PRESS
RELEASE
16 August 2016
Wentworth
Resources Limited
("Wentworth" or
the "Company")
Q2 2016 Financial
Statements and MD&A
Wentworth Resources Limited, the
Oslo Stock Exchange (OSE: WRL) and London Stock Exchange (AIM: WRL)
listed independent, East Africa-focused oil & gas company,
today announces its results for the quarter ended 30 June 2016.
The following should be read in
conjunction with the Q2 2016 Management Discussion and Analysis and
Financial Statements which are available on the Company's updated
website at http://www.wentworthresources.com.
Q2 2016
HIGHLIGHTS
Financial
-
Gas sales revenue of $3.43 million for the
quarter, compared to $0.29 million in Q2
2015.
-
Net loss for the quarter of $0.17 million,
compared to a net loss of $1.81 million in Q2 2015.
-
Exploration and development capital expenditures
of $2.16 million compared to $9.35 million during Q2 2015.
-
Commenced repayment of existing debt facility
with $1.0m principal repayment during Q2 2016.
-
Increase in cash and cash equivalents to $6.29
million at June 30, 2016 from $2.75 million on hand at December 31,
2015.
-
June 30, 2016 working capital was $7.28 million
compared to $11.98 million at December 31, 2015.
Operational
Tanzania
-
Achieved average gross daily gas production for
the second quarter of 51 MMscf/d compared to first quarter
production of 48 MMscf/d.
-
Installation of remaining components of
permanent field infrastructure was ongoing during Q2 2016 and is
expected to be completed by the end of Q4 2016.
Mozambique
-
Received Mozambique Government approval of a
two-year appraisal program for the Tembo gas discovery and
increasing Wentworth's participation interest in the Tembo
appraisal area of the Rovuma Onshore Block from 11.59 per cent to
85 per cent. Wentworth has been appointed Operator.
-
Commenced reprocessing existing 2D seismic data
over the Tembo appraisal area as the first step in appraising the
discovery.
-
Preliminary evaluation of the Tembo-1 well
results and the regional seismic evaluation suggests the
possibility of a substantial hydrocarbon accumulation.
Geoff Bury,
Managing Director, commented:
"In Tanzania,
Wentworth has seen significant growth in gas sales since the start
of operation of the new pipeline in August 2015. This provides the
Company with consistent cash flow to fund our ongoing activities,
service our debt facility and to build cash reserves. As we
continue to strengthen our balance sheet, we look forward to
growing the Company without having to rely on the equity markets to
do so.
We are extremely
pleased to have reached an agreement with the Government of
Mozambique to increase our participating interest to 85% in the
Onshore Rovuma Block, to be appointed Operator of the block and to
have agreed an appraisal plan for the Tembo discovery. This expands
our portfolio in the Rovuma Basin, a region that has recently seen
significant interest from super-majors and national oil companies.
As operator of this concession we have the ability to match the
timing of the appraisal activities to our available cashflow and
with our increased interest we have the flexibility to seek
industry partners to participate in this appraisal plan."
Enquiries: |
|
|
|
|
|
Wentworth |
Lance
Mierendorf,
Chief Financial Officer
|
lance.mierendorf@wentworthresources.com
+1 403 680 8773 |
|
Katherine
Roe
Vice President Corporate Development & Investor
Relations
|
katherine.roe@wentworthresources.com
+44 7841 087 230 |
Swedbank First Securities |
Broker (Norway) |
+47 23 23
80 00 |
|
Ove
Gusevik |
|
|
Jarand
Lønne
|
|
Crux Advisers |
Investor Relations Adviser
(Norway) |
+47 909 808 48 |
|
Jan
Petter Stiff |
|
|
Carl
Bachke
|
|
Stifel Nicolaus Europe Limited |
AIM Nominated Adviser and Broker (UK) |
+44 (0)
20 7710 7600 |
|
Callum
Stewart |
|
|
Ashton
Clanfield
|
|
FirstEnergy Capital |
Broker (UK) |
+44 (0)
20 7448 0200 |
|
Hugh
Sanderson
|
|
FTI Consulting |
Investor Relations Adviser (UK) |
wentworth@fticonsulting.com
+44 (0) 20 3727 1000 |
|
Edward
Westropp
Tom Hufton |
|
|
|
|
Financial
Statements
The following primary statements
have been extracted from the Q2 2016 unaudited consolidated
financial statements which are located on the Company's website at
www.wentworthresources.com.
