12 Jul 2022 18:12
12 July 2022
WENTWORTH RESOURCES PLC("Wentworth" or the "Company")
Potential Exercise of Ruvuma Pre-Emption Rights
Wentworth Resources (AIM: WEN), the independent, Tanzania-focused natural gas production company, notes today's announcement from Scirocco Energy plc ("Scirocco") in relation to the Company's proposed acquisition of the 25% non-operated working interest in the Ruvuma Production Sharing Agreement ("Ruvuma Asset") announced on 13 June 2022 (the "Proposed Acquisition").
Scirocco announced that it has been informed by its partner ARA Petroleum Tanzania Ltd ("ARA") of its intention to exercise its pre-emption rights in relation to the Proposed Acquisition under the terms of the Joint Operating Agreement. This Pre-emption would be subject to approval by the Government of Tanzania.
In addition, Scirocco confirmed that Tanzania Petroleum Development Corporation ("TPDC"), the national oil company of Tanzania and wholly owned by the Government of Tanzania, has indicated that it is considering exercising its statutory right of first refusal in relation to the Proposed Acquisition pursuant to Section 86(5) of the Petroleum Act 2015.
Scirocco is now taking advice to understand the implications of these developments and will then enter into discussions with each party to confirm next steps.
In the event that Pre-emption does not proceed, Wentworth remains committed to the Proposed Acquisition.
No payment under the loan facility arrangement has been made to Scirocco and no consideration will be due unless the Proposed Acquisition completes.
Katherine Roe, CEO, Wentworth, said:
"The discussions regarding a potential exercise of pre-emption rights by Scirocco's partners underline the compelling economics of the transaction we constructed, which was designed to be in the best interests of our shareholders and in-country stakeholders with a focus on driving reinvestment into the Ruvuma Asset and into Tanzania.
"We will await the outcome of the pre-emption discussions and provide a further update in due course."
Ends
Enquiries:
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Wentworth Resources | Katherine Roe,Chief Executive Officer
| katherine.roe@wentplc.com+44 (0) 7841 087 230
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Stifel Nicolaus Europe Limited | AIM Nominated Adviser and Joint Broker Callum StewartAshton ClanfieldSimon Mensley
| +44 (0) 20 7710 7600 |
Peel Hunt LLP | Joint Broker Richard CrichtonAlexander Allen
| +44 (0) 20 7418 8900 |
FTI Consulting | Communications Advisor Sara Powell Ben Brewerton Ollie Mills | +44 (0) 20 3727 1000 |
About Wentworth Resources
Wentworth Resources plc (AIM: WEN) is a leading, domestic natural gas producer in Tanzania with a core producing asset at Mnazi Bay in the onshore Rovuma Basin in Southern Tanzania.
Inside Information
The information contained within this announcement is deemed by Wentworth to constitute inside information as stipulated under the Market Abuse Regulation (EU) no. 596/2014 ("MAR"). On the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.