Tanzania: Wentworth Resources – Operational and Corporate Update
Monday, March 20, 2023
Independent firm Wentworth Resources, the Tanzania-focused natural gas production company, provided an operational and corporate update.
Operational Highlights and Outlook
- As of 12 March 2023, the Mnazi Bay operation has reported zero lost time incidents for a period of 2,413 days (six years and 222 days)
- In 2022, the Mnazi Bay gas field attained record production levels, reaching an average gross daily rate of 90 MMscf/d, the highest annualised average daily production rate in the licence’s history
- Current year-to-date daily average production is c.95.0 MMscf/day (gross), compared with 98.1 MMscf/day (gross) for the same period in 2022
- Q1 2023 average daily production is projected to reach approximately 98.0 MMscf/day (Q1 2022: 98.5 MMscf/d)
- Production guidance for 2023 is in the range of 85-95 MMscf/d, to take account of conditions at the Madimba gas facility and national rainfall levels which affect hydroelectric generation
- Based on the recent perforation programme, there are indications of additional gas production volumes; the results will be reported upon testing completion and analysis of the results
- The Mnazi Bay Joint Venture Partners have identified a number of leads on the Mnazi Bay licence and are evaluating the prospects as potential drilling targets
- The Company anticipates ongoing growth and development in the Tanzanian market supported by Mnazi Bay gas production
Financial
- Debt-free with cash on hand of $32.3 million
- TPDC receivable of $4.9 million representing two months of gas sales
- Tanzania Electric Supply Company (TANESCO) receivable of $764k representing five months of gas sales
Corporate
- On 5 December 2022, the boards of Wentworth and M&P announced that they had reached an agreement on the terms of a recommended all-cash offer by M&P for the entire issued, and to be issued, share capital of Wentworth (the “Acquisition”)
- On 23 February 2023, the Company announced that shareholders had approved the Acquisition at the Court Meeting and the General Meeting held on that date
- The Acquisition remains subject to the satisfaction or waiver of the other Conditions to the Acquisition as set out in Part III of the scheme document posted to shareholders in connection with the Acquisition on 25 January 2023 (the “Scheme Document”) and the Company expects completion in Q2 or Q3 2023.
Sustainability
- An effective ESG strategy remains a top priority for Wentworth. In 2022, the Company progressed its disclosure against some of its most material topics; detail will be included in the 2022 Sustainability Report
- As announced previously, Wentworth is in discussion with Vitol to develop a carbon offsetting project in Tanzania involving the distribution of clean stoves and water filters. Following the issuance of regulation in late 2022 to manage and control carbon trading in Tanzania, consultation with the Department for Environment and Climate Change is underway to establish the project
Katherine Roe, CEO, commented: “I am pleased to report that we continue to deliver strong production following a record year in 2022, ensuring a sustained, dependable supply of natural gas which supports growth in Tanzania. I am also especially proud of our distinguished safety record – a metric of paramount importance for the Company.
“I want to thank the entire Wentworth team for their work which has created significant value for shareholders over recent years. Particularly, as we work towards realizing this value in the near term through the completion of Wentworth’s acquisition by M&P, the operator and majority owner of our sole asset, Mnazi Bay. We believe this logical combination is in the best interests of our shareholders, wider stakeholders and of Tanzania.
“We continue to work with our in-country stakeholders to assist M&P in achieving the required regulatory approvals.”
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