TIDMWRL
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:
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
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
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, December 31,
2016 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 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 - - - 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: http://hugin.info/136496/R/2089932/789099.pdf
Annual 2016 Financial Statements:
http://hugin.info/136496/R/2089932/789101.pdf
2016 Report on Corporate Governance:
http://hugin.info/136496/R/2089932/789104.pdf
Annual 2016 MDA: http://hugin.info/136496/R/2089932/789102.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
March 23, 2017 03:00 ET (07:00 GMT)
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