Wentworth Resources provides operational update on Tanzania, Mozambique

1/11/2018

CALGARY -- Wentworth, the Oslo Stock Exchange and AIM-listed independent, East Africa-focused oil & gas company, is today providing an update to shareholders.

Mnazi Bay Production, Tanzania

Gas demand for the company's producing reserves continues to grow following the commissioning and startup of the country’s newest gas-fired electrical power generation facility, Kinyerezi-2, with the first two of six turbines now operational. This new demand, combined with existing demand from the Kinyerezi-1 and Ubungo II power facilities, the lack of any material impact from hydro-electric power generation which typically occurs in second quarter and burgeoning growth in demand from industrial customers, culminated in a daily production exit rate for 2017 of 73.4 MMscfd (gross). These were the highest production volumes produced from the Mnazi Bay field last year.

Mnazi Bay achieved average gas production in fourth-quarter 2017 of 62.2 MMscfd. Taking into account the seasonal variability of Q2 due to displacement hydro-electric power generation during the annual rainy season, as well as production from industry competitors the average production for the full year 2017 was 49.1 MMscfd. This was at the upper end of the company’s 2017 production guidance range of 40 to 50 MMscfd.

2018 Production Guidance and Outlook

For 2018, the company anticipates further growth in gas demand from the Kinyerezi-2 power facility as an additional four gas-fired turbines are expected to be commissioned during the year. New gas demand from the industrial sector in 2018 is also expected from the Dangote Cement factory when it begins using natural gas for in its operations as well as other new industrial customers.

For 2018, based on growing demand and taking into account the annual and seasonal lower demand during the second-quarter rainy season, full- year average production is expected to be in the range of 65 to 75 MMscfd. The company will continue to update the market as new sources of demand materialize.

Tembo Appraisal, Mozambique

Design and procurement activities for the drilling of an appraisal well of the Tembo-1 gas discovery, are ongoing concurrent with the farm-out process to secure an industry partner to participate in the appraisal program. The company anticipates the drilling of the appraisal well in third-quarter 2018, subject to securing a partner.

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