TIDMWRL
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
-- The Mnazi Bay field achieved average gross daily gas production during
the quarter of 42.8 MMscf/d compared to 47.6 MMscf/d during Q1 2016.
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:
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
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, December 31,
2017 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
Accumulated Total
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 - - - (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: http://hugin.info/136496/R/2108314/800767.pdf
Q1 2017 Financial Statements:
http://hugin.info/136496/R/2108314/800768.pdf
Q1 2017 MDA: http://hugin.info/136496/R/2108314/800769.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
May 30, 2017 02:00 ET (06:00 GMT)
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