WENTWORTH RESOURCES
LIMITED
Unaudited Condensed Consolidated Interim Statement
of Financial Position
United States $000s, unless otherwise stated
|
June 30,
2016 |
December 31,
2015 |
ASSETS |
|
|
Current assets |
|
|
Cash and
cash equivalents |
6,285 |
2,746 |
Trade and
other receivables |
5,205 |
3,253 |
Prepayments, deposits and advances to partners |
257 |
841 |
Current
portion of long-term receivables |
15,024 |
18,190 |
|
26,771 |
25,030 |
Non-current assets |
|
|
Long-term
receivables |
18,423 |
18,897 |
Exploration and evaluation assets |
44,253 |
43,141 |
Property,
plant and equipment |
94,576 |
95,168 |
Deferred
tax asset |
33,962 |
34,341 |
|
191,214 |
191,547 |
Total assets |
217,985 |
216,577 |
|
|
|
LIABILITIES |
|
|
Current liabilities |
|
|
Trade and
other payables |
9,790 |
6,269 |
Current
portion of long-term loans |
8,595 |
5,270 |
Current
portion of other liability |
1,108 |
1,508 |
|
19,493 |
13,047 |
Non-current liabilities |
|
|
Long-term
loans |
16,225 |
20,512 |
Other
liability |
1,504 |
1,634 |
Decommissioning provision |
1,067 |
973 |
|
18,796 |
23,119 |
Equity |
|
|
Share
capital |
411,493 |
411,493 |
Equity
reserve |
26,047 |
25,683 |
Accumulated deficit |
(257,844) |
(256,765) |
|
179,696 |
180,411 |
Total liabilities and equity |
217,985 |
216,577 |
|
|
|
WENTWORTH RESOURCES
LIMITED
Unaudited Condensed Consolidated Interim Statement
of Comprehensive Loss
United States $000s, unless otherwise stated
|
Three months
ended June 30, |
Six months ended
June 30, |
|
2016 |
2015 |
2016 |
2015 |
|
|
|
|
|
Total revenue |
3,430 |
292 |
6,636 |
564 |
|
|
|
|
|
Operating expenses |
|
|
|
|
Production and operating |
(773) |
(1,389) |
(1,670) |
(1,893) |
General
and administrative |
(1,556) |
(1,356) |
(3,068) |
(2,853) |
Depreciation and depletion |
(1,189) |
(122) |
(2,303) |
(228) |
Share
based compensation |
(136) |
(152) |
(364) |
(458) |
Loss from operating activities |
(224) |
(2,727) |
(769) |
(4,868) |
|
|
|
|
|
Finance
income |
1,072 |
1,387 |
2,339 |
2,694 |
Finance
costs |
(1,062) |
(472) |
(2,270) |
(2,354) |
|
|
|
|
|
Loss before tax |
(214) |
(1,812) |
(700) |
(4,528) |
|
|
|
|
|
Deferred tax recovery/(expense) |
40 |
- |
(379) |
- |
|
|
|
|
|
Net loss and comprehensive loss |
(174) |
(1,812) |
(1,079) |
(4,528) |
|
|
|
|
|
Net loss per ordinary share |
|
|
|
|
Basic and
diluted (US$/share) |
(0.00) |
(0.01) |
(0.01) |
(0.03) |
WENTWORTH RESOURCES
LIMITED
Unaudited Condensed Consolidated Interim Statement
of Changes in Equity
United States $000s, unless otherwise stated
|
Number of shares |
Share capital |
Equity reserve |
Accumulated deficit |
Total equity |
|
|
$ |
$ |
$ |
$ |
|
|
|
|
|
|
Balance
at December 31, 2014 |
154,122,700 |
404,225 |
24,916 |
(283,799) |
145,342 |
Net loss
and comprehensive loss |
- |
- |
- |
(4,528) |
(4,528) |
Share
based compensation |
- |
- |
458 |
- |
458 |
Balance
at June 30, 2015 |
154,122,700 |
404,225 |
25,374 |
(288,327) |
141,272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at December 31, 2015 |
169,534,969 |
411,493 |
25,683 |
(256,765) |
180,411 |
Net loss
and comprehensive loss |
- |
- |
- |
(1,079) |
(1,079) |
Share
based compensation |
- |
- |
364 |
- |
364 |
Balance at June 30, 2016 |
169,534,969 |
411,493 |
26,047 |
(257,844) |
179,696 |
|
|
|
|
|
|
WENTWORTH RESOURCES
LIMITED
Unaudited Condensed Consolidated Interim Statement
of Cash Flows
United States $000s, unless otherwise stated
|
Three months
ended June 30, |
Six months ended
June 30, |
|
2016 |
2015 |
2016 |
2015 |
Operating activities |
|
|
|
|
Net loss
for the period |
(174) |
(1,812) |
(1,079) |
(4,528) |
Adjustments for: |
|
|
|
|
Depreciation and depletion |
1,189 |
122 |
2,303 |
228 |
Finance
income, net |
(10) |
(915) |
(69) |
(340) |
Deferred
tax (recovery)/expense |
(40) |
- |
379 |
- |
Share
based compensation |
136 |
152 |
364 |
458 |
Change in
non-cash working capital |
(88) |
2,448 |
(1,027) |
2,378 |
Net cash generated from/(utilized in) operating
activities |
1,013 |
(5) |
871 |
(1,804) |
|
|
|
|
|
Investing activities |
|
|
|
|
Acquisitions of evaluation and exploration assets |
- |
(1,355) |
- |
(7,152) |
