PRESS
RELEASE
30 May 2017
Wentworth
Resources Limited
("Wentworth" or
the "Company")
Q1 2017 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 31 March
2017.
The following should be read in
conjunction with the Q1 2017 Management Discussion and Analysis and
Financial Statements which are available on the Company's updated
website at http://www.wentworthresources.com.
Financial
-
Gas sales revenue of $2.94 million for the
quarter, compared to $3.21 million in Q1
2016.
-
Net loss of $0.41 million in Q1 2017 compared to
a net loss of $0.91 million in Q1 2016.
-
Capital expenditures of $0.68 million compared
to $0.66 million during Q1 2016.
-
Cash and cash equivalents on hand of $0.46
million compared with $0.98 million on hand at December 31,
2016.
-
Working capital was $5.50 million compared to
$4.96 million at December 31, 2016.
-
Amended the timing of principal payments on the
existing $20.0 million credit facility and secured a new $2.5
million overdraft facility for working capital purposes.
Operational
Tanzania
Mozambique
-
Reprocessing of 1,000 kilometers of existing 2-D
vibroseis seismic data was completed.
-
Mapping and re-interpretation of seismic is
progressing and will be complete during Q2 2017.
-
Designed a new 500 km seismic program and in the
process of identifying the location of an appraisal well.
-
Commenced process of securing an industry
partner to participate in the appraisal program.
Geoff Bury,
Managing Director, commented:
"First quarter production was in
line with expectations and we continue to expect 2017 production to
average between 40 and 50 MMscf/d. We have worked closely
with our primary external lender to restructure the timing of
principal repayments to better align with anticipate production
levels. Earlier this month we strengthened the balance sheet
with funds from a private placement which will allow us to manage
working capital during a temporary period of possible slower
payments from customers and to advance our gas appraisal asset in
Mozambique.
Improving the timeliness of
collections from TPDC and TANESCO is of paramount importance as
well as maintaining support from and close cooperation with our
creditors and external lenders. As a result, the next few quarters
will be challenging for the Company after which we should be on
solid footing to benefit greatly from an anticipated step up in gas
demand starting early 2018.
As a near term catalyst, we look
to determine the upside potential of the Tembo gas discovery and
secure a farm-in partner to participate in the appraisal
program."
A conference call for investors,
analysts and other interested parties will be held that day at
06:00 MST (Calgary) / 13.00 BST (London) / 14.00 CEST (Oslo). Call
in numbers:
Call in numbers:
Canada: +1 866 992 3610
Norway: + 800 16886
United States: +1 866 389 9778
International/ United Kingdom Dial
In: +44 (0) 1452 542303
Participants will be able to enter
the call by referencing "Wentworth Q1 results" and will be asked
for their name and company.
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
|
|
|
|
|
Financial
Statements
The following primary statements
have been extracted from the Q1 2017 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
|
|
March 31,
2017 |
December 31,
2016 |
|
|
|
|
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and
cash equivalents |
|
455 |
979 |
Trade and
other receivables |
|
9,378 |
6,699 |
Prepayments and deposits |
|
148 |
187 |
Current
portion of long-term receivables |
|
10,501 |
12,283 |
|
|
20,482 |
20,148 |
Non-current assets |
|
|
|
Long-term
receivables |
|
16,758 |
18,034 |
Exploration and evaluation assets |
|
45,995 |
45,538 |
Property,
plant and equipment |
|
92,696 |
93,366 |
Deferred
tax asset |
|
31,865 |
31,145 |
|
|
187,314 |
188,083 |
Total assets |
|
207,796 |
208,231 |
|
|
|
|
LIABILITIES |
|
|
|
Current liabilities |
|
|
|
Trade and
other payables |
|
