PRESS
RELEASE
23 March 2017
Wentworth
Resources Limited
("Wentworth" or
the "Company")
2016 Full Year
Results
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 audited financial results for the year ended 31
December 2016.
The following should be read in
conjunction with the 2016 Management Discussion and Analysis
("MD&A") and Consolidated Financial Statements which are
available on the Company's updated website at
http://www.wentworthresources.com.
Further to the announcement of 28
February 2017 regarding the unaudited Q4 2016 Financial Statements
and MD&A, an independent reserves assessment of the Company's
Tanzanian gas assets was completed and announced on 9 March 2017
and an Annual Statement of Reserves 2016 has been included in the
2016 MD&A.
2016
HIGHLIGHTS
Reserves
-
Independent reserves evaluation attributed
Wentworth's share of Proved + Probable (2P) reserves valued at
US$180.3 million NPV (10%) after tax at December 31, 2016 to the
Company's gas fields in Tanzania.
-
Net 2P reserves were 115.9 Bscf (19.3 MMbbl BOE)
which were higher than 2015 after taking into consideration gas
production during the year.
Financial
-
Gas sales revenue of $11.75 million up 153
percent from 2015 due to the commencement of gas sales to the new
Mtwara to Dar es Salaam gas pipeline during Q3 2015.
-
Net loss of $5.09 million ($0.03 per share)
compared to a 2015 net profit of $27.03 million ($0.17 per share);
2015 profit includes a non-cash deferred tax recovery of $34.34
million.
-
Development and exploration capital expenditures
of $2.06 million and $2.40 million, respectively during 2016.
-
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
(December 31, 2015 - $26.0 million) following $5.33 million of
principal payments during the year.
-
Subsequent to year end, amended the timing of
principal payments on the existing $20.0 million credit facility
and secured a new $2.5 million credit facility for working capital
purposes.
Operational
Tanzania
-
The Mnazi Bay field achieved average gross daily
gas production of 43.0 MMscf/d compared to 15.7 MMscf/d during
2015.
-
Expansion of the liquid separation units and gas
processing facilities at Mnazi Bay was ongoing during the year end
with commissioning and full operations expected in Q2
2017.
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.
-
Completed reprocessing of approximately 1,000 km
of 1984/1985 vibroseis data which represents all the existing
regional seismic coverage over the Tembo appraisal area.
-
Finalized the design details of a new 2D seismic
survey of approximately 700 km data. This survey will further
Wentworth's ability to identify a suitable appraisal location for
an appraisal well in 2018.
Geoff Bury,
Managing Director, commented:
"We are very pleased with the
updated reserve report covering our gas reserves in Tanzania which
more than underpins the quality of our producing asset. We expect
production to average between 40 and 50 MMscf/d throughout 2017
before seeing a material increase in volumes starting in 2018 with
the addition of newly constructed and commissioned power plants in
Dar es Salaam. With a fully invested field and all infrastructure
in place to more than double current production, we are well
positioned to benefit from increasing demand from current, stable
levels. "
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 |
Crux Advisers |
Investor Relations Adviser
(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 Consulting |
Investor Relations Adviser (UK) |
wentworth@fticonsulting.com
+44 (0) 20 3727 1000 |
|
Edward
Westropp
|
|
|
|
|
Consolidated
Financial Statements
The following primary statements
have been extracted from the 2016 consolidated financial statements
which are located on the Company's website at
www.wentworthresources.com.
WENTWORTH RESOURCES
LIMITED
Consolidated Statements of Financial
Position
United States $000s, unless otherwise stated
|
December 31,
2016 |
December 31,
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
Consolidated Statements of Comprehensive
Loss
United States $000s, unless otherwise stated
|
Year ended
December 31, |
|
2016 |
2015 |
|
|
|
Total revenue |
11,750 |
4,637 |
|
|
|
Operating expenses |
|
|
Production and operating |
(3,371) |
(3,214) |
General
and administrative |
(5,397) |
(6,367) |
Depreciation and depletion |
(3,864) |
(1,707) |
Share
based compensation |
(592) |
(767) |
Loss from operating |
(1,474) |
(7,418) |
|
|
|
Finance
income |
4,693 |
4,818 |
Finance
costs |
(5,115) |
(4,707) |
|
|
|
Loss before tax |
(1,896) |
(7,307) |
|
|
|
Deferred tax (expense)/recovery |
(3,196) |
34,341 |
|
|
|
Net (loss)/profit and comprehensive (loss)/profit |
(5,092) |
27,034 |
|
|
|
Net (loss)/profit per ordinary share |
|
|
Basic and
diluted (US$/share) |
(0.03) |
0.17 |
WENTWORTH RESOURCES
LIMITED
Consolidated Statements 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 |
- |
- |
- |
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
Consolidated Statements of Cash
Flows
United States $000s, unless otherwise stated
|
Year ended
December 31, |
|
2016 |
2015 |
Operating activities |
|
|
Net
(loss)/profit for the period |
(5,092) |
27,034 |
Adjustments for: |
|
|
Depreciation and depletion |
3,864 |
1,707 |
Finance
costs/(income), net |
422 |
(111) |
Deferred
tax expense/(recovery) |
3,196 |
(34,341) |
Share
based compensation |
592 |
767 |
Change in
non-cash working capital |
(2,506) |
175 |
Net cash generated from/(utilized in) operating
activities |
476 |
(4,769) |
|
|
|
Investing activities |
|
|
Acquisitions of evaluation and exploration assets |
(2,371) |
(10,299) |
Acquisitions of property, plant and equipment |
(2,347) |
(12,926) |
Reductions of/(additions to) long-term receivable |
10,763 |
(1,116) |
Interest
income |
- |
7 |
Net cash from/(used in) investing activities |
6,045 |
(24,334) |
|
|
|
Financing activities |
|
|
Proceeds
from long-term loan |
- |
20,000 |
Repayment
of long-term loan |
(5,333) |
- |
Interest
paid |
(2,073) |
(906) |
Issue of
share capital, net of issue costs |
- |
7,268 |
Payment
of other liability |
(882) |
- |
Net cash (used in)/from financing activities |
(8,288) |
26,362 |
|
|
|
|
|
|
Net
change in cash and cash equivalents |
(1,767) |
(2,741) |
Cash and
cash equivalents, beginning of the period |
2,746 |
5,487 |
Cash and cash equivalents, end of the period |
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.
2017 03 23 Press Release
Annual 2016 Financial Statements
2016 Report on Corporate Governance
Annual 2016 MDA
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
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