Wentworth Resources PLC Operational Update and 2022 Production Guidance (6259Z)
26 Janvier 2022 - 8:00AM
UK Regulatory
TIDMWEN
RNS Number : 6259Z
Wentworth Resources PLC
26 January 2022
26 January 2022
WENTWORTH RESOURCES PLC
("Wentworth" or the "Company")
Operational Update and 2022 Production Guidance
Wentworth achieves highest ever quarterly production and raises
production guidance for 2022
Wentworth Resources plc (AIM: WEN), the independent,
Tanzania-focused natural gas production company, is pleased to
announce an operational update and its production guidance for
2022.
Wentworth (holding 31.94%) and its joint venture partners
achieved record quarterly production of 91.5 MMScf/d from the Mnazi
Bay gas field in the fourth quarter of 2021. This supported the
steadily increasing demand for natural gas in Tanzania, which
remained strong throughout the second half of last year.
Positive economic indicators continue to support natural gas
demand and comparatively lower hydroelectric generation has further
increased Tanzania's reliance on natural gas for baseload
electricity. This has enabled Wentworth to set production guidance
for 2022 at 75 - 85 MMScf/d. This is significantly higher than
initial guidance for 2021 and reflects the Company's confidence in
Tanzania's demand fundamentals and Mnazi Bay's ability to fulfil
demand at these levels.
The Company is proud of its continuing role, through its
partnership in the Mnazi Bay Joint Venture, to provide low-carbon
natural gas, a safe and reliable source of energy for the people
and industries of Tanzania.
2021 Operational Highlights
-- The health and safety of our employees remains our top priority
and robust precautionary measures remain in place to ensure
the ongoing safety of our staff
-- Daily average gross production in 2021 was 24% higher year-on-year
at 81.6 MMscf/d (2020: 65.5 MMscf/d)
-- Daily average production was higher than guidance for 2021,
which was set at 65 - 75 MMscf/d and later revised upwards
in June 2021 to 70 - 80 MMscf/d
-- Daily average production from the Mnazi Bay field in Q4
2021 was 20% higher year-on-year at 91.5 MMscf/d (Q4 2020:
76.4 MMscf/d), the strongest quarterly performance in the
Company's history
2022 Outlook
-- Production guidance for 2022 has been set at 75 - 85 MMscf/d,
raising the guidance band by 5 MMScf/d across the board
-- The contracted price for gas produced at Mnazi Bay production
has increased from $3.35/MMbtu to $3.44/MMbtu in line with
growth in the United States Consumer Prices Index ("CPI");
effective from 1 January 2022
-- Operational costs of production remain low at $0.54/Mscf
-- The Company continues to explore and evaluate growth opportunities
both within the Mnazi Bay licence and the greater geographical
region to support increasing in-country demand for natural
gas
Financial
-- Total capital returns to shareholders of $5.9 million in
2021
-- 2021 interim dividend of $1.32 million declared in August
2021, an increase of 10% from 2020, raising total distributions
to shareholders to $3.9 million during 2021
-- Further capital returns via share buy-backs of $2.0 million
(GBP1.5 million) in December 2021
-- Wentworth expects a 2021 final dividend of US$2.64 million
in line with the Company's policy of a 1/3 : 2/3 split
between the interim and the final dividend
-- Wentworth remains debt free with $22.8 million cash on
hand at 31 December 2021 (unaudited) following 2021 share
buy back programme
-- 2022 proposed Mnazi Bay work programme and budget totalling
$20.1 million (gross joint venture), comprising $12.8 million
field operating costs ($4.3 million net to Wentworth) and
$7.3 million field development costs ($2.3 million net
to Wentworth)
-- Strong working partnership with Tanzania Petroleum Development
Corporation ("TPDC") which continues to settle all gas
sales invoices in full as they fall due and remains fully
current with payments
Sustainability
-- In line with its strategic focus on climate action and
its commitment to maintaining a robust ESG framework, Wentworth
expects to publish its 2021 Sustainability Report in April
2022
-- As announced in November 2021, Wentworth aims to offset
all Mnazi Bay Scope 1 and Scope 2 emissions and partially
offset Scope 3 emissions from 2022 by working in partnership
with Vitol SA to develop new community-focused carbon credit
programmes in Tanzania
Katherine Roe, CEO, commented:
"Wentworth continues to go from strength to strength and we are
proud and delighted to have achieved an all-time quarterly
production record at Mnazi Bay in the final quarter of last year.
This continues to indicate that demand has recovered from the lower
levels of 2020 associated with COVID-19 and means Wentworth will
continue to have a leading role in providing low-carbon energy as
Tanzania rapidly grows and industrialises.
"Our strong balance sheet means that 2022 presents an
opportunity to optimise and expand our operations at Mnazi Bay to
continue to grow production over time. We are looking forward to
working with our partners, TPDC and Maurel et Prom, on this work
programme to ensure the long-term sustainability of our
operations.
"Financially we are in the strongest position in our corporate
history enabling our commitment to sustaining our progressive
dividend policy as well as instituting a share buy-back programme
at the end of 2021. We remain debt-free with significant cash on
hand and continue to evaluate growth opportunities to underpin our
capital returns policy for the long-term.
"As Wentworth's contributions to Tanzania grow, we remain
focused on ensuring that we are a responsible, transparent, and
sustainable business. Part of that approach includes taking
accountability for the emissions impacts of our business. We come
from a strong starting position with one of the lowest carbon
intensity figures in the UK-listed E&P sector. However, we know
that isn't enough. In partnership with Vitol, work is already
underway on our community-focused carbon credit programme and we
look forward to providing updates on our progress over the coming
months as we identify opportunities to deliver tangible impacts to
our communities across Tanzania."
Ends
Enquiries: Katherine Roe, katherine.roe@wentplc.com
Wentworth Resources Chief Executive Officer +44 (0) 7841 087 230
AIM Nominated Adviser and
Joint Broker
Callum Stewart
Stifel Nicolaus Europe Ashton Clanfield
Limited Simon Mensley +44 (0) 20 7710 7600
Joint Broker
Richard Crichton
Peel Hunt LLP Alexander Allen +44 (0) 20 7418 8900
Communications Advisor
Sara Powell
FTI Consulting Ben Brewerton +44 (0) 20 3727 1000
About Wentworth Resources
Wentworth Resources plc (AIM: 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.
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Market Abuse Regulation (EU) no. 596/2014 ("MAR"). On the
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