TIDMWRL
PRESS RELEASE
10 August 2017
Wentworth Resources Limited
("Wentworth" or the "Company")
Q2 2017 and Half Year 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 and six
months ended 30 June 2017.
The following should be read in conjunction with the Q2 2017 Management
Discussion and Analysis and Financial Statements which are available on
the Company's updated website at http://www.wentworthresources.com.
Corporate
-- On 23 May 2017, the Company completed a private placement and issued
16,953,496 new common shares, for cash consideration of $0.326 (GBP 0.25
or NOK 2.73) per share for total gross proceeds of $5.53 million (GBP4.2
million or NOK46.3 million).
Financial
-- Gas sales revenue of $2.15 million for the quarter, compared to $2.94
million in Q1 2017 and $3.43 million in Q2 2016. For the Half-year
2017 revenue was $5.10 million compared to $6.64 million in 2016.
-- Net loss of $1.25 million and $1.66 million in Q2 and Half-year 2017
compared to net losses of $0.17 million and $1.08 in 2016 respectively.
-- Capital expenditures of $0.61 million during Q2 and $1.3 million during
Half-year 2017 which compares to $2.16 million and $2.82 million in 2016
respectively.
-- Cash and cash equivalents on hand of $3.83 million compared with $0.98
million on hand at December 31, 2016.
-- Working capital of $9.08 million compared to $4.96 million at December
31, 2016.
-- Drew $0.56 million on new overdraft credit facility for working capital
purposes during Q2 2017.
Operational
Tanzania
-- Following 2016, a year in which gas demand varied significantly on a
month to month basis as existing government owned gas infrastructure was
upgraded, new infrastructure was commissioned and industry participation
in the gas supply and electrical power generation was established, gas
demand started to stabilise in the first half of 2017.
-- Since the end of the wet season during Q2 2017 when hydro power
generation is at its annual peak, gas production volumes have increased
substantially.
-- The Mnazi Bay field achieved average gross daily gas production during
the quarter of 30.7 MMscf/d and 36.9 MMscf/d during the first half of
2017, with June 2017 production averaging 44.3 MMscf/d. Gross gas sales
for Q2 to date have reached over 60 MMscf/d with management's forecast
for the full year 2017 remaining within the guided range of 40 to 50
MMscf/d.
-- Managed working capital with focus on petitioning purchasers of gas to
improve the timeliness of settling amounts owing and working with our two
main creditors, local banks and the operator of the Manzi Bay Concession,
to pay obligations upon settlement of receivables.
Mozambique
-- Proceeding with plan to commence the drilling of an appraisal well on the
Tembo discovery next year, before acquiring additional seismic if
necessary. Consideration to acquiring additional seismic will be
contingent upon the results of the appraisal well.
-- Continued work on reprocessing existing 2-D vibroseis seismic data,
completed Tembo-1 well analysis and continued mapping and interpretation
of all existing data with a view to selecting a well location.
-- Continued the process of securing an industry partner to participate in
the appraisal programme in advance of drilling an appraisal well.
Geoff Bury, Managing Director, commented:
"Second quarter production was impacted by the rainy season during which
hydro power generation is used as a substitute for gas-fired power
generation but production rebounded to an average for July of 61 MMscf/d
and we continue to maintain an average production guidance for the year
of between 40 and 50 MMscf/d.
The Company is effectively managing working capital through a period of
slower payments from its government agency customers TPDC and TANESCO.
These efforts include being fully engaged with Maurel & Prom and our
local Tanzania based banking institutions to effectively settle
obligations as cash flows improve through higher production volumes.
We continue to advance the process of securing a farm-in partner for the
drilling of an appraisal well in Mozambique and have received very
positive initial interest from industry. The Mozambique government has
expressed their support for the drilling of an appraisal well in 2018 in
advance of the need to acquire new seismic data over the gas discovery
area. The Company is currently determining a well location and expects
to secure a farm-in partner before the commencement of drilling
operations."
A conference call for investors, analysts and other interested parties
will be held this morning at 01.30 MDT (Calgary) / 08.30 BST (London) /
09.30 CEST (Oslo).
Call in numbers:
Please dial in 5-10 minutes prior to the start time and join the call by
referencing "Wentworth Q2
Results".
