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HY,
I actually agree with all your points. While I do support cost cutting measures it seems premature to de-list from OSE at this stage. However, saying that, it will take months to complete the delisting, so there could be enough time to create a new market in the UK. Also, the company may decide to maintain its shareholder register in the VPS for Norwegian shareholders. What percentage of Norwegian shareholders will chose to transfer their shares out of the VPS into the UK CREST system do you think?
Did you, or anybody else from the Norwegian shareholders contact Katherine or Eskil about this? What was the response?
HY:
Has WRL ever been able to buy through aksjesparekonto? Thats new for me, at least.
Mick2020, from my point of view being an investor on OSE, I find the announcement to delist from OSE very strange. Of 186 million shares outstanding, about 118 million are registred on VPS (tradable on OSE) and about 90% of the number of trades are being made on OSE. 90% is just my estimate from looking at the number of trades lately, and could be wrong. <br />Another reason for keeping WRL on OSE is that OSE is regarded as a "regulated market" which is not the case for AIM. Many popular stock savings accounts like life and pension savings accounts and something called aksjesparkonto (stock savings account) do not allow investments in shares in unregulated markets, such as AIM. <br />This would probably lead to forced sale of about 5 million shares in WRL if the delisting on OSE were to take place. <br /><br />For those that have an account that allows for trading on unregulated markets such as AIM, it is more complicated and expensive as it requires giving orders over the phone and exchange og currency. My guess is that most Norwegian investors would leave WRL if it were to be delisted from OSE. However, I don't think Oslo Stock exchange will allow a delisting on OSE as it will leaad to a substantial difficulty in trading the share on AIM.<br />
I have mixed feeling about this. On the one hand I fully support the focus on cutting costs and simplifying the structure of the organization, on the other hand I think this could have been done in stages, to avoid reducing liquidity even further. We will certainly lose a significant number of investors in Norway, which is a shame. At the same time though, while liquidity is practically zero at AIM, it is also low in Norway, so the company needs to change something radically here. You almost wonder if they have some "other information" that we don't know yet, why they announced the delisting at this moment already.
WRL remains a medium to long term investment though, and as they have announced the plans now to delist from OSE, the damage is basically done. A drop of 8-10% from a price that is already way too low is not something that keeps me awake, especially which such low volumes.
Time to look forward now. Hopefully Monday will bring some good news already, and I expect the H1 report to build on that further. I'm also very much looking forward to Eskil's plans to grow the company. Solid numbers, growing production, some marketing from a new UK CEO and a new batch of Norwegian PI's trading on AIM, and I do expect that liquidity in London will grow soon.
I think WRL should at least show their shareholders that they are able to increase the amount of trades at AIM before they delist at OSE. Because now, I guess OSE has 90% of all trades in WRL.
Nice to see that WRL keeps cutting cost and focus on one exchange instead of two.
I think WRL is in a very good spot for the second half of the year.
To further this objective, the Company is also seeking to de-list from the Oslo Børs, which is consistent with the Company's plan to move towards a UK based corporate governance regime and is in line with the appointment of a UK based management team. The Company is confident that the AIM market provides sufficient liquidity and ease of trading for all shareholders.
The Directors are mindful that the Company's members include a number of non-institutional shareholders located in Norway and it invites shareholders, in the first instance, to engage with the Company's management should they have any questions on the aforementioned. Â Email contact details are set out at the base of this announcement.
Bob McBean, Executive Chairman, said:
"The Company is focused on moving to a simplified corporate structure and corporate governance regime that will increase liquidity, reduce overheads and allow the new UK based management team to drive the business forward. Furthermore, the benefits of being in a similar time zone to our assets and key partner Maurel et Prom, in addition to London providing a critical centre for M&A and capital solutions with respect to the African Oil and Gas industry, are well known. We believe a redomicile to Jersey and, a delisting from the Oslo Børs will help meet these objectives. We would welcome engagement with any shareholders to discuss any issues arising from the proposed changes and, of course, we will seek appropriate shareholder approval for the proposed changes before they are implemented."
Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company, provides the following corporate update.
Chief Executive Officer
Further to the Company's announcement dated 15 January 2018, Mr Eskil Jersing has today joined Wentworth as Chief Executive Officer. He will be appointed to the Board with effect from 27 June 2018 at the Company's Annual and Special Meeting.
