Wentworth Resources said the farm-out process for its Tembo-1 appraisal asset in northern Mozambique was now underway.
The analysis of the results from the Tembo-1 discovery well and interpretation of the existing seismic data were now complete.
The company was continuing to advance its appraisal programme and was looking to secure an industry partner to participate in an appraisal well, which was planned for Q2 2018.
"The company has identified a number of potential drilling locations and has commenced pre-planning work for the appraisal well," it said.
Wentworth's internal assessment of the prospective resource estimate for the Tembo Structure was 1.7 Tcf (unrisked P50).
It said significant oil shows in the Tembo-1 discovery well also suggested the potential for an oil case of 219 MMbbls (unrisked P50).
"There is further significant upside potential in the 2,500 sq. km. Tembo Block which is not included in these prospective resource numbers."
Wentworth had an 85% working interest in the Tembo Block and felt confident that it would be able to secure an industry partner to participate in this appraisal programme.
"We will continue to update the market as material developments on this asset occur."
In relation to Wentworth's Mnazi Bay asset in Tanzania, Tanzania Petroleum Development Corp (TPDC) and Tanzania Electric Supply Company Ltd (TANESCO) had recently paid monthly invoices totalling $1m net to Wentworth for gas sales.
The Mnazi Bay Partners continued to work closely with the Government of Tanzania to settle all outstanding invoices.
As part of our Gas Sales Agreement with TPDC, payment guarantees are in place which can be utilised, if deemed necessary, should payments from TPDC become excessively delayed.
Other positive developments include an increase in daily production volumes since the end of the rainy season and we maintain our guidance for the year of 40 - 50 MMscf/d.