Wentworth Resources Limited : Mozambique and Tanzania Oil & Gas Resources Update

Thomson Reuters ONE

PRESS RELEASE                                                                             30 SEPTEMBER 2013

MOZAMBIQUE AND TANZANIA OIL & GAS RESOURCES UPDATE

Wentworth Resources Limited ("Wentworth" or the "Company"), the Oslo Stock Exchange and London Stock Exchange (AIM market) listed oil and gas exploration and production company (OSE: WRL/ AIM: WRL.L), is pleased to announce the results of an independent technical evaluation of the Rovuma Onshore License in Mozambique and the Mnazi Bay Concession in Tanzania respectively, carried out by RPS Energy, Calgary, Canada.

This report marks the beginning of a busy operational period for the Company. The Rovuma Onshore License partners have committed to a two-well exploratory drilling programme set to begin in Q2 2014, with an option to drill a third exploration well. The partners in the Mnazi Bay Concession are in advanced negotiations on a gas sales agreement that will commercialize gas via the Mnazi Bay to Dar es Salaam pipeline that is currently under construction by third party contractors for the government of Tanzania.

HEADLINE RESULTS:

  • Potential oil play within the Tembo prospect in the Rovuma Onshore License: 1,205 MMstb gross undiscovered mean Oil-in-Place* 

  • 81% increase from 6.3 Tcf to 11.4 Tcf gross discovered and undiscovered mean Gas Initially-in-Place* for the Rovuma Onshore License and Mnazi Bay Concession areas combined  

  • 7 prospects identified and evaluated in the Rovuma Onshore License (operated by Anadarko) and 6 prospects identified and evaluated in the Mnazi Bay Concession (operated by Maurel et Prom) 

Rovuma Onshore License, Mozambique

Under All Prospects as Gas Scenario

  • An increase in net mean prospective (unrisked) gas resources from 177 Bscf to 550 Bscf, an increase of 211% 

  • An increase in net P10 prospective (unrisked) gas resources from 315 Bscf to 825 Bscf, an increase of 162%  

Under Tembo Prospect Oil Scenario

  • Tembo prospect identified as potentially oil-bearing and scheduled to be first prospect to be drilled in Mozambique 

  • An increase in net mean prospective (unrisked) gas resources from 177 Bscf to 375 Bscf plus 32 MMstb oil 

  • An increase in net P10 prospective (unrisked) gas resources from 315 Bscf to 513 Bscf plus 90 MMstb oil 

Mnazi Bay PSA, Tanzania

  • Net mean contingent gas resources maintained at 266 Bscf while net mean prospective (unrisked) gas resources decreased from 823 Bscf to 637 Bscf due to the uncommercial hydrocarbons encountered in the Ziwani-1 well in 2012  

Certain key extracts from RPS` Competent Person`s Report ("CPR") follow and the complete updated CPR is available for download on the Company`s website at www.wentworthresources.com.

Figures quoted are net to WentworthP90P50MeanP10
Rovuma Onshore, Mozambique (GAS CASE)
GIIP551 Bscf831 Bscf901 Bscf1,340 Bscf
Prospective (Unrisked) 330 Bscf504 Bscf550 Bscf825 Bscf
Rovuma Onshore, Mozambique (OIL CASE)
GIIP425 Bscf594 Bscf618 Bscf834 Bscf
OIP12 MMstb88 MMstb140 MMstb325 MMstb
Prospective - gas (Unrisked) 254 Bscf359 Bscf375 Bscf513 Bscf
Prospective - oil (Unrisked)3 MMstb22 MMstb32 MMstb90 MMstb
Mnazi Bay, Tanzania
GIIP (contingent plus prospective)789 Bscf1,243 Bscf1,348 Bscf2,033 Bscf
Contingent (Unrisked)86.6 Bscf213 Bscf266 Bscf509 Bscf
Prospective (Unrisked) 425 Bscf614 Bscf637 Bscf879 Bscf
TOTAL MOZAMBIQUE (USING OIL CASE) AND TANZANIA
GIIP1,214 Bscf1,837 Bscf1,966 Bscf2,867 Bscf
OIP12 MMstb88 MMstb140 MMstb325 MMstb
Contingent (Unrisked)86.6 Bscf213 Bscf266 Bscf509 Bscf
Prospective - gas (Unrisked) 679 Bscf973 Bscf1,012 Bscf1,392 Bscf
Prospective - oil (Unrisked)3 MMstb22 MMstb32 MMstb90 MMstb

Wentworth Managing Director, Geoff Bury, commented:  

"Receiving a significant gas resources upgrade for our Onshore Rovuma License area and the fact that we now have an oil prospect to drill in Mozambique in Q2 2014 is highly encouraging.  We are entering into a potentially transformational 15 month period for the Company.  At least two Anadarko operated exploration wells will be drilled in Mozambique, which could offer significant upside to shareholders.  In addition, first gas delivery into the new pipeline in Tanzania is expected in early 2015 increasing estimated gross gas production to 80 mmcf/day, a 40-fold increase over current production."  

