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: |
|
|
|
|
|
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 |
Swedbank First Securities |
Broker (Norway) |
+47 23 23
80 00 |
|
Ove
Gusevik |
|
|
Jarand
Lønne
|
|
Crux Advisers |
Investor Relations Adviser
(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 Consulting |
Investor Relations Adviser (UK) |
wentworth@fticonsulting.com
+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,
2016 |
December 31,
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 $000s, unless otherwise stated
|
Three months
ended September 30, |
Nine months
ended September 30, |
|
2016 |
2015 |
2016 |
2015 |
|
|
|
|
|
Total revenue |
2,384 |
972 |
9,020 |
1,536 |
|
|
|
|
|
Operating expenses |
|
|
|
|
Production and operating |
(778) |
(752) |
(2,448) |
(2,645) |
General
and administrative |
(1,065) |
(1,479) |
(4,133) |
(4,332) |
Depreciation and depletion |
(832) |
(434) |
(3,135) |
(662) |
Share
based compensation |
(107) |
(136) |
(471) |
(594) |
Loss from operating activities |
(398) |
(1829) |
(1,167) |
(6,697) |
|
|
|
|
|
Finance
income |
1,463 |
1,205 |
3,802 |
3,899 |
Finance
costs |
(1,960) |
(625) |
(4,230) |
(2,979) |
|
|
|
|
|
Loss before tax |
(895) |
(1,249) |
(1,595) |
(5,777) |
|
|
|
|
|
Deferred tax expense |
(2,696) |
- |
(3,075) |
- |
|
|
|
|
|
Net loss and comprehensive loss |
(3,591) |
(1,249) |
(4,670) |
(5,777) |
|
|
|
|
|
Net loss per ordinary share |
|
|
|
|
Basic and
diluted (US$/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 shares |
Share capital |
Equity reserve |
Accumulated deficit |
Total 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 30, |
Nine months
ended September 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
Q3 2016 Financial Statements
Q3 2016 MDA
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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