2012-02-08 08:06:06 -
8 FEBRUARY 2012
WENTWORTH RESOURCES LIMITED
("Wentworth" or "the Company")
SALE OF MTWARA POWER PLANT TO TANZANIA ELECTRIC SUPPLY COMPANY
("TANESCO")
Wentworth is pleased to announce that its subsidiary, Wentworth Power Limited,
has reached an agreement to sell its 100 percent owned 18MW gas-fired power
plant and associated assets (located in Mtwara, Tanzania) to TANESCO for the
cash consideration of US$13.5 million. The sale will, upon completion, be
effective as of February 7, 2012, and is expected to close on or before March
9, 2012.
Reasons for & Benefits of the Sale:
1. Wentworth, an independent oil and gas company operating in the Rovuma Basin
of East Africa, is focused on its upstream oil and gas operations and
activities, and on developing large-scale gas monetisation projects, and
sees power generation as a non-core business;
2. Allows Wentworth to streamline its Tanzania operations and focus exclusively
on exploring for hydrocarbons and developing and producing its known natural
gas resources;
3. Provides Wentworth with non-dilutive capital for near term investment in
upstream operations and gas monetisation project development;
4. Wentworth and its Mnazi Bay Concession partners will continue to supply
natural gas to the Mtwara Power Plant;
5. TANESCO is Tanzania's electrical power utility and is well suited to manage,
develop and grow this business; and
6. TANESCO's mandate to own and expand electrical power generation fits well
with Wentworth's commitment to increase production and sales of Mnazi Bay
natural gas.
Mtwara Power Plant Key Financial Facts:
+--------------------+-------------------+------------------+------------------+
| | 2011 | 2010 | 2009 |
|(US$000's) |(nine months ended | (year ended | (year ended |
| | September 30) | December 31) | December 31) |
+--------------------+-------------------+------------------+------------------+
|Revenue | 5,204 | 4,861 | 3,415 |
+--------------------+-------------------+------------------+------------------+
|Profit (loss) | 206 | (404) | (1,076) |
+--------------------+-------------------+------------------+------------------+
|Assets (net book| 9,426 | 10,278 | 8,236 |
|value) | | | |
+--------------------+-------------------+------------------+------------------+
Managing Director, Geoff Bury, commented:
"We believe the sale and purchase of the power plant is beneficial to both
parties and we want to thank TANESCO and the government of Tanzania for their
commitment and professionalism throughout the transaction process. This
transaction provides us with further non-dilutive capital as we look to focus on
our core strategy of exploring for hydrocarbons and developing known natural gas
resources. We look forward to continuing to be a reliable, long-term gas
supplier to the Mtwara Power Plant and to being a gas supply partner with
TANESCO in other parts of Tanzania".
END
Enquiries:
Wentworth Bob McBean, Executive Chairman
rpm@wentworthresources.com
Eric Fore, Finance, Investor &
etf@wentworthresources.com
Public Relations Manager
Panmure Gordon Nominated adviser & broker +44 (0) 20 7459 3600
Katherine Roe
Brett Jacobs
FirstEnergy Broker +44 (0) 20 7448 0200
Capital
Majid Shafiq
Travis Inlow
College Hill Investment relations adviser +44 (0) 20 7457 2020
Nick Elwes
Catherine Maitland
Alexandra Roper
Axxept Investment relations adviser +47 (0) 99 22 0200
Per Arne Totland
About Wentworth Resources
Wentworth Resources is a publicly traded (AIM:WRL, OSE:WRL), independent oil &
gas company with: natural gas production; midstream assets; a committed
exploration and appraisal drilling programme; and large-scale gas monetisation
project opportunities, all in the Rovuma Delta Basin of coastal southern
Tanzania and northern Mozambique.
About Mtwara Power Plant
The Mtwara Power Plant is an 18MW gas-to-power generation facility located in
Mtwara, Tanzania. The plant sells electricity to TANESCO in the Mtwara and Lindi
regions of Southern Tanzania. It is supplied by natural gas produced, processed
and pipelined from the Mnazi Bay Concession area.
FORWARD LOOKING STATEMENTS
This press release may contain certain forward-looking information. The words
"expect", "anticipate", "believe", "estimate",
"may", "will", "should",
"intend", "forecast", "plan", and similar expressions are
used to identify
forward looking information.
The forward-looking statements contained in this press release are based on
management's beliefs, estimates and opinions on the date the statements are made
in light of management's experience, current conditions and expected future
development in the areas in which Wentworth is currently active and other
factors management believes are appropriate in the circumstances. Wentworth
undertakes no obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information, future events
or otherwise, unless required by applicable law.
Readers are cautioned not to place undue reliance on forward-looking
information. By their nature, forward-looking statements are subject to numerous
assumptions, risks and uncertainties that contribute to the possibility that the
predicted outcome will not occur, including some of which are beyond Wentworth's
control. These assumptions and risks include, but are not limited to: the risks
associated with the oil and gas industry in general such as operational risks in
exploration, development and production, delays or changes in plans with respect
to exploration or development projects or capital expenditures, the imprecision
of resource and reserve estimates, assumptions regarding the timing and costs
relating to production and development as well as the availability and price of
labour and equipment, volatility of and assumptions regarding commodity prices
and exchange rates, marketing and transportation risks, environmental risks,
competition, the ability to access sufficient capital from internal and external
sources and changes in applicable law. Additionally, there are economic,
political, social and other risks inherent in carrying on business in Tanzania
and Mozambique. There can be no assurance that forward-looking statements will
prove to be accurate as actual results and future events could vary or differ
materially from those anticipated in such statements. See Wentworth's
Management's Discussion and Analysis for the year ended December 31, 2010,
available on Wentworth's website, for further description of the risks and
uncertainties associated with Wentworth's business.
NOTICE
Neither the Oslo Bors Exchange nor the AIM Market of the London Stock Exchange
has reviewed this press release and neither accepts responsibility for the
adequacy or accuracy of this press release.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Press Release 2012 02 08:
hugin.info/136496/R/1583526/495136.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Wentworth Resources Limited via Thomson Reuters ONE
[HUG#1583526]
