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 |
-
Gross Reserves are Wentworth's
working interest share of Total Field Reserves.
-
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 |
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 |
Stifel Nicolaus Europe Limited |
AIM Nominated Adviser and Broker (UK) |
+44 (0)
20 7710 7600 |
|
Callum
Stewart |
|
|
Ashton
Clanfield
|
|
GMP FirstEnergy |
Broker (UK) |
+44 (0)
20 7448 0200 |
|
Hugh
Sanderson
Jonathan Wright
|
|
Peel Hunt LLP
|
Broker (UK)
Richard Crichton
Ross Allister
Chris Burrows
|
+44 (0)
20 7418 8900
|
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.
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
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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