22nd Jun 2016 07:32
LONDON (Alliance News) - Wentworth Resources Ltd said Wednesday that its operatorship and appraisal plan for its appraisal asset in Mozambique has been approved and expressed confidence in its long-term growth prospects.
The Oslo and London-listed oil and gas company with assets in East Africa said that, under the approved plan, it will become the operator of the Rovuma onshore concession and will increase its interest in the concession to 85% from 12%.
State owned Empresa Nacional de Hidrocarbonetos will retain a 15% stake in the concession, and has the right to acquire a further 15% stake within a year and a half.
In a statement ahead of its annual general meeting Wentworth said that implementation of a work program will begin in 2016, with the reprocessing around 1,000 kilometres of existing seismic data. Beginning in the second half of 2017, it plans to acquire a minimum 500 kilometres of new onshore 2D seismic data. The drilling of an appraisal well is expected to happen in 2018.
Meanwhile, at its operations in Mnazi Bay, Tanzania, production volumes have been ramping up. However, volumes were curtailed during April due to heavy rains. Additionally, sales volumes to the pipeline have been maintained at 50 million standard cubid feet per day since the beginning of June due to a dispute between Symbion, one of the power plants which uses Mnazi Bay gas, and the state owned energy company.
Wentworth said it was unclear how long it would be until this dispute is resolved, and until it is, expects volumes to remain at this level.
"I am very pleased to announce the receipt of government approval for our operatorship and appraisal plan over the Tembo-1 gas discovery in Mozambique. With all the data gained to date through our exploration drilling and seismic interpretation, we believe this area of onshore Mozambique to be highly prospective and although we expect minimal capital spend this year, I am looking forward to working with ENH as we progress this acreage position toward appraisal drilling in the future," said Executive Chairman Bob McBean in the statement.
Shares in Wentworth were down 3.6% at 26.50 pence Wednesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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