REG - Wentworth Resources - Operational Update and Reserves Update

Wentworth ResourcesAnnouncement

02/02/2021 07:01

RNS Number : 6072N
  
Wentworth Resources PLC
  
02 February 2021
  
 

PRESS RELEASE                                                                                                                         2 February 2021
WENTWORTH RESOURCES PLC

("Wentworth" or the "Company")
Operational Update and Reserves Update
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.




Reserves Summary for Mnazi Bay




as at December 31, 2020




 


Field


Wentworth 31.94% WI




 


Gross (1) Reserves


Gross (1) Reserves


Net (2) Reserves




Reserves Category


Sales Gas


BOE (MMbbl)


Sales Gas (Bscf)


BOE (MMbbl)


Sales Gas


BOE




(Bscf)


(Bscf)


(MMbbl)




Proved Developed Producing (PDP)


90.4


15.1


28.9


4.8


24.9


4.1




Proved Developed


100.8


16.8


32.2


5.4


27.8


4.6




Total Proved Developed (PD)


191.2


31.9


61.1


10.2


52.7


8.7




Proved Undeveloped


48.8


8.1


15.6


2.6


2.6


0.5




Total Proved (1P)


240.0


40.0


76.7


12.8


55.3


9.2




Proved + Probable (2P)


445.3


74.2


142.2


23.7


90.8


15.1




Proved + Probable + Possible (3P)


637.8


106.3


203.7


34.0


233.5


20.6




⁽¹⁾ Gross Reserves are Company Working Interest Share of Total Field Reserves




⁽²⁾ Net Reserves are calculated as the product of Company Gross Reserves and the ratio of Company net revenue to Company WI share of field gross revenue




 
 




Wentworth Resources Working Interest Reserves for Mnazi Bay




as at December 31, 2020




RPS Forecast 2021-01-01




 


NPV Before Tax


NPV After Tax




Reserves Category


Million US$


Million US$




 


0%


5%


10%


15%


20%


0%


5%


10%


15%


20%




 


 


 


 


 


 


 


 


 


 


 




PROVED


 


 


 


 


 


 


 


 


 


 




Producing


50.1


46.3


42.8


39.7


36.9


45.8


42.6


39.5


36.7


34.2




Non Producing


9.6


8.8


8.1


7.5


7.0


8.9


8.1


7.5


7.0


6.5




Undeveloped


70.9


54.1


42.1


33.4


26.9


56.9


42.0


31.4


23.8


18.2




Total Proved


121.0


100.4


85.0


73.1


63.8


111.6


92.7


78.4


67.5


58.9




Probable


83.4


56.7


41.4


32.5


27.1


75.9


51.9


38.1


30.0


25.1




 


 


 


 


 


 


 


 


 


 


 




PROVED + PROBABLE


204.4


157.1


126.4


105.6


90.9


187.4


144.5


116.6


97.5


84.0




 


 


 


 


 


 


 


 


 


 


 




Possible


74.4


52.3


39.6


32.1


27.4


67.8


47.8


36.4


29.5


25.1




 


 


 


 


 


 


 


 


 


 


 




PROVED + PROBABLE + POSSIBLE


278.8


209.3


166.1


137.7


118.2


255.2


192.4


152.9


127.0


109.2




 
The full CPR is available on the Company's website:  www.wentplc.com/investors/documents. 
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."
 
-  Ends -
 




Enquiries: 


Wentworth


 
 
Katherine Roe,

Chief Executive Officer

 


 
 
katherine.roe@wentplc.com

+44 (0) 7841 087 230

 




 

Stifel Nicolaus Europe Ltd


 

AIM Nominated Adviser & Joint Broker 

Callum Stewart

Ashton Clanfield

Simon Mensley


 

+44 (0) 20 7710 7600




 



Peel Hunt LLP


 



Joint Broker 

Richard Crichton

Alexander Allen


 



+44 (0) 20 7418 8900




 



FTI


 



Communications Adviser 

Sara Powell                               
Ben Brewerton


 



+44 (0) 20 3727 1000




 


 


 




Notes and Glossary
These assessments are made in accordance with the standards defined in the Petroleum Resources Management System (Revised 2018) sponsored by SPE, WPC, AAPG, SPEE, SEG, SPWLA, and EAGE.
Cameron Snow, Head of Subsurface and Business Development, is a geologist with 15 years' experience across North America, South America, Africa, and Europe.  He holds a BS in Geology from North Carolina State University, an MS in Geology from Utah State University, a PhD in Geological and Environmental Science from Stanford University, and an MBA from Imperial College London. Mr. Snow has read and approved the technical disclosure in this regulatory announcement. 




Bcf/Bscf


Billion standard cubic feet




BOE


Barrels of oil equivalent




MMbbl


Million barrels




MMboe


Million barrels of oil equivalent




NPV


Net present value (at a specified discount rate and specified discount date)




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.




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.




 
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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