleased
to have received further payments from TPDC and TANESCO which
demonstrates their commitment to settle invoices as soon as
practicable. The payments received year to date have enabled the
Company to meet its obligations and we continue, along with our
Operator, Maurel et Prom, to work with the Government to resolve
the payment delays and clear all arrears. It is very encouraging to
see production volumes increase post the end of the rainy season
and we remain confident in achieving our production guidance for
the year."
-Ends-
Enquiries: |
|
|
Wentworth |
Geoffrey
Bury,
Managing Director |
gpb@wentworthresources.com
+1 403 993 4450 |
|
|
|
|
Lance
Mierendorf,
Chief Financial Officer
|
lance.mierendorf@wentworthresources.com
+1 403 680 8773 |
|
Katherine
Roe
Vice President Corporate Development & Investor
Relations
|
katherine.roe@wentworthresources.com
+44 7841 087 230 |
Crux Advisers |
Investor Relations Adviser
(Norway) |
+47 909 808 48 |
|
Carl
Bachke
|
|
Stifel Nicolaus Europe Limited |
AIM Nominated Adviser and Broker (UK) |
+44 (0)
20 7710 7600 |
|
Callum
Stewart |
|
|
Ashton
Clanfield
|
|
FirstEnergy Capital |
Broker (UK) |
+44 (0)
20 7448 0200 |
|
Hugh
Sanderson
|
|
FTI Consulting |
Investor Relations Adviser (UK) |
wentworth@fticonsulting.com
+44 (0) 20 3727 1000 |
|
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.
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.
170719 Announcement
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
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