Wentworth Resources Plc Production Guidance And Operational Update
June 27 2019 - 1:00AM
UK Regulatory
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, eskil.jersing@wentplc.com
Chief Executive Officer +44 (0)118 2065427
Enquiries: Katherine Roe, katherine.roe@wentplc.com
Wentworth Chief Financial Officer +44 (0)118 2065428
--------------------------
AIM Nominated Adviser and Joint Broker
Callum Stewart
Ashton Clanfield
Stifel Nicolaus Europe Limited Simon Mensley +44 (0) 20 7710 7600
Joint Broker
Richard Crichton
Peel Hunt LLP James Bavister +44 (0) 20 7418 8900
Vigo Investor Relations Adviser +44 (0) 20 7390 0230
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
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