Redomicile of the Company
As previously announced, in line with the head office relocation of the Company from Calgary to London, the re-domicile of the Company to the British Isles is progressing on schedule. Having considered various options, the Company is working towards a "Continuance" of the Company into Jersey, Channel Islands (the "Continuance"). Â
The Continuance is a legal process whereby, following shareholder approval by way of a special resolution, the Board of the Company will apply to:
The Registrar of Corporations in Alberta to grant a certificate of discontinuance; and
The Jersey Financial Services Commission for their approval of the Continuance.
Upon such approval:
The Company will cease to be a company registered in Alberta, Canada and will be registered in Jersey, Channel Islands;
Shareholders will continue to hold one share of the Company for each Common Share currently held. The principal attributes of the share capital of the Company will be identical, before and after the Continuance, other than differences in shareholders' rights under the new Articles and under Jersey law as compared to the current articles and Albertan law;
The Company will adopt a new Memorandum of Association and Articles of Association (the "Articles");
The Company's shares are expected to continue to be traded on AIM and the Oslo Børs; (with an Oslo Børs delisting application being submitted shortly thereafter); and
All property and rights to which the Company was entitled immediately before the Continuance will remain the property and rights of the Company post Continuance and the Company will remain subject to all criminal and civil liabilities, all contracts, debts and other obligations and all legal proceedings, to which it was subject immediately before the Continuance.
Full details of the Continuance process and its implications will be provided, in due course, in a Continuance Circular.
Delisting from Oslo Børs
The intent behind the redomicile is to reduce costs and simplify the Company's corporate structure. The Board believes the redomicile process will provide a positive long-term benefit for all of its shareholders and improve the overall liquidity and risk profile of the stock.
To further this objective, the Company is also seeking to de-list from the Oslo Børs, which is consistent with the Company's plan to move towards a UK based corporate governance regime and is in line with the appointment of a UK based management team. The Company is confident that the AIM mar
Fully agree crudetrader! It will be interesting to watch when trading springs back to life. Production will grow a lot further in the comng months (130 MMscf/d this time next year?), and with money coming in consistently, it is only a matter of time I would say!
I think Wentworth is one of the most overlooked E&Ps on AIM/LSE. The development of the asset was slow, and the ramp up was slow and payments were slow. All these factors seem to have resulted in that investor lost interest in the stock. But I think now that the stock is very interesting due to a few reasons: First, production so far in 2018 is outperforming guidance. Secondly, payments have been more consistent in 2018. Which has resulted in a rapidly improved balance sheet. The company should be net debt free during 2018. Thirdly, there seems to be more demand for gas in the next 12 month which could support an increase in production guidance. The stock is now where cheap on cash flow to enterprise value multiples and other metrics. Furthermore, the company has moved the management from Calgary to London to reduce cost. I think this process has unintentionally resulted in that the company has not been out meeting investor much, the past 6 months. As the CEO and CFO left the company when the office move was decided. The stock isnt moving much but investors will eventually recognize that it's among the cheapest E&P on AIM/LSE.
News from North of Mozambique in the local Newspaper today (in portuguese): http://www.jornalnoticias.co.mz/index.php/2018-05-04-10-20-41/78368-ataque-a-aldeias-em-cabo-delgado-governo-preocupado-em-normalizar-a-vida
Wentworth Resources Limited : Mozambique Update - License Extension Granted PRESS RELEASE 6 June 2018 WENTWORTH RESOURCES LIMITED (Wentworth or the Company) Mozambique update: License Extension granted Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil&gas company, is pleased to announce an update to the Companys Onshore Rovuma asset in Mozambique (Appraisal License). Further to the update at the time of the 2017 Annual Financial Statements in March regarding the Companys formal request of a one-year extension of the Appraisal License, the Company has received confirmation from Instituto Nacional de Petroleo (INP) that the extension has been granted. The extension will take effect from 16 June 2018 and enables Wentworth, along with its partner Empresa Nacional de Hidrocarbonetos (ENH), to continue to progress pre-drilling activities in the Tembo block. The extension request was in part related to the above ground security situation in and around the Macimboa da Praia and Palma regions, adjacent to the Tembo block, which remain challenging. This has prevented safe access to the area for Wentworth staff and contractors. The Company continues to monitor the situation closely. Bob McBean, Executive Chairman, said: We would like to thank the Minister, INP and our partner ENH for their support in securing this extension to the Tembo licence, which gives us the time and flexibility to progress our operational activities on the block. We remain focused on securing an additional partner to share risk in unlocking the onshore potential of the Rovuma basin.
