Potential Exercise of Ruvuma Pre-Emption Rights

RNS Number : 2425S

Wentworth Resources PLC

12 July 2022

 

12 July 2022

WENTWORTH RESOURCES PLC
("Wentworth" or the "Company")

Potential Exercise of Ruvuma Pre-Emption Rights 

Wentworth Resources (AIM: WEN ), the independent, Tanzania-focused natural gas production company, notes today's announcement from Scirocco Energy plc ("Scirocco") in relation to the Company's proposed acquisition of the 25% non-operated working interest in the Ruvuma Production Sharing Agreement ("Ruvuma Asset") announced on 13 June 2022 (the "Proposed Acquisition").

Scirocco announced that it has been informed by its partner ARA Petroleum Tanzania Ltd ("ARA") of its intention to exercise its pre-emption rights in relation to the Proposed Acquisition under the terms of the Joint Operating Agreement. This Pre-emption would be subject to approval by the Government of Tanzania.

In addition, Scirocco confirmed that Tanzania Petroleum Development Corporation ("TPDC"), the national oil company of Tanzania and wholly owned by the Government of Tanzania, has indicated that it is considering exercising its statutory right of first refusal in relation to the Proposed Acquisition pursuant to Section 86(5) of the Petroleum Act 2015.

Scirocco is now taking advice to understand the implications of these developments and will then enter into discussions with each party to confirm next steps.

In the event that Pre-emption does not proceed, Wentworth remains committed to the Proposed Acquisition.

No payment under the loan facility arrangement has been made to Scirocco and no consideration will be due unless the Proposed Acquisition completes.

Katherine Roe, CEO, Wentworth, said:

"The discussions regarding a potential exercise of pre-emption rights by Scirocco's partners underline the compelling economics of the transaction we constructed, which was designed to be in the best interests of our shareholders and in-country stakeholders with a focus on driving reinvestment into the Ruvuma Asset and into Tanzania.

"We will await the outcome of the pre-emption discussions and provide a further update in due course."

Ends

Enquiries:
Wentworth Resources	Katherine Roe, Chief Executive Officer	[e-mail] [phone]
Stifel Nicolaus Europe Limited	AIM Nominated Adviser 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 Ollie Mills	[phone]

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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