TIDMWEN
RNS Number : 8917L
Wentworth Resources PLC
11 September 2019
PRESS RELEASE 11 September 2019
WENTWORTH RESOURCES PLC
("Wentworth" or the "Company")
Commercial Operations Date achieved
Wentworth (AIM: WEN), the AIM listed independent, East
Africa-focused oil & gas company is pleased to announce the
formal signing of the Commercial Operations Date agreement ("COD"),
a key commercial milestone for Wentworth and the Mnazi Bay Joint
Venture Partners.
Further to a signing ceremony held yesterday in Dar es Salaam,
Tanzania Petroleum Development Corporation ("TPDC"), Etablissements
Maurel et Prom S.A. ("M&P") and Wentworth, together, the Mnazi
Bay Joint Venture Partners (" JV Partners"), approved the signing
of the COD in relation to all terms of the Gas Sales Agreement
("GSA") signed by the JV Partners on 12 September 2014 and which
are now in effect.
The agreement on declaration of COD also includes treatment of
the outstanding invoices in accordance with GSA payment
arrangements, such that any outstanding arrears are cleared by 30
June 2020.
The COD officially marks the end of the commissioning and
testing phase of Mnazi Bay gas production into the National Natural
Gas Infrastructure ("NNGI"), the transnational pipeline, which
commenced in August 2015. It further demonstrates that all
facilities in connection with this GSA have been fully tested and
commissioned to ensure reliability and compliance with established
commercial practices.
Reaching COD is a key operational and commercial milestone for
Wentworth as it ensures the GSA is fully binding, including, but
not limited to:
-- Certainty of tenure and off-take gas price tariff through to 2031;
-- Minimum daily committed quotient ("DCQ") of 80 MMscf/d,
rising to 130 MMscf/d, for the entire remaining term of the
GSA;
-- Enforceability of a "take or pay" provision at 85% of the DCQ; and
-- An improved framework for gas nominations procedures.
Wentworth has previously set out four key value catalysts for
the joint venture, with a view to reaching a 130 MMscf/d production
plateau and unlocking the material remaining prospective resources
on the Mnazi Bay asset. Having successfully agreed an initial
reduction of the NNGI inlet pressure to the Madimba gas receiving
facility in April 2019, from 95bar to 85bar, achieving the COD
secures a further key milestone for the Company.
Regarding field operational activities, the slickline and
pressure monitoring campaigns continue and the Company is engaged
in regular dialogue with M&P, the Operator, in relation to the
optimal production strategies for the asset. Following the ongoing
Production Sharing Agreement ("PSA") reviews, the Partners will
look to secure a licence extension beyond 2031 to allow the joint
venture to unlock the material prospective resources remaining in
the concession.
Eskil Jersing, CEO, commented:
"This is a significant milestone for the Mnazi Bay asset that
Maurel et Prom and Wentworth have been working towards for some
time. Achieving the COD and securing the full GSA is further
indication of the excellent collaboration between the Tanzanian
Government and the Mnazi Bay partnership to secure gas supplies for
a rapidly growing domestic market.
"We believe Wentworth is well placed to supply this market from
an annuity-like asset which also has material remaining upside.
This confidence in the Mnazi Bay gas fields and developing market
has been shown by our recent introduction of a dividend policy.
"We would like to thank our partners, Maurel et Prom and TPDC,
in particular; for their continued collaboration as we continue to
supply domestic gas in a safe and reliable manner for the country
of Tanzania."
Enquiries: Eskil Jersing, eskil.jersing@wentplc.com
Wentworth Chief Executive Officer +44 (0)118 2065427
Katherine Roe, katherine.roe@wentplc.com
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
Investor Relations Adviser
Patrick d'Ancona
Vigo Chris McMahon +44 (0) 20 7390 0230
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-
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END
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