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21 FEBRUARY 2012 WENTWORTH RESOURCES LIMITED ("Wentworth" or the "Company") PRE-EMPTION UPDATE REGARDING ACQUISITION OF COVE ENERGY'S INTEREST IN MNAZI BAY CONCESSION, TANZANIA Further to the announcements on January 30, 2012 and February 1, 2012, regarding Wentworth's proposed acquisition of Cove Energy plc's ("Cove Energy") 16.38% participation interest in the production operations (20.475% participation interest in exploration operations) in the Mnazi Bay Concession (the "Transaction" and the "Concession" respectively), the Company is pleased to provide the following update: The Government of Tanzania has approved the Transaction Concession partner and operator, M&P Exploration and Production Tanzania Limited ("M&P"), has elected to exercise its right of pre-emption under the Joint Operating Agreement M&P's election to exercise its right of pre-emption is subject to government approval, and Concession partner, Tanzania Petroleum Development Corporation ("TPDC"), has elected not to exercise its right of pre-emption.
Pre-emption affect on the Participation Interest in the Concession Upon receipt of government approval of M&P's pre-emptive election and consideration from M&P to Wentworth for their prorata share (60.075%) of the cash equivalent value of the Transaction (approximately US$38.8 million) the Concession partnership will be as follows: | Partner | Percentage Interest in Production | Percentage Interest in Exploration | | M&P (operator) | 48.06 | 60.075 | | Wentworth | 31.94 | 39.925 | | TPDC | 20.00 | - |
Managing Director, Geoff Bury, commented: "We welcomed the opportunity to acquire a larger stake in Mnazi Bay and are supportive of M&P's decision to acquire its prorata share of Cove Energy's interest, as it reflects our own confidence in and commitment to this concession. We wish to thank the Government of Tanzania and TPDC for their professionalism and swift action to approve our initial Transaction and we look forward to reporting our current drilling progress to all our stakeholders." ENDS 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. Four wells have been drilled to date: MB-1, MB-2, MB-3 and MS-1X, and all four 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. A new exploration well, Ziwani-1, is currently being drilled approximately 13 kilometres to the west of the producing Mnazi Bay and Msimbati Gas Fields. Enquiries: | Wentworth | Bob McBean, Executive Chairman | rpm@wentworthresources.com | | | | Eric Fore, Finance, Investor & Public Relations Manager | etf@wentworthresources.com | | | | | | | Panmure Gordon | Nominated adviser & broker | +44 (0) 20 7459 3600 | | | | Katherine Roe Brett Jacobs | | | | | | | | FirstEnergy Capital | Broker | +44 (0) 20 7448 0200 | | | Majid Shafiq Travis Inlow | | | | College Hill | Investment relations adviser | +44 (0) 20 7457 2020 | | | | Nick Elwes Catherine Maitland Alexandra Roper | | | Axxept | Investment relations adviser | +47 (0) 99 22 0200 | | | | Per Arne Totland | |
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, 2010, available on Wentworth's website, for further description of the risks and uncertainties associated with Wentworth's business. NOTICE Neither the Oslo Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed this press release and neither accepts responsibility for the adequacy or accuracy of this press release. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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Source: Wentworth Resources Limited via Thomson Reuters ONE
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