Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company, is providing an update to shareholders.
We are pleased to announce that demand for the Company's discovered gas reserves from Mnazi Bay, Tanzania is firming up with current gross volumes being maintained within the previously guided range of 40 - 50 MMscf/d and first quarter production averaging 43 MMscf/d. As expected, Tanzania Petroleum Development Corporation ("TPDC") commenced gas delivery to a new industrial customer, Goodwill Tile Factory in the first quarter demonstrating demand growth from the industrial sector which is expected to increase throughout 2017 as Dangote Cement begins using gas for power generation. We will continue to update the market as these new sources of demand materialize. So far in 2017, TPDC has settled in full the November 2016 and December 2016 invoices that were outstanding at the year end, and has also settled a 2015 invoice for line fill gas volumes. In addition, we have received payment from Tanesco for five months of outstanding invoices. Combined cash receipts totalling $4.9m, net to Wentworth, have been primarily used to settle outstanding amounts that were due to the Operator, Maurel et Prom. As part of our Gas Sales Agreement with TPDC, payment guarantees are in place which can be utilized, if determined necessary, should payments from TPDC be excessively delayed.
In relation to Wentworth's appraisal activities in northern Mozambique, the Company is pleased to report that the reprocessing of approximately 1,000 km of existing seismic data is complete, interpretation is being finalized and results from the Tembo-1 discovery well have been fully analyzed. The Company is now working on advancing a farm-out process with a view to securing an industry partner to jointly drill an appraisal well in 2018. We will update the market as material developments on this asset occur.
The latest version of our Corporate Presentation can be found on our website at www.wentworthresources.com.
Geoff Bury, Managing Director, commented:
"We are pleased to see gas demand stabilizing in Tanzania and that Mnazi Bay gas is now being delivered to a new industrial customer, with more customers expected to follow. Together with our development partners, the Company is also currently developing and pursuing opportunities to increase the current demand for the Mnazi Bay gas. In Mozambique, the completion of the reprocessing of the seismic and interpretation of the results confirms our belief in the potential of the Tembo gas discovery and we are very excited about being able to advance this world class discovery through securing an industry partner."