8,703 |
8,675 |
Current
portion of long-term loans |
|
5,258 |
5,258 |
Current
portion of other liability |
|
1,019 |
1,260 |
|
|
14,980 |
15,193 |
Non-current liabilities |
|
|
|
Long-term
loans |
|
15,188 |
15,254 |
Other
liability |
|
1,222 |
1,100 |
Decommissioning provision |
|
796 |
773 |
|
|
17,206 |
17,127 |
Equity |
|
|
|
Share
capital |
|
411,493 |
411,493 |
Equity
reserve |
|
26,383 |
26,275 |
Accumulated deficit |
|
(262,266) |
(261,857) |
|
|
175,610 |
175,911 |
Total liabilities and equity |
|
207,796 |
208,231 |
|
|
|
|
WENTWORTH RESOURCES
LIMITED
Unaudited Condensed Consolidated Interim Statement
of Comprehensive Loss
United States $000s, unless otherwise stated
|
|
|
Three months
ended March 31, |
|
|
|
|
2017 |
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
|
2,944 |
3,206 |
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Production and operating |
|
|
|
(910) |
(897) |
General
and administrative |
|
|
|
(930) |
(1,512) |
Depreciation and depletion |
|
|
|
(894) |
(1,114) |
Share
based compensation |
|
|
|
(108) |
(228) |
Profit/(loss) from operations |
|
|
|
102 |
(545) |
|
|
|
|
|
|
Finance
income |
|
|
|
635 |
1,285 |
Finance
costs |
|
|
|
(1,866) |
(1,226) |
Loss before tax |
|
|
|
(1,129) |
(486) |
|
|
|
|
|
|
Deferred tax recovery/(expense) |
|
|
|
720 |
(419) |
|
|
|
|
|
|
Net loss and comprehensive loss |
|
|
|
(409) |
(905) |
|
|
|
|
|
|
Net loss per ordinary share |
|
|
|
|
|
Basic and
diluted (US$/share) |
|
|
|
- |
(0.01) |
|
|
|
|
|
|
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, 2015 |
169,534,969 |
411,493 |
25,683 |
(256,765) |
180,411 |
Net loss
and comprehensive loss |
- |
- |
- |
(905) |
(905) |
Share
based compensation |
- |
- |
228 |
- |
228 |
Balance
at March 31, 2016 |
169,534,969 |
411,493 |
25,911 |
(257,670) |
179,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at December 31, 2016 |
169,534,969 |
411,493 |
26,275 |
(261,857) |
175,911 |
Net loss
and comprehensive loss |
- |
- |
- |
(409) |
(409) |
Share
based compensation |
- |
- |
108 |
- |
108 |
Balance at March 31, 2017 |
169,534,969 |
411,493 |
26,383 |
(262,266) |
175,610 |
|
|
|
|
|
|
WENTWORTH RESOURCES
LIMITED
Unaudited Condensed Consolidated Interim Statement
of Cash Flows
United States $000s, unless otherwise stated
|
|
|
Three months
ended March 31, |
|
|
|
|
2017 |
2016 |
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
Net loss
for the period |
|
|
|
(409) |
(905) |
Adjustments for: |
|
|
|
|
|
Depreciation and depletion |
|
|
|
894 |
1,114 |
Finance
costs/(income), net |
|
|
|
1,231 |
(59) |
Deferred tax (recovery)/expense |
|
|
|
(720) |
419 |
Share
based compensation |
|
|
|
108 |
228 |
Change in
non-cash working capital |
|
|
|
(2,290) |
(939) |
Net cash utilized in operating activities |
|
|
|
(1,186) |
(142) |
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Additions
to evaluation and exploration assets |
|
|
|
(444) |
- |
Additions
to property, plant and equipment |
|
|
|
(217) |
- |
Reductions of long-term receivable |
|
|
|
2,255 |
2,596 |
Net cash from investing activities |
|
|
|
1,594 |
2,596 |
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Principal
payments |
|
|
|
(14) |
- |
Debt
restructuring fee |
|
|
|
(83) |
- |
Interest
paid |
|
|
|
(784) |
(773) |
Payment
of other liability |
|
|
|
(51) |
(373) |
Net cash used in financing activities |
|
|
|
(932) |
(1,146) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
change in cash and cash equivalents |
|
|
|
(524) |
1,308 |
Cash and
cash equivalents, beginning of the period |
|
|
|
979 |
2,746 |
Cash and cash equivalents, end of the period |
|
|
|
455 |
4,054 |
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, 2016, 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.
170530 Announcement
Q1 2017 Financial Statements
Q1 2017 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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