TIDMWEN
RNS Number : 5079B
Wentworth Resources PLC
14 February 2022
14 February 2022
WENTWORTH RESOURCES PLC
("Wentworth" or the "Company")
2021 Reserves Report Underpins Long-Term Potential at Mnazi
Bay
Wentworth Resources plc (AIM: WEN), the independent,
Tanzania-focused natural gas production company, announces the
results of the year-end Competent Persons Report for 2021.
Highlights
-- Wentworth's share of gross 2P Reserves as at 31 December 2021
estimated to be 135.2 Bcf (22.5 MMboe) with an after-tax NPV10 of
US$108.1 million
-- Gross full-year 2021 production was 29.8 Bcf representing an
approximate 24% increase over 2020 gross production volumes
-- Remaining economically recoverable gross 2P sales gas for the
Mnazi Bay Gas field estimated at 423.3 Bcf
-- Cumulative Mnazi Bay Field production to the end of 2021 is 154.4 Bcf
-- Mnazi Bay Facility safely operated for over 2,000 days (or
5.5 years) without a lost time incident
-- Employee safety remains a top priority and robust
precautionary measures remain in place relating to COVID-19
Reserves Update
RPS Energy Canada Ltd ("RPS"), an independent third-party
reserves evaluator, completed a Competent Persons Report ("CPR")
for the Company's interest in the Mnazi Bay licence with an
effective date of 31 December 2021. The updated full field 2P gross
reserves for the Mnazi Bay gas field are 423.3 Bcf (83.6 Bcf being
Wentworth's share of net reserves). This compares to 445.3 Bcf as
at 31 December 2020 reflecting a year of strong production.
Full-year 2021 gross production increased 24% to 29.8 Bcf (FY 2020:
23.9 Bcf).
The after-tax NPV10 for the 2P reserves as at 31 December 2021
is US$108.1 million net to Wentworth.
During 2021, Wentworth returned US$3.9 million to shareholders,
made further capital returns via share buy-backs of US$2.0 million
and increased its cash position (unaudited) to US$22.8 million as
at 31 December 2021 (2020: US$17.8 million).
Reserves Summary
as at December 31, 2021
-----------------------------------------------------------------------------------------------------------
Mnazi Bay Field Wentworth 31.94% WI
----------------------------- ----------------------------------------------------------
Gross(1) Reserves Gross(1) Reserves Net(2) Reserves
----------------------------- --------------------------- -----------------------------
Sales Sales Sales
Gas BOE Gas BOE Gas BOE
Reserves
Category (Bscf) (MMbbl) (Bscf) (MMbbl) (Bscf) (MMbbl)
---------------- -------------- ------------- ------------- ------------ ----------------- ----------
PDP 81.9 13.6 26.1 4.4 23.0 3.8
PD 81.9 13.6 26.1 4.4 23.0 3.8
1P 221.7 37.0 70.8 11.8 46.9 7.8
2P 423.3 70.5 135.2 22.5 83.6 13.9
3P 671.9 112.0 214.6 35.8 126.7 21.1
(1) Gross Reserves are Company Working Interest Share of Total
Field Reserves
(2) Net Reserves are calculated as the product of Company Gross
Reserves and the ratio of
Company net revenue to Company WI share of field gross revenue
Wentworth Resources Working Interest Reserves for Mnazi
Bay
as at December 31, 2021
Contracted Price Forecast 2022-01-01
NPV After Tax
Reserve Category Million US$
----------------------------------------------- ---------------------------------------------------------------
0% 5% 10% 15% 20%
----------- ---------- --------------- ----------
PROVED
Producing 45.0 41.2 37.9 35.0 32.5
Non Producing - - - - -
Undeveloped 60.2 47.7 38.8 32.2 27.2
TOTAL PROVED 105.2 88.9 76.6 67.2 59.7
Probable 74.5 46.9 31.4 22.3 16.7
PROVED + PROBABLE 197.7 135.8 108.1 89.5 76.4
Possible 100.4 61.7 42.6 32.1 25.8
PROVED + PROBABLE + POSSIBLE 280.2 197.5 150.6 121.6 102.2
The full CPR is available on the Company's website: www.wentplc.com/investors/documents .