Vike, WRL has repeatedly said that they will only drill a well in Mozambique if they secure a farm out, so I think the risk of “throwing good money after bad” is pretty remote... in fact, I think the chance that the company will get a free carry in MZ is much greater. But in addition to that, with payments improving and demand growing quickly in Tanzania, it becomes more attractive again to spend money on further developing Mnazi Bay. Personally, I find the offshore / near shore areas far more appealing from a geological standpoint, and there are plenty of appraisal / exploration opportunities left in Mnazi Bay. I hope that the planned Mnazi Bay well interventions will be brought forward to Q4 / Q1 next year (increasing we’ll potential to 130 MMscf/d) and that MB-5 will also be drilled some time next year. Good chance that MB-5 will be better than expected (as MB-4 was) and that the wells can then deliver rates well beyond 130 MMscf/d.... Exciting times ahead in any case! :-)
Good showing! Nice flows and payment received on time, especially impressive during the rainy season when the country tends to favour electricity from hydro. The new guy coming in will be inheriting a much better story than if he joined a couple years ago. Now the trick is to avoid throwing good money after bad in MZ.
Very good news again! The impact of the rainy season seems to be minimal this year, and with increasing production rates in the coming months it would not surprise me if WRL will receive payments of around 36 million in total this year! Wow! :-)
Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company, today provides an update to shareholders. The Company is pleased to inform shareholders that payments received during May 2018 for gas sales generated from the Mnazi Bay Concession in Tanzania totalled $2.7 million net to Wentworth. Payments were received from both Tanzania Petroleum Development Corporation ("TPDC") and Tanzania Electric Supply Company Limited ("Tanesco") for one month's gas sales and two month's gas sales respectively. The Company is also pleased to report that gross production volumes during May 2018 from the Mnazi Bay gas field averaged 79 MMscf/d.
Thanks Alph, interesting information. So Tainton and Ntomola are running the office in Tanzania then (and Mozambique I guess). Pretty expensive guys I have to say, especially Tainton. I wonder if Gerald Fong (VP exploration) is still on the payroll. But overall, with Bury and Mierendorf leaving and only Jersing joining, G&A costs will hopefully come down further this year.
For what its worth - from his own Linked In profile: Responsibilities included the following: � Management of Country Office and operations all activities in Tanzania and Mozambique � Reporting directly to the Managing Director and the Executive Chairman in London, UK � Manage and supervise the Company's operations in both countries: Tanzania and Mozambique � Key company representative in negotiations and liaison with Governments of Tanzania and Mozambique � Company Representative at Technical (TCMs) and Operational Committee Meetings (OCMs) � Support the control environment by monitoring and managing in country costs. � Foster good relationships with partners and Government stakeholders in both Countries Main achievements to date: � Played key role in acquiring a 2-year Appraisal Program for Rovuma Onshore Concession in Mozambique � Established new office in Maputo, Mozambique: i.e. staffing, business licenses, banking, etc. � Brought gas to first production and revenues, after being stranded for 8 years in Tanzania � Negotiated Gas Sales Agreement (the first in 10 years) signed with the Government of Tanzania � Key negotiator in validating the inclusion of over $120 million cost pool items originally rejected the Nation Oil Company (TPDC). � Co-ordinated seismic tender preparations and scouting operations. � Worked with National Environmental Agency METADER in Mozambique to obtain Environmental License approvals for Wentworth � Co-ordinated procurement process for Drilling Rig, Casing and Tubing and Well Head in Mozambique � Continue to develop strong relationships with Government of Mozambique Institutions such as INP, ENH, Police and Army. � Played key role in negotiating the re-scheduling of Lender finance payments against the back-drop of a looming cash flow squeeze � Played key role in negotiating payment of arrears and receivables from Government owned enterprises for the supply of natural gas
Reading the AGM announcement from yesterday afternoon (why issued so late?? always makes me suspicious....), I was very surprised to read that the highest paid �executive officer� last year was Richard Tainton, with a total compensation worth more than US$ 438k. A very impressive salary.... especially since i hardly heard about him. Does anybody else know what he is actually doing? https://www.wentworthresources.com/pdf/2018%20WRL%20Information%20Circular%20v7%20FINAL.pdf
Found this link at Norwegian forum. Pretty interesting reading:) https://simplywall.st/stocks/no/energy/ob-wrl/wentworth-resources-shares
part two "Aminex will expand production of the Kilwani gas field, it says in its updates, and put the newly discovered Ntorya field into production. �Existing plant and gas sales agreements have sufficient capacity to permit rapid integration of any future Kiliwani discoveries�, the company reports. Orca is hoping to finalise Gas Sales agreement with TPDC and increase its production from Songo Songo. The Company has also identified and is developing additional markets among existing industrial customers, new industry and Government gas-fired power generation which, based on current forecasts, has the potential to contract for sale all of the existing and potential new productive capacity of the Songo Songo field to the end of the license. Orca�s subsidiary, Pan Africa Exploration, operates three wells, two of which are in production (SS-10 and SS-11) and one of which is not (SS-12 requires platform and flowlines). Including the Songas wells, current production capacity is 155 MMscf/d which can be increased to 180 MMscfd/ once SS-12 is tied into the country�s main gas infrastructure network. *The Production Sharing Agreement (PSA) between Orca Petroleum, the Tanzanian Petroleum Development Company (TPDC) and the Government of Tanzania defines the gas produced from the Songo Songo field as �Protected Gas� and �Additional Gas�. Under the terms of the Gas Agreement, TPDC has assigned its rights to sell or otherwise dispose of the Protected Gas to Songas Limited. Songas utilizes the Protected Gas as feedstock for projects it has designated to supply gas. **The projects discussed in this article are all entirely onshore and shallow water and outside the deep water licences, which reportedly hold over 45Tcf, and have been subject of so much debate about Tanzania�s export potential."
