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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