Maurel & Prom to acquire Wentworth Resources
Maurel & Prom (M&P) has reached an agreement to acquire Tanzania-focused Wentworth Resources, Wentworth said on December 5. The deal values Wentworth at approx. £61.7mn.
Wentworth shareholders will receive 32.5 pence/share. “The acquisition represents a material increase to the initial indicative offer price proposed by M&P on September 23,” the company said.
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Wentworth's sole non-cash asset is its non-operated 31.94% interest in the Mnazi Bay gas asset located onshore in the Mtwara region of southern Tanzania, which is operated by M&P.
"As the operator of the Mnazi Bay gas field, increasing our stake through the acquisition of Wentworth is a logical step and reflects our stated strategy of maximising value from existing assets,” Olivier de Langavant, CEO M&P said. “Mnazi Bay is an important project to M&P and we look forward to ensuring it continues to make a positive impact, helping Tanzania meet its increasing energy demands and enabling local development.”
The directors of Wentworth intend to recommend unanimously that Wentworth shareholders vote in favour of the M&P transaction.
“M&P is the operator and majority owner of our sole asset, Mnazi Bay, and this is a logical combination that we believe is in the best interests of our shareholders, wider stakeholders and of Tanzania,” Tim Bushell, chairman of Wentworth, said.
Wentworth earlier this year tried to buy Scirocco Energy's 25% stake in the Ruvuma PSC but project operator ARA Petroleum Tanzania triggered its pre-emptive rights.
Situated in southeast Tanzania, Ruvuma PSC is part of the Ruvuma basin that has spurred several high-profile gas discoveries in neighbouring Mozambique. The licence area contains ARA's flagship gas and condensate field Ntorya, scheduled to launch 2024.