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TANZANIA: Wentworth Resources Provides Mnazi Bay Update

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Strong Operational Performance

  • Reiterate increased production guidance range for the year of 70 – 80 MMscf/day (gross) compared to previous guidance of 65 – 75 MMscf/day
  • Production at Mnazi Bay averaged 80 MMscf/day (H1 2020: 58 MMscf/day), the highest H1 production performance achieved to date
  • Production capacity of existing wells and production facilities increased to 100 MMscf/day
  • Operational costs of production down 72% to $0.48/Mscf (H1 2020: $1.72/ Mscf), due to continued focus on cost efficiencies
  • Wentworth’s share of Gross 2P Reserves as at 31 December 2020 estimated by RPS to be 90.8 Bcf with a post-tax NPV10 of $116.6 million
  • Sustainability Remains a Priority
  • Stakeholder engagement key to Wentworth’s sustainability strategy; strong relationships with in-country partners including the Government of Tanzania and local communities evidenced by ongoing demand growth, operational performance and payment of receivables
  • Maintaining a robust ESG framework remains a priority following the launch of the inaugural Sustainability Report this year
  • A key focus for 2021 is Wentworth’s climate strategy, to ensure effective measurement and mitigation of climate-related impacts; further updates will be shared in due course
  • Announced membership of the United Nations Global Compact, underlining our commitment to operating responsibly in line with the UN’s Ten Principles on human rights, labour, environment and anti-corruption and to take strategic action to support the UN’s Sustainable Development Goals

Robust 2021 Outlook

  • Record H1 performance to date with average production volumes of 80.33 MMscf/day (gross) compared with H1 2020 average of 58.28 MMscf/day (gross)
  • All-time production volume highs at Mnazi Bay of 110.65 MMscf/day including monthly average production of 101.85 MMscf/day (gross) during March 2021, demonstrating the ability to supply greater than 100 MMscf/day (gross) during periods of high demand
  • Strong in-country natural gas demand in H1 2021 enabled an increase in annual average production guidance for 2021 to 70-80 MMscf/day (gross) from 65-75 MMscf/day (gross) – Wentworth remains on track to meet guidance
  • Ongoing delivery of the Company’s progressive capital returns policy

Katherine Roe, CEO, commented:

‘We are delighted to have delivered a record financial and operational performance in H1 2021 which underpins our decision to increase our interim dividend once again, to $1.32 million. Following a challenging period of global economic uncertainty, to have delivered this record performance demonstrates once again the strength of our fundamentals. Our commitment to maintaining these is unwavering.

‘Whilst we have enjoyed a robust first half, we remain focused on meeting our full year potential and meeting the growing demand in Tanzania for reliable low-cost power. The strength of our team and partnerships, the reliable performance of the Mnazi Bay asset and the improving outlook in Tanzania ensures we are in a positive position for the future.’

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