WENTWORTH RES PRESS RELEASE
18 November 2014
Wentworth Resources Limited
("Wentworth" or the "Company")
Q3 2014 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 third quarter and nine months ended 30 September 2014.
The following should be read in conjunction with the Q3 2014 Management Discussion and Analysis and Financial Statements which are available on the Company's updated website at http://www.wentworthresources.com:
http://www.wentworthresources.com/.
Q3 2014 Highlights
· Signed a long-term gas sales and purchase agreement to supply discovered natural gas at a price of US$3.00 per mmbtu (approximately US$3.07 per mscf) from our Mnazi Bay Concession to the new Government owned pipeline, which is scheduled for completion and commissioning during Q1 2015.
· Agreed the terms for two credit facilities totaling $26 million with a Tanzanian bank. Execution of the credit facility agreements is anticipated during Q4 2014 pending finalization of a security agreement with the bank. Following execution of the credit facility agreements, the Company will use the funds to pay for field infrastructure costs, drilling of one development well in Tanzania and the repayment of an existing $6 million long-term loan.
· Completed acquisition of 315 km of conventional 2D seismic over prospective areas of the Mnazi Bay Concession and commenced processing and interpreting of the data.
· Continued drilling the Tembo-1 exploration well in the Rovuma Onshore Block in Mozambique.
· Third quarter and nine months capital expenditures of $8.3 million and $17.6 million, respectively, compared to $1.1 million and $4.8 million respectively during the same periods in 2013.
· Loss from operating activities for the quarter of $2.4 million compared with a loss of $2.3 during the same period in 2013.
· Cash and cash equivalents and short-term deposits of $14.3 million at September 30, 2014 compared with $37.7 million at December 31, 2013.
· Working capital at September 30, 2014 was $24.0 million compared to $38.4 million at December 31, 2013.
Outlook
· The frontier exploration well located onshore Mozambique, Tembo-1, which commenced operations in June 2014 has reached a depth of approximately 2,965 meters on October 30, 2014. Although it is difficult to predict how long drilling will take, the Company plans to provide a complete update to shareholders on the results once drilling operations are complete.
· Following completion of Tembo-1 well, the drilling rig will be mobilized to the northern section of the Onshore Rovuma Block, Mozambique and will commence drilling of the Kifaru-1 prospect.
· Development activity in the Mnazi Bay Concession will increase during the months leading up to delivery of first gas to the Government owned pipeline. Wentworth's share of development expenses will be financed by a debt facility from a Tanzanian based bank. Funds from the debt facility will be accessible following completion and execution of legal loan documentation anticipated during Q4 2014.
Geoff Bury, Managing Director, commented:
"Signing of a long-term gas sales agreement on September 12, 2014 was a key milestone for Wentworth and has established a solid foundation for significant growth in East Africa. With the Government owned, Chinese constructed gas pipeline and gas processing facilities on schedule for completion and commissioning in Q1 2015, development activities connecting our existing field infrastructure to the pipeline have accelerated. We expect to be ready to deliver gas from our discovered gas fields in Mnazi Bay when requested by the Government and production is expected to reach 80mmscf/day by the end of Q2 2015.
Drilling of the Tembo-1 exploration well has taken much longer than originally planned and we appreciate the patience of shareholders as the well remains a tight hole until drilling operations are complete. With the drilling of Tembo-1 and Kifaru-1 and the delivery of first gas, the next 3-6 months looks to be a transformational period in the Company's short history."
Enquiries: | ||
| Wentworth | Lance Mierendorf, Chief Financial Officer | Lance.mierendorf@wentworthresources.com: mailto:Lance.mierendorf@wentworthresources.com +1 403 680 8773 |
| Katherine Roe, Head of Investor Relations and Corporate Communications | Katherine.roe@wentworthresources.com: mailto:Katherine.roe@wentworthresources.com +44 7841 087 230 | |
| Swedbank First Securities | Broker(Norway) | +47 23 23 80 00 |
| Ove Gusevik | ||
| Jarand Lønne | ||
| Crux Kommunikasjon | Investor Relations Adviser (Norway) | |
| Jan Petter Stiff | +47 99 51 38 91 | |
| Carl Christian Bachke | +47 90 98 08 48 | |
| Panmure Gordon | AIM Nominated Adviser and Broker (UK) | +44 (0) 20 7886 2500 |
| Dominic Morley | ||
| Adam James | ||
| Tom Salvesen | ||
| FirstEnergy Capital | Broker (UK) | +44 (0) 20 7448 0200 |
| Majid Shafiq | ||
| Travis Inlow | ||
| Investec | Broker (UK) | +44 (0) 20 7597 4000 |
| Chris Sim | ||
| Instinctif Partners | Investor Relations Adviser (UK) | +44 (0) 20 7457 2020 |
| Catherine Wickman | ||
| Harry Cameron | ||
Financial Statements
The following primary statements have been extracted from the Q3 2014 unaudited consolidated financial statements which are located on the Company's website at www.wentworthresources.com:
http://www.wentworthresources.com.
