WENTWORTH RES
PRESS RELEASE
9 March 2015
WENTWORTH RESOURCES LIMITED
("Wentworth" or "the Company")
Tanzania Reserves Update
Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company, is pleased to announce the results of an independent evaluation of the gas reserves within the Mnazi Bay Concession in Tanzania, carried out by RPS Energy Canada Ltd. ("RPS"), Calgary, Canada.
This report marks a further significant shift in Wentworth's operational status, with independent reserves attributed to the Company's Mnazi Bay gas fields for the first time. Production in Tanzania is now imminent, as Wentworth has a gas sales agreement in place and the facilities required to produce these reserves are nearing completion.
HIGHLIGHTS:
- Wentworth's Proved + Probable (2P) reserves is valued at US$152.9 million after tax (NPV10)
- Proved (1P) - 89.2 Bscf gross (14.9 MMboe); 68.2 Bscf net (11.4 MMboe)
- Proved + Probable (2P) - 141.5 Bscf gross (23.6 MMboe); 95.5 Bscf net (15.9 MMboe)
- Proved, Probable & Possible (3P) - 226.6 Bscf gross (37.8 MMboe); 135.3 Bscf net (22.6 MMboe)
Geoff Bury, Managing Director, commented:
"We are very pleased that we now have reserves associated with our Mnazi Bay concession. This is a further step towards bringing our gas on stream and follows on the heels of the signing of our gas sales agreement (GSA) last year, and the ongoing implementation of the field infrastructure."
Mnazi Bay, Tanzania Reserves:
Certain key extracts from RPS' Reserves Assessment follow and the complete report is available on the Company's website at www.wentworthresources.com:
http://www.wentworthresources.com.
| Reserves Summary for Mnazi Bay as at December 31, 2014 | ||||||
| Reserve Category | Full Field | Wentworth 31.94% WI | ||||
| Gross Reserves | Gross(1) Reserves | Net(2) Reserves | ||||
| Sales Gas (Bscf) | BOE (MMbbl) | Sales Gas (Bscf) | BOE (MMbbl) | Sales Gas (Bscf) | BOE (MMbbl) | |
| PDP | 82.9 | 13.8 | 26.5 | 4.4 | 20.7 | 3.5 |
| 1P | 279.2 | 46.5 | 89.2 | 14.9 | 68.2 | 11.4 |
| 2P | 443.0 | 73.8 | 141.5 | 23.6 | 95.5 | 15.9 |
| 3P | 709.3 | 118.2 | 226.6 | 37.8 | 135.3 | 22.6 |
- Gross Reserves are Wentworth's working interest share of Total Field Reserves.
- Net Reserves are calculated as the product of Wentworth's Gross Reserves and the ratio of Wentworth's net revenue to Wentworth's working interest share of field gross revenue.
| Wentworth Resources Working Interest Reserves for Mnazi Bay as at December 31, 2014 | |||||
| Reserve Category | NPV Before Tax (Millions US$) using discount factor of | ||||
| 0% | 5% | 10% | 15% | 20% | |
| Proved | |||||
| Producing | 73.6 | 69.3 | 65.4 | 61.9 | 58.7 |
| Undeveloped | 102.3 | 77.8 | 59.5 | 45.5 | 34.8 |
| Total Proved | 175.8 | 147.1 | 124.8 | 107.4 | 93.5 |
| Probable | 66.4 | 48.7 | 37.5 | 30.3 | 25.4 |
| Proved + Probable | 242.2 | 195.8 | 162.4 | 137.7 | 118.9 |
| Possible | 120.1 | 65.6 | 36.9 | 21.1 | 12.1 |
| Proved + Probable + Possible | 362.3 | 261.3 | 199.2 | 158.8 | 131.0 |
| Wentworth Resources Working Interest Reserves for Mnazi Bay as at December 31, 2014 | |||||
| Reserve Category | NPV After Tax (Millions US$) using discount factor of | ||||
| 0% | 5% | 10% | 15% | 20% | |
| Proved | |||||
| Producing | 72.7 | 68.5 | 64.7 | 61.3 | 58.2 |
| Undeveloped | 93.5 | 71.1 | 54.2 | 41.4 | 31.4 |
| Total Proved | 166.2 | 139.6 | 118.9 | 102.7 | 89.6 |
| Probable | 60.1 | 44.1 | 33.9 | 27.3 | 22.9 |
| Proved + Probable | 226.3 | 183.7 | 152.9 | 130.0 | 112.5 |
| Possible | 110.2 | 60.3 | 33.9 | 19.3 | 11.0 |
| Proved + Probable + Possible | 336.5 | 244.0 | 186.8 | 149.3 | 123.5 |
There has been no change to Prospective Resources in the Company's Mnazi Bay Concession.