Enquiries:

Wentworth Geoff Bury, Managing Director gpb@wentworthresources.com
Eric Fore, Finance & Investor

Relations Manager
etf@wentworthresources.com

+971 (0) 50 458 0422
Panmure Gordon AIM NOMAD & broker +44 (0) 20 7886 2500
Callum Stewart

Adam James

Charlie Leigh-Pemberton
FirstEnergy Capital Broker +44 (0) 20 7448 0200
Majid Shafiq

Travis Inlow
College Hill Investor relations adviser +44 (0) 20 7457 2020
Catherine Wickman

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Jan Petter Stiff

Fredrik Eeg

About Wentworth Resources

Wentworth Resources is a publicly traded (OSE:WRL, AIM:WRL), independent oil & gas company with:  natural gas production; midstream assets; a committed exploration and appraisal drilling programme; and large-scale gas monetisation opportunities, all in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique.

RPS MOZAMBIQUE AND TANZANIA RESOURCES ASSESSMENT

Prospective Resources - Rovuma Onshore License, Mozambique

RPS has identified seven prospects on the Rovuma Onshore License. The tables below show RPS`s estimates of prospective resources:

Rovuma Onshore Block Unrisked Resource Estimates - GIIP (Bscf)
100% Field ValuesWentworth 11.59% Interest
ProspectP90P50MeanP10P90P50MeanP10
Tembo2431,6432,4415,61028190283650
Maroon8821,5711,6792,627102182195304
Orange105366453904124253105
Pink3768461,0011,8164498116210
Scarlett3539921,2532,47141115145286
Teal18335639264921414575
Yellow234497551942275864109
Stochastic Total (unrisked)4,7577,1677,77111,5615518319011,340

Rovuma Onshore Block Unrisked Prospective Recoverable Resources (Bscf)
100% Field ValuesWentworth 11.59% Interest
ProspectP90P50MeanP10P90P50MeanP10
Tembo1439741,4823,41917113172396
Maroon5249401,0181,61360.7109118187
Orange622192755597253265
Pink2165066071,120255970130
Scarlett2055917601,515246888176
Teal10821423839712.5252846
Yellow13830133758616353968
Stochastic Total (unrisked)2,8494,3474,7457,121330504550825

RPS considers that the prospects` hydrocarbons are more likely to be gas than oil.  However, there is some possibility that the Tembo prospect may contain oil (estimated by RPS to be about 30% - 40%).  In this case (which is called the "oil case") the consolidated prospect totals would be as shown in the following tables:

Rovuma Onshore Block Unrisked Resource Estimates - `Oil Case` GIIP (Bscf & MMstb)
100% Field ValuesWentworth 11.59% Interest
ProspectP90P50MeanP10P90P50MeanP10
(MMstb)(MMstb)(MMstb)(MMstb)(MMstb)(MMstb)(MMstb)(MMstb)
Tembo 1077561,2052,8081288140325
Total Oil1077561,2052,8081288140325
(Bscf)(Bscf)(Bscf)(Bscf)(Bscf)(Bscf)(Bscf)(Bscf)
Maroon8821,5711,6792,627102182195304
Orange105366453904124253105
Pink3768461,0011,8164498116210
Scarlett3539921,2532,47141115145286
Teal18335639264921414575
Yellow234497551942275864109
Stochastic Total (unrisked)3,6675,1235,3297,198425594618834

Rovuma Onshore Block Unrisked Prospective Recoverable Resources - `Oil Case` (Bscf & MMstb)
100% Field ValuesWentworth 11.59% Interest
ProspectP90P50MeanP10P90P50MeanP10
(MMstb)(MMstb)(MMstb)(MMstb)(MMstb)(MMstb)(MMstb)(MMstb)
Tembo 251922777803223290
Total Oil251922777803223290
(Bscf)(Bscf)(Bscf)(Bscf)(Bscf)(Bscf)(Bscf)(Bscf)
Maroon5249401,0181,61360.7109118187
Orange622192755597253265
Pink2165066071,120255970130
Scarlett2055917601,515246888176
Teal10821423839712.5252846
Yellow13830133758616353968
Stochastic Total (unrisked)2,1943,1003,2344,428254359375513

