Wentworth Resources Limited, the Oslo Stock Exchange and AIM listed independent, East Africa-focused oil & gas company, releases its unaudited Q2 2012 Condensed Consolidated Interim Financial Statements and Management's Discussion & Analysis and Director's Report for the second quarter and 6 months ended June 30, 2012.
Mnazi Bay, Tanzania:
* The Company's efforts throughout the first half of 2012 on concluding the previously announced Swap Transaction with Cove Energy PCL's and the previously announced transaction with Maurel & Prom (M&P) for the exercise of M&P's pre-emptive right in respect of the Company's acquisition of Cove Energy's participation interest in the Mnazi Bay Concession resulted in the successful completion of these two transactions in July 2012. At or immediately following completion, the Company:
- received cash consideration of U$18,860,000;
- paid $3,093,000 of closing costs relating to the Company's share of Cove Energy's share of Mnazi Bay Concession expenditures from the effective date of the Swap Transaction to the completion date;
- holds a 31.94 percent participation interest of development and production operations (39.925 percent of exploration operations) in the Mnazi Bay Concession with the exception that the Company will pay 11.98 percent of the next $8,800,000 of capital expenditures; and
- issued 2,000,000 shares to Cove Energy as part of the Swap Transaction.
* The work overs of three wells on the Mnazi Bay and Msimbati gas fields commenced in Q2 2012 following the completion of drilling at the Ziwani-1 exploration well. The work overs will assess the long-term gas deliverability of the wells. The rig was mobilized to the MS-1X well site in June and will move to the MB-3 well site prior to completing the work over programme at the MB-2 well site.
* The Mnazi Bay to Dar es Salaam Gas Pipeline Project was formally inaugurated on July 21, 2012, with construction commencing immediately and expected to take 12 to 14 months to complete. The pipeline will permit the Company access to the greater markets of Tanzania and provide a basis for concluding a Gas Sales Agreement.
Onshore Rovuma, Mozambique:
* The 2D seismic programme progressed with demining and line cutting activities and surveying of prospective seismic lines.
* The Company acquired the remaining non-controlling interest in the subsidiary holding the Company's Tanzanian operations for $1,622,000.
* Cash position of $8,830,000 as at June 30, 2012.
* Following completion of the Swap and M&P transactions the Company has sufficient resources to meet planned capital and operating expenditures for the next 9 to 12 months.
* The three well workover programme in the Mnazi Bay Concession is expected to be completed by the end of August.
* The Company is working with M&P and TPDC to evaluate and agree upon a future exploration programme in the Mnazi Bay Concession which is anticipated to include offshore 3D seismic acquisition and the possibility of an exploration well.
* 2D seismic acquisition in the Onshore Rovuma Basin, Mozambique is expected to be completed by early 2013. Data continues to be processed with full interpretation commencing once sufficient seismic lines have been acquired.
Geoff Bury, Managing Director, commented:
"We are pleased to report our financial results for the second quarter and six months ended June 30, 2012 during which the Company fully funded its oil and gas exploration and development activity with the proceeds it received from the disposal of its power plant and associated assets in Q1 2012. With the successful completion of the asset swap transaction with Cove Energy and purchase and sale transaction with Maurel et Prom, the Company is fully funded for its remaining commitments for 2012 and is in a position of strength to further the development of its attractive assets and seek new strategic growth opportunities to support the Company's ambitions to become a significant gas producer is East Africa."