Katherine Roe, CEO, commented:
"Our 2021 CPR reconfirms the long-term potential at Mnazi Bay,
which continues to go from strength-to-strength having produced
impressive volumes last year. The upwards revision in PDP reserves,
after accounting for production, reflects our strong technical
fundamentals as well as the hard work and ongoing investment of the
Mnazi Bay JV partners.
"Our robust operations and reserves potential will enable us to
continue supplying the people of Tanzania with a low-carbon,
sustainable energy supply while returning capital to shareholders
through our progressive dividend policy for the long-term."
- Ends -
Enquiries: Katherine Roe, katherine.roe@wentplc.com
Wentworth Resources Chief Executive Officer +44 (0) 7841 087 230
AIM Nominated Advisor 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
NOTES
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.
RESERVE DEFINITIONS
The following definitions have been used by RPS Energy Canada
Ltd. (RPS) in evaluating reserves.
These definitions are based on the Petroleum Resources Management
System, published in 2007, and revised in June 2018, and sponsored
by the Society of Petroleum Engineers (SPE), World Petroleum
Council (WPC), American Association of Petroleum Geologists
(AAPG), Society of Petroleum Evaluation Engineers (SPEE),
Society of Exploration Geophysicists (SEG), Society of Petrophysicists
and Well Log Analysts (SPWLA), and the European Association
of Geoscientists & Engineers (EAGE).
Reserves
Reserves are those quantities of petroleum anticipated to
be commercially recoverable by application of development
projects to known accumulations from a given date forward
under defined conditions. Reserves must satisfy four criteria:
discovered, recoverable, commercial, and remaining (as of
the evaluation's effective date) based on the development
project(s) applied.
Reserves are classified according to a range of uncertainty
according to the following categories:
Proved Reserves (P1)
Proved Reserves are those quantities of Petroleum that, by
analysis of geoscience and engineering
data, can be estimated with reasonable certainty to be commercially
recoverable from known reservoirs and under defined technical
and commercial conditions. If deterministic methods are used,
the term "reasonable certainty" is intended to express a high
degree of confidence that the quantities will be recovered.
If probabilistic methods are used, there should be at least
a 90% probability that the quantities actually recovered will
equal or exceed the estimate.
Probable Reserves (P2)
Probable Reserves are 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 (2P). In this context, when probabilistic methods
are used, there should be at least a 50% probability that
the actual quantities recovered will equal or exceed the 2P
estimate.
Possible Reserves (P3)
Possible Reserves are those additional Reserves that analysis
of geoscience and engineering data suggest are less likely
to be recoverable than Probable Reserves. The total quantities
ultimately recovered from the project have a low probability
to exceed the sum of Proved plus Probable plus Possible (3P)
Reserves, which is equivalent to the high-estimate scenario.
When probabilistic methods are used, there should be at least
a 10% probability that the actual quantities recovered will
equal or exceed the 3P estimate. Possible Reserves that are
located outside of the 2P area (not upside quantities to the
2P scenario) may exist only when the commercial and technical
maturity criteria have been met (that incorporate the Possible
development scope). Standalone Possible Reserves must reference
a commercial 2P project (e.g., a lease adjacent to the commercial
project that may be owned by a separate entity), otherwise
stand-alone Possible is not permitted.
Reserves in each of the above three categories are subdivided
according to their development and
producing status according to the following:
Developed Reserves
Developed Reserves are reserves that are expected to be recovered
from existing wells and facilities. Developed Reserves may
be further sub-classified as Producing or Non-Producing.
Developed Producing Reserves are Developed Reserves that
are expected to be recovered from completion intervals that
are open and producing at the effective date. Improved recovery
reserves are considered producing only after the improved
recovery project is in operation.
Developed Non-Producing Reserves are Developed Reserves that
are either shut-in or behind pipe.
Undeveloped Reserves are those quantities expected to be
recovered through future investments: (1) from new wells on
undrilled acreage in known accumulations, (2) from deepening
existing wells to a different (but known) reservoir, (3) from
infill wells that will increase recovery, or (4) where a relatively
large expenditure (e.g., when compared to the cost of drilling
and completing a new well) is required to recomplete an existing
well.
Glossary
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)
-----------------------------------------------
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.
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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END
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