Wentworth Resources has announced that further to its announcement dated 3 October 2018, it intends to relinquish the Tembo block with a planned effective date of 30 April 2019 ahead of the end of the current appraisal term on 15 June 2019. The Company will also exit Mozambique, closing its Maputo office and shutting down activities in the Muxara and Palma camps concurrently, in order to focus on its core Mnazi Bay asset in Tanzania and its M&A led growth mandate.
The Tembo Block, which has an area of approx. 2,500 km2 is in northeastern Mozambique, approx. 2,598 km north of Maputo and 120 km southwest of the Mnazi Bay field, in the onshore Rovuma Basin. The block is operated by Wentworth Resources (85%) with Empresa Nacional de Hidrocarbonetos (‘ENH’; 15%) as a partner.
The relinquishment of the Tembo block will release the Company from any further appraisal work programme obligations with no material costs foreseen ahead of relinquishment. It is anticipated that the Company’s Intangible Assets which are attributable to the Tembo appraisal licence will be written down in full in the current financial year 2018.
Eskil Jersing, CEO, commented:
‘We have now completed a thorough technical and commercial review of the company’s asset portfolio and determined that our Tembo asset does not provide us with suitable monetisation solutions in keeping with our material growth mandate. We have appreciated the excellent relationships to date with ENH, the National Oil Company of Mozambique, and INP, the National Regulator, and will work hard to ensure an efficient and smooth transition period for all stakeholders. Our work both to maximise the potential of Mnazi Bay and to identify M&A opportunities to add material value continues apace and we look forward to updating shareholders on our progress in due course.’
Source: Wentworth Resources