Wentworth Resources, the East Africa-focused oil and gas company, is set to boost its interest in the Mnazi Bay concession, offshore Tanzania, through a swap deal with Cove Energy.
The transaction will see Wentworth terminate its 4.95% royalty interest from Cove's share in the Rovuma Area 1 Concession.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The total value of the transaction is approximately $38.8m.
Following completion Wentworth will hold a 41.78% interest in Mnazi Bay, Maure & Prom will hold 38.22% and the Tanzania Petroleum Development Corporation 20%.
The Executive Chairman of Wentworth, Bob McBean, says the transaction is a boon to both Cove and his own firm, describing it as a "win situation for both parties".
News of the deal saw Wentworth's shares gain 0.9% by 10:39.
BS
-
5 alternatives to Reeves’ inheritance tax raid on rural Britain as families face ‘splitting up or selling’ farmsInheritance tax limits are now so low they attack small working family farms rather than just going after tax loopholes, one Cotswolds farmer has said
-
High earners at risk of £65k retirement shockHigh earners could face some of the biggest pension shortfalls when they retire, as the cost of maintaining an expensive lifestyle could erode their retirement savings