Acquisitions of property, plant and equipment |
(9) |
(4,138) |
(9) |
(7,400) |
Reductions of/(additions to) long-term receivable |
2,699 |
(829) |
5,295 |
(1,504) |
Net cash from/(used in) investing activities |
2,690 |
(6,322) |
5,286 |
(16,056) |
|
|
|
|
|
Financing activities |
|
|
|
|
Repayment
of long-term loan |
(1,000) |
- |
(1,000) |
- |
Proceeds
from long-term loan |
- |
4,359 |
- |
14,839 |
Interest
paid |
(251) |
(242) |
(1,024) |
(242) |
Payment
of other liability |
(221) |
- |
(594) |
- |
Net cash (used in)/from financing activities |
(1,472) |
4,117 |
(2,618) |
14,597 |
|
|
|
|
|
|
|
|
|
|
Net
change in cash and cash equivalents |
2,231 |
(2,210) |
3,539 |
(3,263) |
Cash and
cash equivalents, beginning of the period |
4,054 |
4,434 |
2,746 |
5,487 |
Cash and cash equivalents, end of the period |
6,285 |
2,224 |
6,285 |
2,224 |
About Wentworth
Resources
Wentworth Resources is a publicly
traded (OSE:WRL, AIM:WRL), independent oil & gas company with:
natural gas production; exploration and appraisal opportunities;
and large-scale gas monetisation initiatives, all in the Rovuma
Delta Basin of coastal southern Tanzania and northern
Mozambique.
Cautionary note
regarding forward-looking statements
This press release may contain
certain forward-looking information. The words "expect",
"anticipate", believe", "estimate", "may", "will", "should",
"intend", "forecast", "plan", and similar expressions are used to
identify forward looking information.
The forward-looking statements
contained in this press release are based on management's beliefs,
estimates and opinions on the date the statements are made in light
of management's experience, current conditions and expected future
development in the areas in which Wentworth is currently active and
other factors management believes are appropriate in the
circumstances. Wentworth undertakes no obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless required by applicable law.
Readers are cautioned not to place
undue reliance on forward-looking information. By their nature,
forward-looking statements are subject to numerous assumptions,
risks and uncertainties that contribute to the possibility that the
predicted outcome will not occur, including some of which are
beyond Wentworth's control. These assumptions and risks
include, but are not limited to: the risks associated with the oil
and gas industry in general such as operational risks in
exploration, development and production, delays or changes in plans
with respect to exploration or development projects or capital
expenditures, the imprecision of resource and reserve estimates,
assumptions regarding the timing and costs relating to production
and development as well as the availability and price of labour and
equipment, volatility of and assumptions regarding commodity prices
and exchange rates, marketing and transportation risks,
environmental risks, competition, the ability to access sufficient
capital from internal and external sources and changes in
applicable law. Additionally, there are economic, political,
social and other risks inherent in carrying on business in Tanzania
and Mozambique. There can be no assurance that forward-looking
statements will prove to be accurate as actual results and future
events could vary or differ materially from those anticipated in
such statements. See Wentworth's Management's Discussion and
Analysis for the year ended December 31, 2015, available on
Wentworth's website, for further description of the risks and
uncertainties associated with Wentworth's business.
Notice
Neither the Oslo Stock Exchange nor the AIM Market of the London
Stock Exchange has reviewed this press release and neither accepts
responsibility for the adequacy or accuracy of this press
release.
This information is subject of the
disclosure requirements pursuant to section 5-12 of the Norwegian
Securities Trading Act.
2016 08 16 Press Release
Q2 2016 Financial Statements
Q2 2016 MDA
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Wentworth Resources Limited via Globenewswire
HUG#2035376
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