2021 Reserves Report

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
Reserves Category		Mnazi Bay Field		Wentworth 31.94% WI
		Gross(1) Reserves		Gross(1) Reserves					Net(2) Reserves
		Sales Gas	BOE	Sales Gas			BOE		Sales Gas		BOE
		(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:  Wentworth Resources Katherine Roe, Chief Executive Officer   [e-mail] [phone]     Stifel Nicolaus Europe Limited   AIM Nominated Advisor and Joint Broker  Callum Stewart Ashton Clanfield Simon Mensley   [phone]   Peel Hunt LLP   Joint Broker  Richard Crichton Alexander Allen   [phone]   FTI Consulting   Communications Advisor  Sara Powell Ben Brewerton    [phone] 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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