Information  X 
Enter a valid email address

Wentworth Resources (WEN)

  Print   

Tuesday 02 February, 2021

Wentworth Resources

Operational Update and Reserves Update

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

Gross Reserves are Company Working Interest Share of Total Field Reserves

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
 

 

 

[email protected]
+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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
UPDUPUWWPUPGGAG

a d v e r t i s e m e n t