Wentworth Resources Limited : Wentworth Resources Limited : Operations Update
24 APRIL 2013
WENTWORTH RESOURCES LIMITED
("Wentworth" or the "Company")
Wentworth, the East Africa and Rovuma Basin-focused oil & gas company,
announces the following operations update:
Mnazi Bay Exploration
The 248km² of new 3D seismic recently acquired offshore Mnazi Bay is currently
being processed and interpreted with full results expected in the third
quarter 2013. The acquisition of additional onshore 2D seismic is being
considered and the concession partners have agreed to drill one well in the
fourth quarter of this year, subject to identifying a drillable prospect after
taking into account the interpreted offshore 3D, existing 2D and possible
additional onshore seismic.
Mnazi Bay to Dar es Salaam Gas Pipeline Project
China National Petroleum Corporation (CNPC) recently awarded a US$45 million
contract to Zhejiang Kingland Pipeline & Technologies to supply spiral and
longitudinal submerged arc welded pipe for the Mnazi Bay to Dar es Salaam
natural gas pipeline project ("Pipeline"). Wentworth has been advised by the
government that the Pipeline is expected to be completed in the second half of
Gas Sales Agreement for Mnazi Bay Concession
Negotiations with the Government of Tanzania for a gas sales agreement ("GSA")
for a minimum of 80 mmscf/d (gross) and 25.6 mmcf/d (net to Wentworth), with
the potential to increase it to 130 mmcf/d (gross) and 41.5 mmcf/d (net to
Wentworth), subject to available gas resources, of Mnazi Bay concession
natural gas to supply the Pipeline are ongoing and the execution of that GSA
is expected in the near term. The commencement of gas sales to the Pipeline
will unlock Wentworth's cost recovery pools, which currently total
approximately US$80 million (net to Wentworth), and is expected to result in
the recovery of the US$35 million receivable (net to Wentworth) from Tanzania
Petroleum Development Corporation. Recovery of this receivable is expected
within 18 months following commencement of gas sales to the Pipeline.
Onshore Rovuma 2D Seismic & Drilling
Wentworth's partner and concession operator, Anadarko Petroleum, advised that,
pursuant to the provisions of the Petroleum Law of Mozambique, a request to
extend the second exploration period of the Exploration and Production
Concession Contract for the Rovuma Block Onshore Area has been approved by the
Government. The second exploration period now ends on 31 August 2014. The
concession partners have agreed to drill two wells back-to-back in 2014 with
an option for a third well. The partners are awaiting execution of the rig
This extension will give the concession partners time to finalize the detailed
processing and interpretation of the new 2D seismic and to optimize the usage
of the drilling rig when secured. Spudding of the first well is expected by
the end of the second quarter 2014 with the second well expected to spud
immediately following completion of the drilling operations of the first well.
The drilling of the first and second wells shall satisfy the exploration work
commitments of the second and third exploration periods respectively.
Geoff Bury, Managing Director added: "This is an exciting time in our
Company's history. The new gas pipeline being built in Tanzania brings a large
untapped market to our doorstep. We are preparing for the very first large
scale production of Mnazi Bay gas to serve that market. Our G&G and other
exploration work is paying off and we are preparing to drill new exploration
and development wells in Tanzania and Mozambique."
"We are grateful to the government of Mozambique for granting additional time
to complete the concession's second exploration work program. The extension
enables us to fully evaluate the new 2D seismic that has recently been
acquired over the north central and northern coastal sections of the
concession; commit to a second firm exploration well; and provides sufficient
time within the weather window to drill an optional third well. Our operator
in Mozambique, Anadarko, is gearing up for onshore exploration drilling which
Wentworth believes is on trend with the recent massive offshore Rovuma Basin
natural gas discoveries."
Wentworth Geoff Bury, Managing Director email@example.com
Eric Fore, Finance, Investor & firstname.lastname@example.org
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Carl Christian Bachke
About Wentworth Resources
Wentworth Resources is a publicly traded (OSE:WRL, AIM:WRL), independent oil &
gas company with: natural gas production; midstream assets; a committed
exploration and appraisal drilling programme; and large-scale gas monetisation
opportunities, all in the Rovuma Delta Basin of coastal southern Tanzania and
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, 2012, available on
Wentworth's website, for further description of the risks and uncertainties
associated with Wentworth's business.
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.
2013 04 24 Press Release
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information contained therein.
Source: Wentworth Resources Limited via Thomson Reuters ONE
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