WENTWORTH RESOURCES LIMITED
("Wentworth")
ADDITIONAL INFORMATION REGARDING ACQUISITION OF
COVE ENERGY'S INTEREST IN MNAZI BAY CONCESSION, TANZANIA
(the "Transaction")
Further to the announcement on January 30, 2012 regarding the acquisition of Cove's interest in Mnazi Bay concession, and as required by the Oslo Stock Exchange, we are pleased to provide the following additional information regarding the Transaction:
Acquiring Company Information
Wentworth is acquiring Cove Energy's 100% owned subsidiary, Cove Energy Tanzania Mnazi Bay Limited ("Cove Tanzania"). Cove Tanzania's company and financial details are as follows:
Incorporated in the Republic of Cyprus on September 14, 2009 as a private limited company;
Principal activity is oil and gas exploration and production in Mnazi Bay, Tanzania;
Holds a 16.38% participating interest in production operations (20.475% participating interest in exploration operations) in the Mnazi Bay Concession through a Production Sharing Agreement originally entered into between Wentworth Resources Limited, Tanzania Petroleum Development Corporation and the Government of Tanzania in May 2004;
Cove Tanzania has no employees. The current directors of Cove Tanzania are:
Michael Nolan;
Annie Yeap; and
Eleni Theodorou
Key financial data (IFRS) for Cove Tanzania is as follows:
| In US$ | For the period from incorporation on 14 September 2009 to 31 December 2010 (audited) | For the 9 months ended September 30, 2011 (unaudited) |
| Revenue | 363,453 | 343,461 |
| Operating profit (loss) for the period | (30,547) | 111,875 |
| Total assets | 3,445,291 | 4,335,130 |
Expected Timeline to Closing
The Transaction is subject to pre-emption rights. The pre-emption period is 30 days from the issuance of the pre-emption notice. Notice was given to the remaining partners on January 30, 2012 and therefore the pre-emption period ends on February 29, 2012. The Transaction is expected to close immediately following the pre-emption period or sooner if both partners notify Wentworth of their intent in writing prior to the end of the pre-emption period but could extend beyond that date depending upon Government approvals.
About the Mnazi Bay Concession
The Mnazi Bay Concession Area is located in coastal, south-eastern Tanzania in the Rovuma (Ruvuma) Basin. The area lies between Aminex and Tullow Oil's Ruvuma Concession Area and Ophir Energy and BG Group's offshore Block 1. Ophir and BG Group's Chaza-1 gas discovery lies just northeast of Mnazi Bay's marine border. The 756 km² concession area contains two discovered Tertiary aged gas fields (Mnazi Bay and Msimbati) and holds additional Tertiary, Cretaceous and Jurassic hydrocarbon potential. Four wells have been drilled to date: MB-1, MB-2, MB-3 and MS-1X, and all four wells encountered hydrocarbons. MB-1 is currently producing gas at a rate of 1.7-2.0mmscf/d and this gas is transported via an 8", 27 kilometre pipeline to the Mtwara Power Plant where it generates electricity for numerous local communities.
Enquiries:
| Wentworth | Bob McBean, Executive Chairman | rpm@wentworthresources.com | |||
| Eric Fore, Finance, Investor & Public Relations Manager | etf@wentworthresources.com | ||||
| Panmure Gordon | Nominated adviser & broker | +44 (0) 20 7459 3600 | |||
| Katherine Roe Brett Jacobs | |||||
| FirstEnergy Capital | Broker | +44 (0) 20 7448 0200 | |||
| Majid Shafiq Travis Inlow | |||||
| College Hill | Investment relations adviser | +44 (0) 20 7457 2020 | |||
| Nick Elwes Catherine Maitland Alexandra Roper | |||||
| Axxept | Investment relations adviser | +47 (0) 99 22 0200 | |||
| Per Arne Totland | |||||
About Wentworth Resources
Wentworth Resources is a publicly traded (AIM:WRL, OSE:WRL), independent oil & gas company with: natural gas production; midstream and downstream assets; a committed exploration and appraisal drilling programme; and large-scale gas monetisation programmes, all in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique.
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, 2010, available on Wentworth's website, for further description of the risks and uncertainties associated with Wentworth's business.
NOTICE
Neither the Oslo Bors 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.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Wentworth Resources Limited via Thomson Reuters ONE