Partners in the Mnazi Bay Concession are:
Maurel et Prom: 60.075% (Operator) through exploration; 48.06% production
Wentworth: 39.925% through exploration; 31.94% production
TPDC: 20% production
Notes and Glossary
These assessments are made in accordance with the standard defined in the SPE/WPC Petroleum Resources Management System (2007) and the Canadian Oil and Gas Evaluation Handbook ("COGEH").
Gerold Fong, Vice President Exploration of the Company and an Exploration Geophysicist with over 31 years of international and frontier experience in many basins worldwide, has read and approved the technical disclosure in this regulatory announcement. Mr. Fong holds a B.sc. in Geophysics from the University of Calgary and is a member of the Association of Professional Engineers and Geoscientist of Alberta.
| Bscf | Billion standard cubic feet |
| BOE or boe | Barrels of oil equivalent |
| Contingent Resources | Quantities of petroleum estimated, as at a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies |
| GIIP | Gas Initially In Place |
| MMbbl | Million barrels |
| MMboe | Million barrels of oil equivalent |
| NPV | Net present value (at a specified discount rate and specified discount date) |
| PDP | Proved developed producing |
| Gross Reserves | Reserves volumes before deductions for royalty |
| Net Reserves | Reserves volumes after deduction of royalty |
| 1P | Proved Reserves, those quantities of petroleum, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods, and government regulations. |
| 2P | Proved + Probable Reserves, those additional Reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. It is equally likely that actual remaining quantities recovered will be greater than or less than the sum of the estimated Proved plus Probable Reserves |
| 3P | Proved + Probable + Possible Reserves, those additional reserves which analysis of geoscience and engineering data suggest are less likely to be recoverable than Probable Reserves. |
| Prospective Resources | Petroleum deposits that are estimated, on a given date, to be potentially recoverable from accumulations yet to be discovered |
| Reserves | Quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. |
| TPDC | Tanzania Petroleum Development Corporation |
| WI | Working interest attributable to Wentworth |
-Ends-
| Enquiries: | ||
| Wentworth | Geoffrey Bury, Managing Director | gpb@wentworthresources.com: mailto:gpb@wentworthresources.com +1 403 993 4450 |
| Lance Mierendorf, Chief Financial Officer Katherine Roe Head of Investor Relations & Corporate Communications | lance.mierendorf@wentworthresources.com: mailto:lance.mierendorf@wentworthresources.com +1 403 680 8773 katherine.roe@wentworthresources.com: mailto:katherine.roe@wentworthresources.com +44 7841 087 230 | |
| Swedbank First Securities | Broker(Norway) | +47 23 23 80 00 |
| Ove Gusevik | ||
| Jarand Lønne | ||
| Crux Kommunikasjon | Investor Relations Adviser (Norway) | +47 995 138 91 |
| Jan Petter Stiff | ||
| Carl Bachke | ||
| Panmure Gordon | AIM Nominated Adviser and Broker (UK) | +44 (0) 20 7886 2500 |
| Dominic Morley Adam James | ||
| FirstEnergy Capital | Broker (UK) | +44 (0) 20 7448 0200 |
| Travis Inlow | ||
| Investec | Broker (UK) | +44 (0) 20 7597 4000 |
| Chris Sim | ||
| Instinctif Partners | Investor Relations Adviser (UK) | +44 (0) 20 7457 2020 |
| Catherine Wickman | ||
| Harry Cameron | ||
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 northern Mozambique.
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 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, 2014, available on Wentworth's website, for further description of the risks and uncertainties associated with Wentworth's business.
Notice
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.
http://hugin.info/136496/R/1900289/675400.pdf
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Wentworth Resources Limited via Globenewswire