I found this article on the Norwegian WRL forum, posted by the signature alph. As I think it was worth reading, I post it here as well. The production number for KN1 at 10 mmscf/d is not up to date. Current production is about 0.7 mmscf/d, I think. http://africaoilgasreport.com/tag/featured/ Electricity increase will creep, and the country will slowly expand the current 160MMscf/d domestic market�. There are three development licences on the Tanzanian hydrocarbon concession map. The Songo Songo, Kilwani North and Mnazi Bay licences, are all gas producers, collectively outputting around 160Million standard cubic feet of gas per day (160MMscf/d). The Orca Exploration operated shallow offshore Songo Songo gas field produces 70MMscf/d (comprising both the Protected Gas and the Additional Gas*). The Kilwani North project, operated by Aminex, averages 10MMscf/d. The Maurel et Prom led Mnazi Bay project delivers 80MMscf/d. These three projects, which are in onshore and shallow water terrains**, supply gas to seven power plants and several industrial customers. Given the government�s published plans for more gas fired electricity plants, it would be easy to assume that the natural gas demand will surge. That is what Orca, Aminex and Mauriel et Prom and its partners are hoping for. �The Government of Tanzania intends to increase the installed power generation capacity from 1,583MW to 10,000MW by 2025�, Orca wrote in a report released in 2017, citing the Tanzanian Power System Master Plan 2016 and the Electricity Supply Industry Reform Strategy 2014(updated in 2016). �4,000MW of the increased capacity will be attained through the installation of new gas powered plants�. Last year, Maurel et Prom and Partners in the Mnazi Bay project published a list of pending power plants and industries whose �imminent gas demand� are expected to boost the project�s supply to 300MMscf/d by end of 2019. It is close to mid-2018. And 2025 is just seven years away. True, some of those plants are up and running, even at optimum. The Kinyerezi-1 power station operated at near full capacity during the second half of 2017 and the Kinyerezi-2 commenced commissioning during Q4 2017. But overall, the Government�s estimates that the total power demand will increase by 8% per annum is not being converted to actual market activity. By its own admission, the completion dates for five near term planned Gas Powered Plants, expected to consume 294MMscf/d to generate 1,376MW, �are likely to slip, given the size and financial commitments required to complete the projects,� Orca reports. What�s clear is that Tanzania, unlike South Africa, Egypt and, to a lesser extent, Nigeria, does not bear an acute hunger to be an industrial economy. And yet these companies �see� opportunities in the Tanzanian energy ecosystem.
Tanzania starts connecting key industries to natural gas DAR ES SALAAM, May 16 (Xinhua) -- The government of Tanzania is implementing a project to connect key industries in the commercial capital Dar es Salaam with natural gas as source of energy, reducing dependence on erratic electricity. Subira Mgalu, Deputy Minister for Energy, told the National Assembly on Wednesday in the capital Dodoma that the project was being implemented by the government's petroleum watchdog--the Tanzania Petroleum Development Corporation (TPDC). "The plan is to reduce dependence of electricity as the only source of power for production by the industries," said Mgalu, adding that some of the industries that have started the process to use natural gas were Bahkresa Industries, producers of juices, and Coca-Cola Kwanza. The official made the remarks as Tanzanian President John Magufuli has promised to turn the country into a middle income industrial economy by 2025. Here's a link to the article: http://www.xinhuanet.com/english/2018-05/17/c_137184370.htm
What a shame Mick, always good to meet the Man or Woman behind the keyboard for a tipple.