AMINEX - Re: AEX Stream Log - Wentworth have signed their gas...

Wentworth have signed their gas sales agreement Wentworth Signs Long-term Gas Sales Agreement for Mnazi Bay and Msimbati Gas Fields Tanzania PRESS RELEASE 15 September 2014 Wentworth Resources Limited ("Wentworth" or the "Company") Wentworth Signs Long-term Gas Sales Agreement for Mnazi Bay and Msimbati Gas Fields Tanzania Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company, announces that it has signed a gas sales and purchase agreement ("Mnazi Bay GSA") with TPDC, along with Mnazi Bay license partners Maurel et Prom ("M&P") and Tanzania Petroleum Development Corporation ("TPDC") (together the "Mnazi Bay Partners"). The Mnazi Bay GSA covers the long-term sale of natural gas from the Mnazi Bay and Msimbati fields in southern Tanzania to the Government owned and operated Mtwara to Dar es Salaam pipeline and Madimba central processing facility ("Pipeline Project"), which is currently under construction and scheduled for completion and commissioning in Q1 2015. Pursuant to the Mnazi Bay GSA, the Mnazi Bay Partners are contracted to supply to the Pipeline Project up to a maximum 80 mmcf/day of natural gas during the first eight months with an option to increase over time to a maximum 130 mmcf/day of natural gas for up to a 17-year supply period. The Mnazi Bay GSA is subject to certain conditions, including the Tanzanian Government providing all necessary approvals and an executed version of payment security agreements prior to delivery of first gas. The initial delivery is expected to begin during the period 22 January 2015 and 22 April 2015 and be at a fixed price of US$3.00 per mmbtu (approximately US$3.07 per mcf), escalating with United States CPI Industrial index. The gas will be sold and purchased at the inlet to a 16 inch pipeline connecting the Mnazi Bay gas production facility to the Madimba central processing facility. The Mnazi Bay Partners are not responsible for paying a tariff for transporting the gas nor are they paying for any third party processing fees. With a long-term contract in place, the Mnazi Bay Partners will use the time before the commencement of first gas delivery to finalize the design, construct, and commission the necessary surface infrastructure, including separation facilities and flow lines, to tie existing wells into the Pipeline Project. Gas will be produced from the existing four wells in the Mnazi Bay and Msimbati fields and these wells are expected to be capable of producing natural gas sufficient to meet the initial 80 mmcf/day delivery volumes under the Mnazi Bay GSA. Bob McBean, Executive Chairman of Wentworth, commented: "The signing of the Mnazi Bay GSA is a significant advancement in the development of the gas industry and lays the foundation for the future domestic gas development in Tanzania. Additionally, this agreement is a major milestone in Wentworth's gas monetisation strategy to commercialise our discovered gas resources, taking us a step closer to reclassifying our resources to reserves, and is a significant value driver for the Company. I would like to thank all parties involved for the professionalism and dedication shown during the negotiation process." "Following the processing and interpretation of recently acquired high resolution 2D data over the Mnazi Bay and Msimbati gas fields we plan to commence a development drilling programme with the aim of increasing production up to 130mmcf/day. We maintain a strong commitment to exploring for oil and gas in the Ruvuma Basin, within Tanzania and Mozambique, and expect to be in the enviable position of having positive cash flow available to fund both our exploration and development capital programmes in 2015." -Ends- Enquiries: Wentworth Geoffrey Bury, Managing Director [email protected] +1 403 993 4450 Lance Mierendorf, Chief Financial Officer [email protected] +1 403 680 8773 Katherine Roe Head of Investor Relations & Corporate Communications [email protected] +44 7841 087 230 Swedbank First Securities Broker(Norway) +47 23 23 80 00 Ove Gusevik Jarand Lønne Crux Kommunikasjon Investor Relations Adviser (Norway) +47 995 138 91 Jan Petter Stiff Fredrik Eeg Panmure Gordon AIM Nominated Adviser and Broker (UK) +44 (0) 20 7886 2500 Dominic Morley Adam James Tom Salvesen Duncan Monteith FirstEnergy Capital Broker (UK) +44 (0) 20 7448 0200 Majid Shafiq Travis Inlow Investec Broker (UK) +44 (0) 20 7597 4000 Chris Sim Instinctif Partners Investor Relations Adviser (UK) +44 (0) 20 7457 2020 Catherine Wickman Harry Cameron