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Financial Position
United States $000s, unless otherwise stated
| September 30, 2014 | December 31, 2013 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 14,288 | 14,501 |
| Short-term investments | - | 23,176 |
| Trade and other receivables | 2,454 | 1,845 |
| Prepayments, deposits and advances to partners | 904 | 1,674 |
| Current portion of long-term receivables | 10,262 | 658 |
| 27,908 | 41,854 | |
| Non-current assets | ||
| Long-term receivables | 23,210 | 28,661 |
| Exploration and evaluation assets | 67,083 | 50,636 |
| Property, plant and equipment | 19,157 | 18,498 |
| 109,450 | 97,795 | |
| Total assets | 137,358 | 139,649 |
| LIABILITIES | ||
| Current liabilities | ||
| Trade and other payables | 3,928 | 3,487 |
| 3,928 | 3,487 | |
| Non-current liabilities | ||
| Long-term loans | 4,146 | 3,816 |
| Other long-term liabilities | 2,284 | 2,836 |
| Decommissioning provision | 758 | 685 |
| 7,188 | 7,337 | |
| Equity | ||
| Share capital | 404,225 | 403,998 |
| Equity reserve | 24,611 | 23,903 |
| Accumulated deficit | (302,594) | (299,076) |
| 126,242 | 128,825 | |
| Total liabilities and equity | 137,358 | 139,649 |
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss
United States $000s, unless otherwise stated
| Three months ended September 30, | Nine months ended September 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Total revenue | 270 | 240 | 759 | 691 |
| Operating expenses | ||||
| Production and operating | (474) | (409) | (1,646) | (1,163) |
| General and administrative | (1,767) | (1,847) | (5,066) | (5,786) |
| Share based compensation | (308) | (109) | (785) | (263) |
| Depreciation and depletion | (155) | (140) | (446) | (402) |
| Gain from sale of office assets | 5 | - | 60 | - |
| Loss from operating activities | (2,429) | (2,265) | (7,124) | (6,923) |
| Finance income | 1,437 | 1,454 | 4,484 | 4,216 |
| Finance costs | (326) | (2,939) | (878) | (3,382) |
| Gain on derivative financial liability | - | 328 | - | 721 |
| Net loss and comprehensive loss | (1,318) | (3,422) | (3,518) | (5,368) |
| Net loss per ordinary share | ||||
| Basic and diluted (US$/share) | (0.01) | (0.04) | (0.02) | (0.06) |
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, 2012 | 82,503,940 | 361,675 | 21,996 | (289,087) | 94,584 |
| Net loss and comprehensive loss | - | - | - | (5,368) | (5,368) |
| Share based compensation | - | - | 263 | - | 263 |
| Issue of share capital | 85,000 | 108 | (37) | - | 71 |
| Balance at September 30, 2013 | 82,588,940 | 361,783 | 22,222 | (294,455) | 89,550 |
| Balance at December 31, 2013 | 153,872,700 | 403,998 | 23,903 | (299,076) | 128,825 |
| Net loss and comprehensive loss | - | - | - | (3,518) | (3,518) |
| Share based compensation | - | - | 785 | - | 785 |
| Issue of share capital | 250,000 | 227 | (77) | - | 150 |
| Balance at September 30, 2014 | 154,122,700 | 404,225 | 24,611 | (302,594) | 126,242 |
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, | |||||
| 2014 | 2013 | 2014 | 2013 | |||
| Operating activities | ||||||
| Net loss for the period | (1,318) | (3,422) | (3,518) | (5,368) | ||
| Adjustments for: | ||||||
| Share based compensation | 308 | 109 | 785 | 263 | ||
| Depreciation and depletion | 155 | 140 | 446 | 402 | ||
| Finance income, net | (1,111) | 1,485 | (3,606) | (834) | ||
| Gain from sale of assets | (5) | - | (60) | - | ||
| Gain on derivative financial liability | - | (328) | - | (721) | ||
| Change in non-cash working capital | 3,760 | (218) | (156) | (1,465) | ||
| Cash provided by/(used in) operating activities | 1,789 | (2,234) | (6,109) | (7,723) | ||
| Investing activities | ||||||
| Additions to evaluation and exploration assets | (7,976) | (628) | (16,447) | (3,883) | ||
| Additions to property, plant and equipment | (331) | (450) | (1,107) | (871) | ||
| Conversion of term-deposits to cash | 4,013 | - | 23,176 | - | ||
| Interest income | 21 | 1 | 96 | 20 | ||
| Net reduction in long-term receivable | 43 | 68 | 235 | 195 | ||
| Change in non-cash working capital | - | 397 | - | 1,772 | ||
| Cash (used in)/provided by investing activities | (4,230) | (612) | 5,953 | (2,767) | ||
| Financing activities | ||||||
| Issue of share capital | - | - | 150 | 71 | ||
| Net proceeds from long-term loan | - | 5,965 | - | 9,887 | ||
| Repayment of long-term loan | - | (5,437) | - | (6,036) | ||
| Interest paid | (91) | (175) | (269) | (445) | ||
| Proceeds from sale of office assets | 7 | - | 62 | - | ||
| Decrease of other long-term liabilities | - | (157) | - | (483) | ||
| Cash (used in)/provided by financing activities | (84) | 196 | (57) | 2,994 | ||
| Net change in cash and cash equivalents | (2,525) | (2,650) | (213) | (7,496) | ||
| Cash and cash equivalents, beginning of the period | 16,813 | 4,506 | 14,501 | 9,352 | ||
| Cash and cash equivalents, end of the period | 14,288 | 1,856 | 14,288 | 1,856 | ||
About Wentworth Resources
Wentworth Resources is a publicly traded (OSE:WRL, AIM:WRL), independent oil & gas company with: natural gas production; midstream assets; a committed exploration and appraisal drilling programme; and large-scale gas monetisation opportunities, all in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique.
Gerold Fong, Vice President of Exploration (BSC Geophysics, 1982) who has 31 years of experience in the exploration and production industry, has read and approved the technical disclosure in this regulatory announcement.
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, 2013, 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.
http://hugin.info/136496/R/1872267/659145.pdf
2014 11 18 Press Release:
http://hugin.info/136496/R/1872267/659143.pdf
Q3 2014 Financial Statements:
http://hugin.info/136496/R/1872267/659144.pdf
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
