8 FEBRUARY 2012
WENTWORTH RESOURCES LIMITED
("Wentworth" or "the Company")
SALE OF MTWARA POWER PLANT TO TANZANIA ELECTRIC SUPPLY COMPANY
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:
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;
Allows Wentworth to streamline its Tanzania operations and focus exclusively on exploring for hydrocarbons and developing and producing its known natural gas resources;
Provides Wentworth with non-dilutive capital for near term investment in upstream operations and gas monetisation project development;
Wentworth and its Mnazi Bay Concession partners will continue to supply natural gas to the Mtwara Power Plant;
TANESCO is Tanzania's electrical power utility and is well suited to manage, develop and grow this business; and
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:
|(US$000's)|| 2011 |
(nine months ended September 30)
| 2010 |
(year ended December 31)
(year ended December 31)
|Assets (net book value)||9,426||10,278||8,236|
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".
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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.
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.
The owner of this announcement warrants that:
(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