Wentworth Resources PLC Strategy/Company/Ops Update (5167F)
10 Marzo 2020 - 1:00AM
UK Regulatory
TIDMWEN
RNS Number : 5167F
Wentworth Resources PLC
10 March 2020
PRESS RELEASE 10 March 2020
WENTWORTH RESOURCES PLC
("Wentworth" or the "Company")
Update
Wentworth (AIM: WEN), the AIM listed independent, East
Africa-focused natural gas company provides the following update,
in light of the fall in oil prices and global stock markets.
Commodity Pricing
Wentworth sells its gas under long-term fixed price contracts
that provide for price escalations based on the US consumer price
index. Wentworth currently sells gas under two contracts:
1. to Tanzania Petroleum Development Corporation ("TPDC") at
$3.24/MMBTU, which supplies Kinyerezi and Ubungo power generation
facilities as well as a limited number of industrial customers;
and
2. to Tanzania Electric Supply Company ("TANESCO") at
$5.36/MMBTU, which supplies the Mtwara power generation
facility.
As such, the Company is not impacted by fluctuations in global
commodity prices.
Financial Update
The Company continues to receive consistent monthly payments for
gas sales with receivables from TPDC standing at just one month. As
previously stated, the Company fully repaid its term loan on 31
January 2020. The Company's net cash balance at 31 January 2020,
following the final repayment of its term loan, was $14.2
million.
The Company's strong cash position and consistent payments
comfortably allow the Company to fully fund its dividend policy,
which, based on yesterday's closing share price of 17 pence,
equates to a 7.2% annual yield.
2020 Capital Programme
As previously stated, the Mnazi Bay JV Partners have agreed a
limited 2020 firm work programme totalling approximately $4.6
million net to Wentworth.
Operational Resilience
Noting the uncertainty arising from the recent coronavirus
outbreak, Wentworth has undergone an evaluation of its business
preparedness and believes it is well positioned to minimise
disruption given a limited requirement for stock at Mnazi Bay, IT
remote access for employees, and precautionary procedures
undertaken by the Tanzanian government.
Enquiries:
Wentworth Katherine Roe, katherine.roe@wentplc.com
Chief Executive Officer +44 (0)118 2065428
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
natural gas company with production, exploration and appraisal
opportunities for domestic power generation and local industry in
the Rovuma Delta Basin of coastal southern Tanzania.
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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