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TANZANIA: Wentworth Resources Final Results for the year ended 31 December 2020
April 22, 2021 Countries

Financial

·    Declaring a final dividend in respect of FY 2020 of 1.0 pence per share ($2.6 million); a total dividend distribution in respect of 2020 of $3.8 million (1.5 pence per share) representing an increase of 27% from 2019 ($3.0 million) and a yield of approximately 6.7% (calculated on an annualised basis)

·    Strong and resilient financial performance against a challenging macro-economic backdrop

·    Revenues of $18.9 million (2019: $18.6 million), underpinned by long-term fixed gas price contracts

·    Adjusted earnings before interest, taxes, depreciation, amortization and exploration (EBITDAX) of $9.7 million (2018: $8.8 million)

·    Debt free with cash on hand of $17.8 million at 31 December 2020

·    TPDC continues to remain fully current with all invoices for gas sales

Operational

·    Production averaged 65.5 MMscf/day (2019: 70.3 MMscf/day), lower due to fluctuating demand but in line with guidance of 60-70 MMscf/day

·    Capacity from existing wells and production facilities increased to in excess of 100 MMscf/day

·    Low operational cost of production of $0.69 / Mscf

·    Wentworth’s share of Gross 2P Reserves as at 31 December 2020 estimated by RPS to be 90.8 Bcf with a post-tax NPV10 of $116.6 million

Sustainability

·    Ongoing ESG strategy remains a priority with a focus on measurement and mitigation strategies for climate-related impacts in 2021

Sustainability Report

·    Published inaugural Sustainability Report for 2020; it addresses how we manage the impacts of our business by upholding relevant international standards and how we take our responsibility to our stakeholders, society and the environment seriously

·    Announced membership of the United Nations  Global Compact, underlining our commitment to operating responsibly in line with the UN’s Ten Principles on human rights, labour, environment and anti-corruption and to take strategic action to the support the UN’s Sustainable Development Goals

Social and Environmental Impact

·    The power access gap in Tanzania is growing despite domestic energy supply increasing; transformational  growth is needed in domestic energy supply to deliver the Government’s target of universal access by 2030 through low-cost, low carbon solutions that will secure a just transition for Tanzania

·    Natural gas will play a critical role in meeting this target to support cheaper and more reliable electricity as well as facilitating an enabling environment to supplement carbon-free renewable energy systems, such as hydro and solar

·    Natural gas constitutes 50% of Tanzania’s energy mix:

o  Production from Mnazi Bay constitutes 50% of the gas produced into the grid

o  30% of Tanzania’s electricity customers rely on Mnazi Bay gas

·    Wentworth and its partners play an important role in delivering on UN Sustainable Development Goal 7, ensuring universal access to affordable, reliable and modern energy services

2021 Outlook

·    Record quarter performance to date with average production volumes for Q1 2021 of 84.74 MMscf/day (gross) compared with Q1 2020 average of 63.60 MMscf/day (gross)

·    All-time production volume highs at Mnazi Bay of 110.65 MMscf/day including monthly average production of 101.85 MMscf/day (gross) during March 2021, demonstrating the ability to supply greater than 100 MMscf/day (gross) consistently during periods of high demand

·    2021 Mnazi Bay production guidance remains unchanged at 65-75 MMscf/day (gross), considering the seasonal rainy season typically impacts demand for natural gas during Q2

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