(AOF) – Wentworth Resources plc and Maurel & Prom (M&P) have reached agreement on the terms of a recommended acquisition of all of the issued and to be issued share capital of Wentworth by M&P. Under the terms of the acquisition, Wentworth shareholders will be entitled to receive £32.5p in cash, representing a premium of around 30% to the closing price of £25p on December 2, 2022. The acquisition values Wentworth at around £61.7 million.
Wentworth’s sole (non-cash) asset is its non-operated 31.94% (direct and indirect) interest in the Mnazi Bay gas asset in Tanzania. As the majority owner and operator of the Mnazi Bay gas asset, M&P has a good knowledge and understanding of the value of the Mnazi Bay asset and, therefore, of Wentworth. As partners in this asset, M&P and Wentworth have had an existing relationship for several years.
The acquisition will provide Wentworth Shareholders with an immediate realization of value from their Wentworth shares in cash, at a significant premium to the market price, and the opportunity to recover this value despite the reduced liquidity of the Wentworth shares.
M&P being a partner and the operator of the Mnazi Bay asset, with existing relationships on site, this should facilitate the rapid implementation of the Acquisition and the normal continuation of activities.
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Growing global demand
The IEA (International Energy Agency) estimates that global demand should stand at 99.4 Mb/d (million barrels per day) for 2022, a level slightly revised upwards due to stronger growth. stronger than expected in March and April. However, this remains 1 Mb/d below 2019 levels. From 2023 the IEA forecasts that global oil demand should exceed pre-Covid pandemic levels, driven by Chinese demand. The latter has been strongly affected by the serious disruptions linked to Covid-19 this year. Next year, the rebound in Chinese demand will more than offset a slowdown in OECD countries. In the medium term, the strong recovery in air traffic is supporting oil demand, with an increasingly evident dynamic in air travel in Europe and North America, underlines the IEA.