TIDMWRL
PRESS RELEASE
15 November 2016
Wentworth Resources Limited
("Wentworth" or the "Company")
Q3 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 its results for the quarter ended 30
September 2016.
The following should be read in conjunction with the Q3 2016 Management
Discussion and Analysis and Financial Statements which are available on
the Company's updated website at http://www.wentworthresources.com.
Q3 2016 HIGHLIGHTS
Financial
-- Gas sales revenue of $2.38 million for the quarter (Q3 2015: $0.97
million)
-- Loss before tax for the quarter of $0.9 million (Q3 2015: $1.25 million)
-- Exploration, appraisal and development capital expenditures of $0.97
million (Q3 2015: $1.51 million)
-- Outstanding debt reduced to $21.7 million following a $3.33 million
principal payment during the period
-- Cash and cash equivalents on hand of $3.73 million at September 30, 2016
(December 31, 2015: $2.75 million)
-- Working capital was $1.59 million at September 30, 2016 (December 31,
2015: $11.98 million)
-- Continue to make progress to expand the Company's external debt capacity
of up to $50 million
Operational
Tanzania
-- Achieved average gross daily gas production for the third quarter of 34
MMscf/d down from 51 MMscf/d during Q2 2016. Contributing to the
production decline from Q2 was the suspension of operations at the
Symbion gas-fired power plant as a result of a dispute with the Tanzania
Government, overhauls and commissioning of gas turbines at Ubungo II and
Kinyerezi I power stations, and allocation of gas demand to industry
competitors at the Songo Songo gas processing facility. The year-to-date
average gross daily production is 44 MMscf/d
-- Expansion of the liquid separation units and gas processing facilities at
Manzi Bay was ongoing during Q3 2016 with commissioning and full
operations expected in the coming months
-- Potential increase in industrial consumer demand includes supplying the
Dangote cement plant (30-40 MMscf/d) and resumption of operations at the
Symbion power plant (20 MMscf/d)
Mozambique
-- Engaged a third-party consulting firm to reprocess 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 data. This survey will further Wentworth's ability to identify a
suitable appraisal location for an appraisal well in 2018
-- Ongoing analysis of existing seismic and well data in Mozambique and
Tanzania to further our understanding of the regional Cretaceous geologic
section
-- Once the estimated cost of the new 2D seismic survey and preliminary cost
of an appraisal well are determined, it is the Company's intention to
secure an industry partner prior to commencing further capital activity
associated with the appraisal program
Geoff Bury, Managing Director, commented:
"Q3 2016 gas sales volumes were impacted by a combination of factors
that were primarily influenced by contractual issues beyond the control
of the Mnazi Bay joint venture partners. We anticipate base demand for
the remainder of 2016 and all of 2017 to be between 40 and 50 MMscf/d
with possible significant increases originating from gas sales to
industrial consumers and resumption of operations at the idle gas-fired
Symbion power generation plant.
I am also pleased that progress continues to be made to bolster the
balance sheet by looking to refinance our existing debt facilities and
expand the debt capacity to provide further financial flexibility going
forward. We continue to feel confident in the future build up in
demand; as the new power plants, Kinyerezi-1 expansion and Kinyerezi II,
are under construction and expected to be commissioned and operational
during 2018, which coupled with increased industrial demand, provides
exceptional long-term potential for the Company."
A conference call for investors, analysts and other interested parties
will be held the same day at 06:00 MST (Calgary) / 13:00 GMT (London) /
14:00 CET (Oslo). Call in numbers:
International/ United Kingdom Dial In: +44 (0)20 7026 5967
Canada: +1 647 794 1827
Norway: +47 2350 0296
United States: +1 719 457 1036
The participants will be asked for their name, company and confirmation
code. The Wentworth Resources confirmation code is: 1690174.
