Page 18 - AfrOil Week 17 2021

AfrOil NEWS IN BRIEF AfrOil

Daniel McKeown, Managing Director of Azi- and flowed 191 barrels of oil per day of 36 degree an annualised basis). Strong and resilient finan-
nam South Africa Limited, commented: “With API oil from a 10-metre sandstone interval at cial performance against a challenging mac-
the support of SeaPulse, a Seacrest and Robert about 3,250 metres. The 686-square km 2013 3D ro-economic backdrop. Revenues of $18.9mn
Friedland-backed vehicle, ASAL is positioned seismic data confirmed the up-dip prospectivity (2019: $18.6mn), underpinned by long-term
to deliver the first major oil production offshore of the A-J1 discovery and significant further pro- fixed gas price contracts. Adjusted earnings
South Africa. With A-J1 having flowed oil to sur- spectivity up to a total of 1bn barrels of oil on the before interest, taxes, depreciation, amortisa-
face and with the benefit of a significant database Block 2B licence area. tion and exploration (EBITDAX) of $9.7mn
of well and modern seismic information, Azi- Azinam, April 21 2021 (2018: $8.8mn). Debt free with cash on hand of
nam believes that Block 2B has the potential to $17.8mn at December 31, 2020. TPDC contin-
provide South Africa with its first major offshore ues to remain fully current with all invoices for
oil production. This transaction will allow for a PERFORMANCE gas sales.
well to be drilled to test the wider potential of Operational: Production averaged 65.5 mcf
the A-J1 discovery. Azinam and its partners are Tanzania-focused Wentworth per day (2019: 70.3 mcf per day), lower due to
targeting 349mn barrels of oil (Best Estimate of fluctuating demand but in line with guidance of
Prospective Resources).” Resources announces final 60-70 mcf per day. Capacity from existing wells
Paul Murray, Director of Azinam Group, and production facilities increased to in excess of
commented: “In 1988, the A-J1 well offshore results for 2020 100 mcf per day. Low operational cost of produc-
South Africa encountered significant quantities tion of $0.69 per mcf. Wentworth’s share of Gross
of oil in 150-metre water depth and only 25km AIM-listed Wentworth, the independent, 2P Reserves as at December 31, 2020, estimated
from shore. With the benefit of new 3D seismic, Tanzania-focused natural gas producer, has by RPS to be 90.8 bcf with a post-tax NPV10 of
we can see that A-J1 drilled the down-dip section announced its audited financial results for the $116.6mn.
of a potentially much larger oil accumulation in year ended December 31, 2020, along with its Corporate: Ongoing commitment to a pro-
a number of reservoirs. Confirmation of a sig- proposed final dividend declaration for the full gressive capital returns policy. Tanzania-focused
nificant oil field on Block 2B, in a benign ocean year 2020. growth continues to be a key focus to capitalise
setting and close to shore, represents a significant Health and Safety: The health and safety of on existing operational track record. Continued
opportunity for the Republic of South Africa our people, partners and local communities process of Board refreshment, with Bob McBean
and the Block 2B licence holders to deliver the remains our priority; zero fatalities in 2020 and retiring as Chairman at the AGM and John Bent-
first major oil production offshore South Africa. a Lost Time Incident Rate (LTIR) of zero for ley stepping down during the year. At least one
ASAL has significant corporate experience in the fourth year running. Robust precautionary new Non-Executive Director to be appointed
drilling offshore exploration wells to the highest measures remain in place related to COVID-19 during 2021, with the aim of bringing further
international safety and performance standards.” to ensure the ongoing safety of our staff; to date, diversity to the Board.
Block 2B is located in the Orange Basin and there have been zero reported cases of COVID- Sustainability: Ongoing ESG strategy remains
covers 3,062 square km off the west coast of 19 at Mnazi Bay a priority, with a focus on measurement and mit-
South Africa, 300 km north of Cape Town with Financial: Declaring a final dividend in igation strategies for climate-related impacts in
water depths ranging from 50 to 200 metres. Oil respect of FY 2020 of GBP0.01 per share 2021. Published inaugural Sustainability Report
was discovered and tested on the block by Soekor ($2.6mn); a total dividend distribution in respect for 2020; it addresses how we manage the
in the A-J1 borehole drilled in 1988. Thick reser- of 2020 of $3.8mn (GBP0.015 per share) repre- impacts of our business by upholding relevant
voir sandstones were intersected between 2,985 senting an increase of 27% from 2019 ($3.0mn) international standards and how we take our
metres and 3,350 metres . The well was tested and a yield of approximately 6.7% (calculated on responsibility to our stakeholders, society and
the environment seriously.
Announced membership of the UN Global
Compact, underlining our commitment to oper-
ating responsibly in line with the UN’s Ten Prin-
ciples on human rights, labour, environment and
anti-corruption and to take strategic action to
the support the UN’s Sustainable Development
Goals.
2021 Outlook: Record quarter performance
to date with average production volumes for
Q1-2021 of 84.74 mcf per day (gross) com-
pared with Q1-2020 average of 63.60 mcf per
day (gross). All-time production volume highs
at Mnazi Bay of 110.65 mcf per day, including
monthly average production of 101.85 mcf per
day (gross) during March 2021, demonstrating
the ability to supply greater than 100 mcf per
day (gross) consistently during periods of high
demand. 2021 Mnazi Bay production guidance
remains unchanged at 65-75 mcf per day (gross),
considering the seasonal rainy season typically
impacts demand for natural gas during Q2.
Wentworth Resources, April 22 2021

P18 www. NEWSBASE .com Week 17 28•April•2021