Continental Focus, International Reach

Wentworth Relinquishes Tembo and Plans Mozambique Exit

Wednesday, December 19, 2018

Wentworth Resources intends to relinquish its holdings in Mozambique’s Tembo Block, effective April 30. The relinquishment date is ahead of the current appraisal term of June 15. In addition to giving up the block, the company also intends to exit the East African country. Wentworth will close its Maputo office and shut 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 approximately 2,500 sq km is in northeastern Mozambique, 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 as a partner holding 15%.The relinquishment of the Tembo block will release the company from any further appraisal work program 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 license 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 monetization 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 maximize 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.”