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: |
|
|
|
|
|
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
|
|
GMP FirstEnergy |
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 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,
2017 |
December 31,
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
|
Note |
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 |
|
- |
- |
- |
(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
June 30 |
Six months
ended
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
Q2 2017 MDA
170810 Press Release
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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