Partners in the Rovuma Onshore License are:

Anadarko:     42% (Operator) through exploration; 35.7% production

Wentworth:     13.64% through exploration; 11.59% production

Maurel et Prom:   32.6% through exploration; 27.71% production

PTTEP:       11.76% through exploration; 10% production

ENH:       15% production

Contingent Resources - Mnazi Bay PSA, Tanzania

RPS estimates of contingent resources for the Mnazi Bay and Msimbati gas fields are shown in the following tables:

Mnazi Bay & Msimbati Unrisked Resource Estimates - GIIP (Bscf)
100% Field ValuesWentworth 31.94% Interest
Field        P90P50MeanP10P90P50Mean
Upper & Lower Msimbati        42122166334133953
Msimbati NE        30112161347103651
Msimbati NE Extension        736561252.21118
Upper & Lower Mnazi        2105617301,44267179233
Total(*)        3658921,1122,117117285355

Mnazi Bay & Msimbati Unrisked Resource Estimates - EUR (Bscf)
100% Field ValuesWentworth 31.94% Interest
Field        P90P50MeanP10P90P50Mean
Upper & Lower Msimbati        3191124252102940
Msimbati NE        228412126172739
Msimbati NE Extension        52742931.68.613
Upper & Lower Mnazi        1564195471,08550134175
Total(*)        2716678341,59486.6213266

(*) Totals determined probabilistically and do not sum arithmetically except the mean values.

Prospective Resources - Mnazi Bay PSA, Tanzania

On the Mnazi Bay license area, RPS has estimated the quantity of undiscovered gas resources that are likely to co-exist within six identified prospect locations.  The tables below show RPS`s estimates of prospective resources:

Mnazi Bay Unrisked Prospective Resource Estimates - GIIP (Bscf)
100% Field ValuesWentworth 39.925% Interest
ProspectP90P50MeanP10P90P50MeanP10
Nanguruwe389611020215384481
Nanguruwe North24851092259.6344390
Nanguruwe West2395946821,24795237272498
Mwambo298572612975119228244389
OSX-12576437231,292103257289516
OSX-295222248434388999173
Stochastic Total (unrisked)1,6832,4002,4863,4006729589931,357

Mnazi Bay Unrisked Prospective Resource Estimates - EUR (Bscf)
100% Field ValuesWentworth 39.925% Interest
ProspectP90P50MeanP10P90P50MeanP10
Nanguruwe2362721339.2252953
Nanguruwe North1451661365.6202654
Nanguruwe West13835441576955141166307
Mwambo19136939964076147159256
OSX-116441447184765165188338
OSX-261142161287245764115
Stochastic Total (unrisked)1,0641,5371,5962,201425614637879

Partners in the Mnazi Bay PSA are:

Maurel et Prom:   60.075% (Operator) through exploration; 48.06% production

Wentworth:     39.925% through exploration; 31.94% production

TPDC:       20% production

The updated RPS Competent Person`s Report ("CPR") is available for download on the Company`s website at www.wentworthresources.com.

Notes and Glossary

* The terms `Discovered and Undiscovered Oil or Gas Initially-in-Place` are used in accordance with the SPE Petroleum Resources Management System classification of 2007. Previously reported Contingent and Prospective Gas Initially-in-Place numbers are equivalent to the Discovered and Undiscovered GIIP classification.

This announcement and the Competent Person`s Report have been prepared using the Standard of SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007.

Gerold Fong, Vice President Exploration of the Company and an Exploration Geophysicist with over 30 years of international and frontier experience in many basins worldwide, has read and approved the technical disclosure in this regulatory announcement. Mr. Fong holds a B.sc. in Geophysics from the University of Calgary and is a member of the Association of Professional Engineers and Geoscientist of Alberta.

Bscfbillion standard cubic feet
Contingent ResourcesQuantities of petroleum estimated, as at a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies
EUREstimated Ultimate Recovery
GCoSGeological probability of success
GIIPGas Initially In Place
MMstbmillion barrels
OIPOil in Place
Prospective ResourcesDeposits that are estimated, on a given date, to be potentially recoverable from accumulations yet to be discovered
PSAProduction sharing agreement
Tcftrillion standard cubic feet
TPDCTanzania Petroleum Development Corporation

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, 2012, available on Wentworth`s website, for further description of the risks and uncertainties associated with Wentworth`s business.

NOTICE

Neither the Oslo Stock 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.

ENDS

2013 09 30 Press Release



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