Wentworth announces Cove Energy Tanzania purchase

Wentworth acquire Mnazi Bay from CoveWentworth Resources has acquired Cove Energy's stake in the Mnazi Bay Concession, Tanzania. (Image source: Paul Mcgreevy)East Africa oil and gas company Wentworth Resources Limited has announced its purchase of Cove Energy’s participation interest in Tanzania’s south-eastern Mnazi Bay Concession, following approval from the Tanzanian government 

According to the agreement between the two oil firms, Wentworth is set to acquire Cove Energy Tanzania Mnazi Bay Limited’s (CETMBL) stake in the Mnazi Bay Concession.

Wentworth executive chair Bob McBean said, “We are extremely pleased to receive final government approval to close these important transactions.

“These activities are designed to increase our resource base and position Wentworth to become a significant gas producer in Tanzania.” 

In exchange Wentworth will provide Cove with two million shares in the company and up to US$8.5 million; the latter dependent on whether Wentworth reaches any future natural gas production thresholds in Mnazi Bay.  

Due to the pre-emption rights over Cove’s participation percentage, however, Wentworth is mandated to sell approximately 60 per cent to the French oil and gas company Maurel et Prom (M&P) for an average of $18.9 million. 

Upon completion of the transaction, therefore, Wentworth will be left with a stake of just below 40 per cent. 

McBean noted, “We will continue to work with our partners, M&P and TPDC [Tazania Petroleum Development Corporation], to further the exploration and development of the Mnazi Bay Concession.”

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