TIDMWEN
RNS Number : 6233L
Wentworth Resources PLC
14 January 2021
PRESS RELEASE 14 January 2021
WENTWORTH RESOURCES PLC
("Wentworth" or the "Company")
Operational Update and 2021 Production Guidance
Wentworth Resources plc (AIM: WEN), the independent,
Tanzania-focused natural gas production company, is pleased to
announce the following operational update and provide production
guidance for 2021.
Operational
-- The health and safety of our employees remains a top priority
and robust precautionary measures remain in place to ensure the
continued safety of our staff; to date, there have been zero
reported cases of COVID-19 at Mnazi Bay
-- Mnazi Bay continues to remain fully operational with no
material adverse impact on supply from the pandemic
-- 2020 full year production averaged 65.36 MMscf/day (gross),
within the annual production guidance range of 60-70 MMscf/day
(gross)
-- Repairs to the MB-2 flowline were completed on 9 December
2020, increasing the capacity of the field to over 100MMscf/day
-- December 2020 production averaged 82.93 MMscf/day (gross),
with five days reaching 103 MMscf/day (gross), and a record high of
103.36 MMscf/day achieved on 15 December 2020; demonstrating both
the capabilities of the field and the potential for natural gas
demand to dramatically increase during the hot, dry season
-- Production guidance for full year 2021 has been set at 65-75 MMscf/day (gross)
Financial
-- Interim dividend of $1.2 million paid in October 2020, an
increase of 20% from the Company's maiden interim distribution of
$1.0 million in 2019
-- Total dividend distributions paid to shareholders during the
2020 calendar year increased to $3.2 million
-- Debt free with $17.8 million cash on hand at 31 December 2020 (unaudited)
-- The JV Partners have agreed a 2021 firm work programme
totalling approximately $4.4 million net to Wentworth
-- Strengthening of working partnership with Tanzania Petroleum
Development Corporation ("TPDC") which continues to settle all gas
sales invoices in full as they fall due and remains fully current
with payments
-- Discussions with Tanzania Electric Supply Company ("TANESCO")
are on-going to settle all remaining arrears, which currently stand
at 15 months totalling approximately $1.3 million net to
Wentworth
Sustainable Growth
Sustainable and responsible growth in Tanzania that protects
long-term shareholder returns remains a priority for the business.
2020 was a very active period for the Company with a number of
discussions initiated to support our growth ambitions and these
remain on-going with key stakeholders in Tanzania.
Our commitment to further growth in Tanzania is underpinned by
our long track record in-country and the increasing requirement for
a reliable, affordable and low-carbon energy supply. Wentworth's
robust gas-to-power production platform is well-positioned to
service this future demand growth, working hand-in-hand with low
carbon technologies, such as hydropower.
During 2020, the Company undertook a strategic review of its ESG
priorities and reporting and looks forward to publishing its
inaugural Sustainability Report this year.
Sustainable Dividend Policy
Since the commencement of Wentworth's dividend policy in
September 2019, the Company has made distributions totalling $4.2
million to shareholders. The Company will declare its final
dividend for year ended 2020 along with the Company's Final Results
expected in April 2021.
Katherine Roe, CEO, commented:
"We are pleased to announce that Mnazi Bay has remained fully
operational since the start of the pandemic. Despite strong
hydropower generation from a heavy rainy season during the first
half of 2020 and a slowdown in industrial demand in Q2 2020 due to
COVID-related restrictions, we saw this trend reverse swiftly
following the lifting of those restrictions. In the second half of
2020, we saw demand increasing to levels that ensured we
comfortably met our production guidance, with 2020 full year
volumes of 65.36 MMscf/day, the middle of our guidance range of
60-70 MMscf/day (gross).
"The record volumes we enjoyed in December demonstrates the
tangible increase in demand during the hot, dry season which,
alongside the increasing industrialisation of Tanzania's economy,
provides a robust outlook for 2021 with production guidance set at
65-75MMscf/day (gross). This guidance reflects both historical
demand profiles, Wentworth's evolving understanding of the demand
landscape, and the developing process of production allocation
between suppliers. Reaching this target will be further supported
through recent repairs to the MB-2 flowline during December, which
has increased the capacity of the field to over 100MMscf/day.
"We continue to align our commitment to delivering a positive
impact for Tanzania whilst delivering long-term, sustainable
returns for our shareholders - we strongly believe these two
commitments must go hand-in-hand. For our shareholders, we're proud
to have paid $3.2 million of dividend distributions during the 2020
calendar year and remain committed to an ongoing sustainable
dividend policy going forward.
"The future demand outlook underpins our strategy for ambitious
growth in Tanzania to transform the country by increasing
low-carbon energy access to meet the universal access target set
for 2030 set by the Government of Tanzania and aligned with the
UN's Sustainable Development Goals."
- Ends -
Enquiries: Katherine Roe, katherine.roe@wentplc.com
Chief Executive Officer +44 (0) 7841 087 230
Wentworth
AIM Nominated Adviser and Joint
Broker
Callum Stewart
Stifel Nicolaus Europe Ashton Clanfield
Limited Simon Mensley +44 (0) 20 7710 7600
Joint Broker
Richard Crichton
Peel Hunt LLP Alexander Allen +44 (0) 20 7418 8900
Communications Adviser
Sara Powell
FTI Ben Brewerton +44 (0) 20 3727 1000
About Wentworth Resources
Wentworth Resources plc (AIM-listed: WEN) is a leading, domestic
natural gas producer in Tanzania with a core producing asset at
Mnazi Bay in the onshore Rovuma Basin in Southern Tanzania.
The power demand base in-country is growing and with an
ambitious universal energy access target set by the Government for
2030, Wentworth has a vital role to play in increasing access by
ensuring a reliable, affordable and growing supply of natural gas
into the local market.
In 2019, Wentworth launched its dividend policy and remains
committed to responsible growth that maintains returns for
shareholders.
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.
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END
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