TANZANIA: Wentworth Resources Provides Operational Update and Reserves Update

Highlights

·    To date, there have been zero reported cases of COVID-19 at Mnazi Bay. Employee safety remains a top priority and robust precautionary measures remain in place

·    Wentworth’s share of gross 2P Reserves as at 31 December 2020 estimated by RPS Group to be 142.2 Bcf (23.7 mmboe) with a post-tax NPV10 of $116.6 million

·    Debt free with $17.8 million cash on hand as at 31 December 2020 (unaudited)

·    Production guidance for full-year 2021 set at 65-75 MMscf/day (gross)

 Mnazi Bay Operations and Operational Outlook

·    Repairs to the MB-2 flowline were completed on time on 9 December 2020 and the well has continued to perform in line with expectations

·    A planned slickline campaign commenced on 22 January 2021 which primarily includes a continuation of the Mnazi Bay Partners’ ongoing pressure monitoring programmes. 

Reserves Update

RPS Group, an independent third-party reserves evaluator, performed a Competent Persons Report (“CPR”) for the Company with an effective date of 31 December 2020.  The updated full field 2P gross reserves for Mnazi Bay are 445.3 Bcf (90.8 Bcf being Wentworth’s share of net reserves).  This compares to 468.9 Bcf as at 31 December 2019. As full-year 2020 gross production totaled 23.9 Bcf (gross), this demonstrates a minimal change attributable to technical and economic factors to previous reserves estimates.

The NPV10 after tax for the 2P reserves as at 31 December 2020 is $116.6 million net to Wentworth. This compares to $118.6 million for 2019.  It should be noted that during 2020, Wentworth increased its cash position to $17.8 million (unaudited), while distributing $3.2 million in dividends, compared to cash of $13.5 million as at 31 December 2019.

⁽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

Katherine Roe, CEO, commented:

“The results of our 2020 Competent Persons Report show the continued strong technical fundamentals underlying the Mnazi Bay field and its potential to generate strong, long-term free cash flows that  form the basis of our sustainable dividend policy.  We look forward to continuing to use our fiscal discipline and financial performance to create further value for shareholders.”