23 JULY 2012
WENTWORTH RESOURCES LIMITED
("Wentworth" or the "Company")
INAUGURATION OF THE MNAZI BAY TO DAR ES SALAAM GAS PIPELINE PROJECT
The government of the United Republic of Tanzania officially inaugurated the Mnazi Bay to Dar es Salaam Gas Pipeline Project on Saturday, July 21, 2012. The pipeline is expected to be approximately 532 km long with a 36" main line and one 24" spur line. Construction of the pipeline will begin immediately and is expected to take 12-14 months to complete. This is an very signifcant project for the country and on completion will allow the Mnazi Bay Concession partners and others to transport natural gas to large-scale electricity producers, other industrial users and major population centres in Tanzania.
Selling gas into this coastal, transnational pipeline will be a significant event in the history of Wentworth. Since the discovery of the Mnazi Bay gas field in 1982 the substantial gas resources in this concession have been effectively "stranded". Gaining access to the greater markets of Tanzania is expected to allow full production from the Company's existing and future gas wells. Currently three of four existing wells are being worked over to maximize their long term productivity. The outcome of this work will provide a basis for concluding an immediate Gas Sales Agreement to supply the pipeline and for future development of the Mnazi Bay and Msimbati gas fields.
Senior Wentworth executives attended a two-day event to inaugurate the pipeline project. Project presentations were given on Friday, July 20, 2012 in Madimba village. On Saturday, July 21, 2012 Honorable Professor Sospeter Mhongo (MP), Tanzanian Minister of Energy and Minerals, led the official groundbreaking ceremony. Also on Saturday July 21st, the Company co-hosted Permanent Secretary of the Ministry of Energy and Minerals, Eliakim Maswi at the Concession partners' gas processing facilities in Mnazi Bay.
Executive Chairman, Bob McBean, commented:
"As a committed supplier of gas to the pipeline we were honored to attend and participate in the inauguration of this historically important project. This is the beginning of Tanzania's future as a significant gas producing country and we are proud to be a partner in this endeavour ."
About the Mnazi Bay Concession
The Mnazi Bay Concession Area is located in coastal, south-eastern Tanzania in the Ruvuma Basin. The area lies between Aminex's Ruvuma Concession Area and BG Group's offshore Block 1. 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. Five wells have been drilled to date: MB-1, MB-2, MB-3, MS-1X, and Ziwani-1 and all five 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.
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About Wentworth Resources
Wentworth Resources is a publicly traded (AIM:WRL, OSE: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.
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, 2011, available on Wentworth's website, for further description of the risks and uncertainties associated with Wentworth's business.
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(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Wentworth Resources Limited via Thomson Reuters ONE