WENTW RES : Limited : 2012 Full Year Results
02/28/2013| 02:05am US/Eastern
Wentworth Resources Limited
("Wentworth" or the "Company")
2012 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 results for the year ended December 31, 2012.
The following should be read in conjunction with the audited 2012 Consolidated Financial Statements and Management's Discussion & Analysis and Director's Report which are available on the Company's website at http://www.wentworthresources.com:
Asset swap and disposition
Completed an asset swap by disposing of a royalty interest in Mozambique in exchange for an increased participation interest in the Mnazi Bay Concession in Tanzania. Realized a gain on the sale of $29.80 million
Received cash consideration of $18.86 million upon completion of the exercise of pre-emption rights of an industry partner in the Mnazi Bay Concession
Sale of power plant and associated assets
Mnazi Bay Block, Tanzania
The Tanzanian government inaugurated the Mnazi Bay to Dar es Salaam gas transportation pipeline project in July and laid the foundation stone in November
Drilled an exploration well that encountered hydro-carbons in a new reservoir interval not previously encountered in the concession area
Completed work-overs of three existing gas wells in preparation for full production into the new pipeline
Commenced an offshore 3D seismic program covering approximately 250 square kilometers in December. The seismic data acquisition was completed in January 2013
Onshore Rovuma Block, Mozambique
Revenues from continuing operations of $0.82 million, up 10% from 2011
Net profit in 2012 of $24.94 million compared to a loss of $6.25 million in 2011
Acquired all non-controlling interest in Tanzanian assets for $1.62 million
Cash and cash equivalents on hand at December 31, 2012 of $9.35 million compared to $9.07 million on hand at December 31, 2011
Working capital, excluding assets and liabilities of discontinued operations, at December 31, 2012 of $8.84 million
Construction by third party contractors of the Mnazi Bay to Dar es Salaam gas transportation pipeline project is expected to be completed by mid-2014
The Company, along with our Mnazi Bay Concession partners, are working with the Tanzanian government to finalize a gas sales agreement to initially supply 80 mmcf/day of gas to the planned 532km Mtwara to Dar es Salaam gas pipeline
Ended the year in a strong financial position and will continue to assess attractive opportunities to grow the asset portfolio
Geoff Bury, Managing Director, commented:
"2012 was a transitional year for Wentworth during which exploration and development operations in Tanzania and Mozambique were financed through strategic asset transactions netting the Company in excess of $30 million. The recent completion of seismic field acquisitions in both Tanzania and Mozambique and ongoing processing and interpretation provides the basis for active exploration and drilling in 2013 and 2014. In addition, noticeable progress has been made on the construction of a 532 km pipeline connecting our gas fields in the Mtwara region of Tanzania to the capital Dar es Salaam which is expected to provide a market for the Company's gas resources in 2014. The Company, its partners in the Mnazi Bay Concession and the government of Tanzania are working diligently to conclude a gas sales agreement which will set the foundation for the next phase in the Company's growth strategy."
| Wentworth || Lance Mierendorf, CFO || firstname.lastname@example.org |
| || || Eric Fore, Finance, Investor &|
Public Relations Manager
| email@example.com |
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| Panmure Gordon || Nominated adviser & broker || +44 (0)20 7886 2500 |
| || || Katherine Roe|
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| FirstEnergy Capital || Broker || +44 (0) 20 7448 0200 |
| || Majid Shafiq|
| College Hill || Investor relations adviser || +44 (0) 20 7457 2020 |
| || || Rupert Trefgarne|
| Crux Kommunikasjon || Investor relations adviser || +47 (0) 909 808 48 |
| || || Carl Christian Bachke || |
About Wentworth Resources
Wentworth Resources is a publicly traded (OSE:WRL, AIM:WRL), independent oil & gas company with: natural gas production; midstream and downstream assets; a committed exploration and appraisal drilling programme; and large-scale gas monetisation programmes, all in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique.
Jon Rodd, (BSc and PhD in Geology), the Company's Competent Person, is a Director of Prime Energy Consult Ltd, which is providing technical advice to the Company. Dr Rodd has 29 years of experience in the exploration and production industry. He has reviewed and approved the technical information contained in this announcement pursuant to the AIM guidance note for mining and oil and gas companies.
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, 2012, available on Wentworth's website, for further description of the risks and uncertainties associated with Wentworth's business.
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.
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Source: Wentworth Resources Limited via Thomson Reuters ONE