TIDMWRL
PRESS RELEASE
28 February 2017
Wentworth Resources Limited
("Wentworth" or the "Company")
Update and Q4 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 an operational update along with its
unaudited results for the fourth quarter and twelve months ended 31
December 2016.
The following should be read in conjunction with the Q4 2016 Management
Discussion and Analysis ("MD&A") and Condensed Consolidated Interim
Financial Statements which are available on the Company's updated
website at http://www.wentworthresources.com.
Wentworth shall be issuing its audited 2016 Annual Consolidated
Financial Statements and MD&A following publication of the results of an
annual independent evaluation of the gas reserves at 31 December 2016
within the Mnazi Bay Concession in Tanzania, carried out by RPS Energy
Canada Ltd. ("RPS"), Calgary, Canada which is expected during March
2017.
OPERATIONAL AND FINANCIAL UPDATE
-- Mnazi Bay field production has averaged 44 MMscf/d year-to-date 2017, in
line with guidance of 40 - 50 MMscf/d for 2017.
-- In addition, increasing gas demand from industrial customers, including
Goodwill Ceramics and Dangote Cement, is expected in 2017.
-- Kinyerezi-I Expansion and Kinyerezi-II gas-fired power generation
facilities are under construction and on schedule for completion and
commission starting in 2018; anticipated additional demand from power
sector of 70 - 80 MMscf/d once these new facilities are fully
operational.
-- All capital and operating expenditures incurred during 2016 expected to
be fully settled during Q1 2017; minimal capital expenditure planned
during 2017.
-- Production facilities now fully invested with capacity of up to 130
MMscf/d and current well deliverability expected to support substantial
increase in demand.
-- Work underway to secure industry partners for the appraisal programme of
the Tembo gas discovery in Mozambique; appraisal activities expected to
commence once industry partners are secured.
-- Amended the timing of principal payments on the existing $20.0 million
credit facility to better align with the current production profile and
without further leveraging the Company at this time.
-- Secured access to a new $2.5 million overdraft facility for working
capital purposes.
Q4 2016 HIGHLIGHTS
Financial
-- Gas sales revenue of $2.73 million for the quarter, compared to $3.10
million in Q4 2015.
-- Net loss of $0.42 million during Q4 2016 compared to a profit after tax
of $32.81 million in Q4 2015,which includes a non-cash deferred tax
recovery of $34.34 million.
-- Capital expenditures of $0.67 million compared to $0.73 million during Q4
2015.
-- Cash and cash equivalents on hand of $0.98 million compared with $2.75
million on hand at December 31, 2015.
-- Working capital was $4.96 million compared to $11.98 million at December
31, 2015.
-- Reduced outstanding debt to $20.67 million following a $1.0 million
principal payment during Q4 2016 (2015 - $26.0 million).
Operational
Tanzania
-- The Mnazi Bay field achieved average gross daily gas production during
the fourth quarter of 39.4 MMscf/d compared to 34.3 MMscf/d during Q3
2016 as less downtime was experienced at the gas fired power generation
facilities, Ubungo-II and Kinyerezi-I power stations.
-- Expansion of the liquid separation units and gas processing facilities at
Mnazi Bay was ongoing during Q4 2016 with commissioning and full
operations expected in Q2 2017.
Mozambique
-- Completed reprocessing of approximately 1,000 km of 1984/1985 vibroseis
data which represents all of the existing regional seismic coverage over
the Tembo appraisal area.
-- Finalized the design details of a new 2D seismic survey of approximately
700 km of new data.
Geoff Bury, Managing Director, commented:
"Fourth quarter gas sales volumes were in line with our guidance of 40
and 50 MMscf/d and we remain confident this level is achievable for
2017, as we anticipate new demand from a local cement factory and a
ceramics facility. We expect a material increase in gas demand
beginning in 2018 when the new Kinyerezi-I expansion and Kinyerezi-II
power plants are commissioned. The Company has taken prudent steps in
order to reduce administrative and overhead costs coinciding with the
reduction in capital activity expected in 2017. During the quarter we
have also had productive discussions with our external lenders, amending
the timing of principal payments on the existing $20.0 million facility,
to better align repayments with the current production profile. We are
confident in the Company's ability to generate positive cashflow at the
existing production levels, allowing any upside in demand during 2017 to
directly benefit the bottom line."
"The Company is focused on advancing a new 2D seismic acquisition
program over the Tembo appraisal area in Mozambique and will be looking
to secure an industry partner to share the costs and risk on the
appraisal of the gas discovery."
"We enter 2017 with a positive outlook and with a business which is well
positioned to take full advantage of the growing gas to power energy
sector in Tanzania."
A conference call for investors, analysts and other interested parties
will be held this morning at 01:30 MST (Calgary) / 08:30 GMT (London) /
09:30 CET (Oslo). Call in numbers:
Call in numbers:
Canada: +1 647 484 0480
Norway: +47 2350 0296
United States: +1 719 457 2086
International/ United Kingdom Dial In: +44 (0)330 336 9411
The participants will be asked for their name, company and confirmation
code. The Wentworth Resources confirmation code is: 3878585.
