Wentworth Resources plc (AIM: WEN), the independent, Tanzania-focused natural gas production company, announces the following operational update and results of the year-end Competent Persons Report for 2020.
Highlights
To date, there have been zero reported cases of COVID-19 at Mnazi Bay. Employee safety remains a top priority and robust precautionary measures remain in place
Wentworth's share of gross 2P Reserves as at 31 December 2020 estimated by RPS Group to be 142.2 Bcf (23.7 mmboe) with a post-tax NPV10 of $116.6 million
Debt free with $17.8 million cash on hand as at 31 December 2020 (unaudited)
Production guidance for full-year 2021 set at 65-75 MMscf/day (gross)
Mnazi Bay Operations and Operational Outlook
Repairs to the MB-2 flowline were completed on time on 9 December 2020 and the well has continued to perform in line with expectations
A planned slickline campaign commenced on 22 January 2021 which primarily includes a continuation of the Mnazi Bay Partners' ongoing pressure monitoring programmes
Reserves Update
RPS Group, an independent third-party reserves evaluator, performed a Competent Persons Report ('CPR') for the Company with an effective date of 31 December 2020. The updated full field 2P gross reserves for Mnazi Bay are 445.3 Bcf (90.8 Bcf being Wentworth's share of net reserves). This compares to 468.9 Bcf as at 31 December 2019. As full-year 2020 gross production totaled 23.9 Bcf (gross), this demonstrates a minimal change attributable to technical and economic factors to previous reserves estimates.
The NPV10 after tax for the 2P reserves as at 31 December 2020 is $116.6 million net to Wentworth. This compares to $118.6 million for 2019. It should be noted that during 2020, Wentworth increased its cash position to $17.8 million (unaudited), while distributing $3.2 million in dividends, compared to cash of $13.5 million as at 31 December 2019.
Katherine Roe, CEO, commented: 'The results of our 2020 Competent Persons Report show the continued strong technical fundamentals underlying the Mnazi Bay field and its potential to generate strong, long-term free cash flows that form the basis of our sustainable dividend policy. We look forward to continuing to use our fiscal discipline and financial performance to create further value for shareholders.'
Contact:
Katherine Roe
Tel: +44 (0) 7841 087 230
Email: katherine.roe@wentplc.com
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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