Power play: Wentworth sells Tanzania plant to focus on exploration
Wentworth sells plant for upstream funds
AIM-listed junior Wentworth Resources has sold its power plant in Tanzania for
$13.5 million to generate funds to focus on its upstream activities.
08 February 2012 09:24 GMT
Tanzanian electricity utility Tanesco is to take over the plant of which it is
the sole customer in a deal expected to close early next month.
Wentworth managing director Geoff Bury said the sale would provide the company
“with further non-dilutive capital as we look to focus on our core strategy
of exploring for hydrocarbons and developing known natural gas resources”.
He added Wentworth would remain a key supplier to the plant, along with its
partners in the Mnazi Bay concession area, Maurel Prom and state-run
Tanzania Petroleum Development Corporation.
Wentworth’s finance and investor relations director Eric Fore said the deal
would also enable the company to “significantly reduce forward fixed
and variable costs associated with our Tanzanian operations”.
The Mtwara Power Plant is an 18MW gas-to-power generation facility that uses
gas from Mnazi Bay to generate electricity for Tanesco for the domestic
market.
The plant generated $5.204 million revenues in the first nine months of last
year, with assets holding a net book value of $9.426 million.
Wentworth Resources is an independent explorer listed in London and Oslo with
production, midstream and exploration assets centered on the Rovuma Delta
Basin of southern Tanzania and northern Mozambique.