Enquiries:
Lance Mierendorf, lance.mierendorf@wentworthresources.com
Wentworth Chief Financial Officer +1 403 680 8773
Katherine Roe katherine.roe@wentworthresources.com
Vice President Corporate Development & Investor Relations +44 7841 087 230
Crux Investor Relations Adviser
Advisers (Norway) +47 909 808 48
Carl Bachke
Stifel
Nicolaus
Europe
Limited AIM Nominated Adviser and Broker (UK) +44 (0) 20 7710 7600
Callum Stewart
Nicholas Rhodes
Ashton Clanfield
FirstEnergy
Capital Broker (UK) +44 (0) 20 7448 0200
Hugh Sanderson
FTI Investor Relations Adviser (UK) wentworth@fticonsulting.com
Consulting +44 (0) 20 3727 1000
Edward Westropp
Financial Statements
The following primary statements have been extracted from the Q4 2016
unaudited condensed 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
December 31, December 31,
2016 2015
ASSETS
Current assets
Cash and cash equivalents 979 2,746
Trade and other receivables 6,699 3,253
Prepayments, deposits and advances to partners 187 841
Current portion of long-term receivables 12,283 18,190
20,148 25,030
Non-current assets
Long-term receivables 18,034 18,897
Exploration and evaluation assets 45,538 43,141
Property, plant and equipment 93,366 95,168
Deferred tax asset 31,145 34,341
188,083 191,547
Total assets 208,231 216,577
LIABILITIES
Current liabilities
Trade and other payables 8,675 6,269
Current portion of long-term loans 5,258 5,270
Current portion of other liability 1,260 1,508
15,193 13,047
Non-current liabilities
Long-term loans 15,254 20,512
Other liability 1,100 1,634
Decommissioning provision 773 973
17,127 23,119
Equity
Share capital 411,493 411,493
Equity reserve 26,275 25,683
Accumulated deficit (261,857) (256,765)
175,911 180,411
Total liabilities and equity 208,231 216,577
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss
United States $000s, unless otherwise stated
Three months ended December Twelve months ended December
31, 31,
2016 2015 2016 2015
Total revenue 2,730 3,101 11,750 4,637
Operating expenses
Production and
operating (923) (569) (3,371) (3,214)
General and
administrative (1,264) (2,035) (5,397) (6,367)
Depreciation and
depletion (729) (1,045) (3,864) (1,707)
Share based
compensation (121) (173) (592) (767)
Loss from operating (307) (721) (1,474) (7,418)
Finance income 1,051 1,020 4,693 4,818
Finance costs (1,045) (1,829) (5,115) (4,707)
Loss before tax (301) (1,530) (1,896) (7,307)
Deferred tax
(expense)/recovery (121) 34,341 (3,196) 34,341
Net (loss)/profit
and comprehensive
(loss)/profit (422) 32,811 (5,092) 27,034
Net (loss)/profit
per ordinary share
Basic and diluted
(US$/share) - 0.19 (0.03) 0.17
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Changes in Equity
United States $000s, unless otherwise stated
Number of Share Equity Accumulated Total
shares capital reserve deficit equity
$ $ $ $
Balance at
December 31,
2014 154,122,700 404,225 24,916 (283,799) 145,342
Net loss and
comprehensive
loss - - - 27,034 27,034
Share based
compensation - - 767 - 767
Issue of share
capital 15,412,269 7,639 - - 7,639
Share issue
costs - (371) - - (371)
Balance at
December 31,
2015 169,534,969 411,493 25,683 (256,765) 180,411
Balance at
December 31,
2015 169,534,969 411,493 25,683 (256,765) 180,411
Net loss and
comprehensive
loss - - - (5,092) (5,092)
Share based
compensation - - 592 - 592
Balance at
December 31,
2016 169,534,969 411,493 26,275 (261,857) 175,911
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Cash Flows
United States $000s, unless otherwise stated
Three months ended Twelve months ended
December 31, December 31,
2016 2015 2016 2015
Operating activities
Net (loss)/profit for
the period (422) 32,811 (5,092) 27,034
Adjustments for:
Depreciation and
depletion 729 1,045 3,864 1,707
Finance (income)/costs,
net (6) 809 422 (111)
Deferred tax
expense/(recovery) 121 (34,341) 3,196 (34,341)
Share based compensation 121 173 592 767
Change in non-cash
working capital (1,371) (348) (2,506) 175
Net cash (utilized
in)/generated from
operating activities (828) 149 476 (4,769)
Investing activities
Acquisitions of
evaluation and
exploration assets (736) 687 (2,371) (10,299)
Acquisitions of
property, plant and
equipment (2,338) (692) (2,347) (12,926)
Reductions of/(additions
to) long-term
receivable 2,469 556 10,763 (1,116)
Interest income - 7 - 7
Net cash (used in)/from
investing activities (605) 558 6,045 (24,334)
Financing activities
Proceeds from long-term
loan - - - 20,000
Repayment of long-term
loan (1,000) - (5,333) -
Interest paid (214) (243) (2,073) (906)
Issue of share capital,
net of issue costs - - - 7,268
Payment of other
liability (102) - (882) -
Net cash (used in)/from
financing activities (1,316) (243) (8,288) 26,362
Net change in cash and
cash equivalents (2,749) 464 (1,767) (2,741)
Cash and cash
equivalents, beginning
of the period 3,728 2,282 2,746 5,487
Cash and cash
equivalents, end of the
period 979 2,746 979 2,746
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.
This announcement contains inside information as defined in EU
Regulation No. 596/2014 and is in accordance with the Company's
obligations under Article 17 of that Regulation.
Q4 2016 MDA: http://hugin.info/136496/R/2082587/784880.pdf
Q4 2016 Financial Statements:
http://hugin.info/136496/R/2082587/784879.pdf
2017 02 28 Press Release: http://hugin.info/136496/R/2082587/784845.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq 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
http://www.wentworthresources.com/
(END) Dow Jones Newswires
February 28, 2017 02:00 ET (07:00 GMT)
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