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BREAKING: Wentworth Resources Decides To Leave Mozambique As Tembo Falls Short
3:29 CAT | 17 Dec 2018
In file CoM
Wentworth Resources PLC on Monday it will relinquish its 85% holding in the Tembo block, onshore Mozambique, in April 2019, in line with plans to exit operations in the country altogether.
In October, Wentworth conducted a “detailed” re-evaluation of its Tembo discovery in north-eastern Mozambique.
The in-house study suggested the block “likely” has in-place gross volumes of about 87 billion standard cubic feet of gas with recoverable volumes of about 61 billion standard cubic feet of gas.
Wentworth said the estimates were lowered from previous ones. This was driven by a decrease in the interpreted reservoir storage properties and a more restricted sand fairway system. Due to the lack of adjacent infrastructure, Wentworth said that a gas discovery would be “stranded”.
As a result, Wentworth intends to relinquish the block with effect on April 30, 2019. The company itself also will exit Mozambique, closing its office in Maputo and shut down activities in the Muxara and Palma camps, to focus on its Mnazi Bay asset in Tanzania.
“We have now completed a thorough technical and commercial review of the company’s asset portfolio and determined that our Tembo asset does not provide us with suitable monetisation solutions in keeping with our material growth mandate. We have appreciated the excellent relationships to date with ENH, the national oil company of Mozambique, and INP, the national regulator, and will work hard to ensure an efficient and smooth transition period for all
stakeholders,” said Chief Executive Office Eskil Jersing.
Shares in Wentworth Resources were up 4.6% at 23.00 pence on Monday.
By Dayo Laniyan
Source: Morningstar
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