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
Swedbank
First
Securities Broker (Norway) +47 23 23 80 00
Ove Gusevik
Jarand Lønne
Crux Investor Relations Adviser
Advisers (Norway) +47 909 808 48
Jan Petter Stiff
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
Tom Hufton
Financial Statements
The following primary statements have been extracted from the Q3 2016
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
September 30, December 31,
2016 2015
ASSETS
Current assets
Cash and cash equivalents 3,728 2,746
Trade and other receivables 6,144 3,253
Prepayments, deposits and advances to partners 261 841
Current portion of long-term receivables 12,020 18,190
22,153 25,030
Non-current assets
Long-term receivables 19,731 18,897
Exploration and evaluation assets 44,803 43,141
Property, plant and equipment 94,159 95,168
Deferred tax asset 31,266 34,341
189,959 191,547
Total assets 212,112 216,577
LIABILITIES
Current liabilities
Trade and other payables 10,894 6,269
Current portion of long-term loans 8,593 5,270
Current portion of other liability 1,072 1,508
20,559 13,047
Non-current liabilities
Long-term loans 12,906 20,512
Other liability 1,321 1,634
Decommissioning provision 1,114 973
15,341 23,119
Equity
Share capital 411,493 411,493
Equity reserve 26,154 25,683
Accumulated deficit (261,435) (256,765)
176,212 180,411
Total liabilities and equity 212,112 216,577
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss
United States $000s, unless otherwise stated
Three months ended September Nine months ended September
30, 30,
2016 2015 2016 2015
Total revenue 2,384 972 9,020 1,536
Operating
expenses
Production and
operating (778) (752) (2,448) (2,645)
General and
administrative (1,065) (1,479) (4,133) (4,332)
Depreciation
and depletion (832) (434) (3,135) (662)
Share based
compensation (107) (136) (471) (594)
Loss from
operating
activities (398) (1829) (1,167) (6,697)
Finance income 1,463 1,205 3,802 3,899
Finance costs (1,960) (625) (4,230) (2,979)
Loss before tax (895) (1,249) (1,595) (5,777)
Deferred tax
expense (2,696) - (3,075) -
Net loss and
comprehensive
loss (3,591) (1,249) (4,670) (5,777)
Net loss per
ordinary share
Basic and
diluted
(US$/share) (0.02) (0.01) (0.03) (0.04)
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 - - - (5,777) (5,777)
Share based
compensation - - 594 - 594
Issue of share
capital 15,412,269 7,639 - - 7,639
Share issue
costs - (371) - - (371)
Balance at
September 30,
2015 169,534,969 411,493 25,510 (289,576) 147,427
Balance at
December 31,
2015 169,534,969 411,493 25,683 (256,765) 180,411
Net loss and
comprehensive
loss - - - (4,670) (4,670)
Share based
compensation - - 471 - 471
Balance at
September 30,
2016 169,534,969 411,493 26,154 (261,435) 176,212
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Cash Flows
United States $000s, unless otherwise stated
Three months ended September Nine months ended September
30, 30,
2016 2015 2016 2015
Operating
activities
Net loss for the
period (3,591) (1,249) (4,670) (5,777)
Adjustments for:
Depreciation and
depletion 832 434 3,135 662
Finance
costs/(income),
net 497 (580) 428 (920)
Deferred tax
expense 2,696 - 3,075 -
Share based
compensation 107 136 471 594
Change in
non-cash
working
capital (108) (1,855) (1,135) 523
Net cash
generated
from/(utilized
in) operating
activities 433 (3,114) 1,304 (4,918)
Investing
activities
Acquisitions of
evaluation and
exploration
assets (541) (3,834) (1,635) (10,986)
Acquisitions of
property, plant
and equipment - (4,834) (9) (12,234)
Reductions
of/(additions
to) long-term
receivable 1,905 (168) 8,294 (1,672)
Net cash
from/(used in)
investing
activities 1,364 (8,836) 6,650 (24,892)
Financing
activities
Issue of share
capital, net of
issue costs - 7,268 - 7,268
Repayment of
long-term loan (3,333) - (4,333) -
Proceeds from
long-term loan - 5,161 - 20,000
Interest paid (835) (421) (1,859) (663)
Payment of other
liability (186) - (780) -
Net cash (used
in)/from
financing
activities (4,354) 12,008 (6,972) 26,605
Net change in
cash and cash
equivalents (2,557) 58 982 (3,205)
Cash and cash
equivalents,
beginning of
the period 6,285 2,224 2,746 5,487
Cash and cash
equivalents,
end of the
period 3,728 2,282 3,728 2,282
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.
2016 11 15 Press Release: http://hugin.info/136496/R/2056902/770521.pdf
Q3 2016 Financial Statements:
http://hugin.info/136496/R/2056902/770519.pdf
Q3 2016 MDA: http://hugin.info/136496/R/2056902/770520.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
November 15, 2016 02:01 ET (07:01 GMT)
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