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Wentworth dips into USD 20m credit facility to fund Tanzanian projects

04th March 2015

Wentworth Resources has taken USD 5.6m from its existing credit facility with a domestic Tanzanian bank in order to boost its capital flow and find its Mnazi Bay exploration and production programme

Wentworth Resources has taken USD 5.6m from its existing credit facility with a domestic Tanzanian bank in order to boost its capital flow and find its Mnazi Bay exploration and production programme
Wentworth expects the remaining amount of the facility to be sufficient to meet ongoing Mnazi Bay Concession development capital activities (drilling of the MB-4 development well and construction of field infrastructure tying in our existing gas fields to the government-owned pipeline infrastructure) that are planned for the first half of 2015. Source: Wentworth Resources

Wentworth Resources has drawn an amount of USD 5.6m on an existing USD 20m credit facility with a Tanzania-based bank, TIB Development Bank Limited (TIB), relating to Mnazi Bay Concession development and operating costs that were incurred and paid for by the company prior to executing the facility in December 2014.

These unrestricted funds will be used for working capital purposes and significantly improves the company's short-term liquidity. 

Wentworth expects the remaining amount of the facility to be sufficient to meet ongoing Mnazi Bay Concession development capital activities (drilling of the MB-4 development well and construction of field infrastructure tying in our existing gas fields to the government-owned pipeline infrastructure) that are planned for the first half of 2015.

"We are pleased to have TIB Development Bank as a Tanzania-based partner supporting our activities as we move towards being a key player in the oil and gas sector in Tanzania,” said Lance Mierendorf, Wentworth’s chief financial officer.

“TIB have demonstrated a high level of understanding of and commitment to Wentworth and the emerging energy industry in Tanzania. We are now in a stronger financial position as we move closer to first cash flow from sales to the new pipeline in Tanzania."

During the second half of 2015, Wentworth's share of the cost of development capital activities are expected to be funded from internally generated cash flow.

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