Participant Std International Dial-In: +44 (0) 1452 542303
Participant UK LocalCall Dial-In Number:
United Kingdom, LocalCall: 08448719456
Norway: 21033911
Participant FreeCall Dial in numbers:
Canada: 18669923610
France: 0805110467
Norway: 80016886
United States: 18663899778
-Ends-
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
GMP
FirstEnergy 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 Q2 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
June 30, December 31,
2017 2016
ASSETS
Current assets
Cash and cash equivalents 3,833 979
Trade and other receivables 9,624 6,699
Prepayments and deposits 175 187
Current portion of long-term receivables 11,454 12,283
25,086 20,148
Non-current assets
Long-term receivables 14,608 18,034
Exploration and evaluation assets 46,455 45,538
Property, plant and equipment 92,196 93,366
Deferred tax asset 31,372 31,145
184,631 188,083
Total assets 209,717 208,231
LIABILITIES
Current liabilities
Overdraft credit facility 558 -
Trade and other payables 8,234 8,675
Current portion of long-term loans 5,924 5,258
Current portion of other liability 1,290 1,260
16,006 15,193
Non-current liabilities
Long-term loans 12,528 15,254
Other liability 1,030 1,100
Decommissioning provision 819 773
14,377 17,127
Equity
Share capital 416,426 411,493
Equity reserve 26,420 26,275
Accumulated deficit (263,512) (261,857)
179,334 175,911
Total liabilities and equity 209,717 208,231
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss
United States $000s, unless otherwise stated
Three months ended June 30, Six months ended June 30,
2017 2016 2017 2016
Total revenue 2,152 3,430 5,096 6,636
Operating expenses
Production and
operating (903) (773) (1,813) (1,670)
General and
administrative (1,084) (1,556) (2,014) (3,068)
Depreciation and
depletion (654) (1,189) (1,548) (2,303)
Share based
compensation (37) (136) (145) (364)
Loss from operating
activities (526) (224) (424) (769)
Finance income 370 1,072 991 2,339
Finance costs (597) (1,062) (2,449) (2,270)
Loss before tax (753) (214) (1,882) (700)
Deferred tax
recovery/(expense) (493) 40 227 (379)
Net loss and
comprehensive
loss (1,246) (174) (1,655) (1,079)
Net loss per
ordinary share
Basic and diluted
(US$/share) (0.01) - (0.01) (0.01)
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Changes in Equity
United States $000s, unless otherwise stated
Accumulated Total
Note Number of shares Share capital Equity reserve deficit equity
$ $ $ $
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 10 - - 364 - 364
Balance at
June 30,
2016 169,534,969 411,493 26,047 (257,844) 179,696
Balance at
December 31,
2016 169,534,969 411,493 26,275 (261,857) 175,911
Net loss and
comprehensive
loss - - - (1,655) (1,655)
Share based
compensation 10 - - 145 - 145
Issue of share
capital 11 16,953,496 5,527 - - 5,527
Share issue
costs, net of
tax 11 - (594) - - (594)
Balance at
June 30,
2017 186,488,465 416,426 26,420 (263,512) 179,334
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Cash Flows
United States $000s, unless otherwise stated
Three months ended Six months ended
June 30 June 30,
2017 2016 2017 2016
Operating activities
Net loss for the period (1,246) (174) (1,655) (1,079)
Adjustments for:
Depreciation and depletion 654 1,189 1,548 2,303
Finance costs/(income), net 227 (10) 1,458 (69)
Deferred tax expense/(recovery) 493 (40) (227) 379
Share based compensation 37 136 145 364
Change in non-cash working capital (827) (88) (1,851) (1,027)
Net cash (utilized in)/generated
from operating activities (662) 1,013 (582) 871
Investing activities
Additions to evaluation and
exploration assets (506) - (950) -
Additions to property, plant and
equipment (174) (9) (391) (9)
Reductions of long-term receivable 1,411 2,699 2,400 5,295
Net cash from investing activities 731 2,690 1,059 5,286
Financing activities
Issue of share capital, net of issue
costs 4,933 - 4,933 -
Principal payments (2,000) (1,000) (2,014) (1,000)
Debt restructuring fee - - (83) -
Draw on overdraft credit facility 558 - 558 -
Interest paid (182) (251) (966) (1,024)
Payment of other liability - (221) (51) (594)
Net cash from/ (used in) financing
activities 3,309 (1,472) 2,377 (2,618)
Net change in cash and cash
equivalents 3,378 2,231 2,854 3,539
Cash and cash equivalents, beginning
of the period 455 4,054 979 2,746
Cash and cash equivalents, end of
the period 3,833 6,285 3,833 6,285
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, 2014, 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 information is subject to the disclosure requirements pursuant to
section 5-12 of the Norwegian Securities Trading Act.
Q2 2017 Financial Statements:
http://hugin.info/136496/R/2126572/811962.pdf
Q2 2017 MDA: http://hugin.info/136496/R/2126572/811963.pdf
170810 Press Release: http://hugin.info/136496/R/2126572/811964.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/
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