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, 2013.
The following should be read in conjunction with the audited 2013 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.
Highlights
Corporate
Successfully completed a Private Placement and significantly oversubscribed Subsequent Offering, issuing a total of 70,950,427 new common shares for gross proceeds of USD 46 million.
Secured a new long-term loan facility at 6% interest per annum and no principal repayments due until the loan matures on December 31, 2017. A principal balance of USD 6.0 million remains outstanding at year end. In conjunction with the new loan facility, the lender was issued 5,000,000 share purchase warrants each exercisable into one common share of the Company at USD 0.648 per warrant on or before December 31, 2015.
Financial
Net loss of USD 9.99 million compared to a profit of USD 24.94 million in 2012 which includes a gain on sale of oil and gas assets of USD 29.80 million.
Exploration capital expenditures of USD 6.05 million compared to USD 11.25 million in 2012.
Cash and cash equivalents on hand and short-term deposits at December 31, 2013 totalled USD 37.68 million compared to USD 9.35 million on hand at December 31, 2012.
Working capital at December 31, 2013 of USD 38.37 million versus USD 16.61 million at December 31, 2012.
Operational and Geological
Mnazi Bay Block, Tanzania
Continued consultations with the Government of Tanzania to conclude a Gas Sales Agreement ("GSA") for the supply of natural gas to the Mtwara to Dar es Salaam pipeline, which is under construction and expected to be completed and commissioned during Q1 2015.
Completed acquisition and processing with interpretation ongoing of 248 square kilometers of offshore 3D seismic.
During the fourth quarter of 2013 commenced the acquisition of a combined 330 kilometers conventional and high resolution 2D seismic program.
Rovuma Onshore Block, Mozambique
Completed the acquisition, processing and interpretation of 1,016 kilometers of onshore 2D seismic over the northern section of the Block.
Commenced pre-drilling planning activities including the procurement of long lead items, site preparation and well planning in advance of the fully funded 2014 exploration drilling campaign.
Resource Assessment
Results of an independent resource assessment by RPS Energy ("RPS") of the Company's Mozambique and Tanzania assets were announced during Q3 2013. Certain key extracts from RPS' Competent Person's Report ("CPR") follow and the complete updated CPR is available for download on the Company's website at www.wentworthresources.com:
Figures quoted are Wentworth's working interest share | P90 | P50 | Mean | P10 |
Rovuma Onshore, Mozambique (GAS CASE) | ||||
GIIP | 551 Bscf | 831 Bscf | 901 Bscf | 1,340 Bscf |
Prospective Resources (Unrisked)(1) | 330 Bscf | 504 Bscf | 550 Bscf | 825 Bscf |
Rovuma Onshore, Mozambique (OIL CASE) | ||||
GIIP | 425 Bscf | 594 Bscf | 618 Bscf | 834 Bscf |
OIIP | 12 MMstb | 88 MMstb | 140 MMstb | 325 MMstb |
Prospective Resources - gas (Unrisked)(1) | 254 Bscf | 359 Bscf | 375 Bscf | 513 Bscf |
Prospective Resources - oil (Unrisked) (1) | 3 MMstb | 22 MMstb | 32 MMstb | 90 MMstb |
(1) Stochastic aggregation assuming all prospects are successful. The probability of this occurring is the product of the individual GPoS of all prospects and is extremely small. The individual prospect GPoS estimates are included in the CPR.
RPS considers that the prospects' hydrocarbons are more likely to be gas than oil. However, there is some possibility that the Tembo prospect may contain oil (estimated by RPS to be about 30% - 40%), referred to above as "OIL CASE".
Figures quoted are Wentworth's working interest share | P90 | P50 | Mean | P10 |
Mnazi Bay, Tanzania | ||||
GIIP - contingent | 117 Bscf | 285 Bscf | 355 Bscf | 676 Bscf |
Contingent Resources (Unrisked)(1)(2) | 87 Bscf | 213 Bscf | 266 Bscf | 509 Bscf |
GIIP - prospective | 672 Bscf | 958 Bscf | 993 Bscf | 1,357 Bscf |
Prospective Resources (Unrisked)(1) | 425 Bscf | 614 Bscf | 637 Bscf | 879 Bscf |
(1) Stochastic aggregation assuming all prospects are successful. The probability of this occurring is the product of the individual GPoS of all prospects and is extremely small. The individual prospect GPoS estimates are included in the CPR.
(2) Contingent resource estimates are for raw gas.
Outlook
The construction of the Mtwara to Dar es Salaam pipeline is progressing well and the Company expects to begin selling natural gas into the pipeline in Q1 2015. The Company continues to work towards the signing of the GSA with the Tanzanian government.
Processing and interpretation of this new seismic data during 2014 is expected to support future appraisal/development and exploration drilling which is anticipated to commence in Q4 2014 or Q1 2015.
Drilling of two back-to-back exploration wells in the Rovuma Onshore License in Mozambique, with an optional third well. The first well is expected to spud in Q2 and take approximately 2 months to complete.
The Company has the funds available to meet its currently planned capital commitments for the year 2014 including acquiring onshore 2D seismic in Tanzania, pre-drilling planning of one exploration or development well in Tanzania and two firm plus one optional exploration well in the Rovuma Onshore Block in Mozambique.
Geoff Bury, Managing Director, commented:
"We are pleased with the progress being made on thepipelineconnecting our gas fields in the Mtwara region of Tanzania to the capital Dar es Salaam. This pipeline will open up new markets for our natural gasand we look forward to it coming on-stream in Q1 2015.Following the successful equity financing concluded during Q4 2013, Wentworth has a solid balance sheet and is fully funded for our planned 2014 exploration activities. Exploration drilling in our Mozambique block is expected to commence in Q2 2014 and positive results could have a significant impact on the value of our assets. We look forward to updating shareholders on these exciting activities in due course."
Enquiries: | ||
Wentworth |
Lance Mierendorf, Chief Financial Officer | lance.mierendorf@wentworthresources.com +1 403 680 8773 |
Eric Fore, Finance & Investor Relations Manager | etf@wentworthresources.com +971 (0) 50 458 0422 | |
Swedbank First Securities | Broker(Norway) | +47 23 23 80 00 |
Ove Gusevik | ||
Jarand Lønne | ||
Crux Kommunikasjon |
Investor Relations Adviser (Norway) | +47 995 138 91 |
Jan Petter Stiff | ||
Fredrik Eeg | ||
Panmure Gordon | AIM Nominated Adviser and Broker (UK) | +44 (0) 20 7886 2500 |
Katherine Roe | ||
Callum Stewart | ||
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 |
Ben Colegrave | ||
Chris Sim | ||
Instinctif Partners | Investor Relations Adviser (UK) | +44 (0) 20 7457 2020 |
Catherine Wickman | ||
Harry Cameron | ||
Notes and Glossary
Partners in the Mnazi Bay PSA are:
Maurel et Prom: 60.075% (Operator) through exploration; 48.06% production
Wentworth:39.925% through exploration; 31.94% production
TPDC: 20% production
Partners in the Rovuma Onshore License are:
Anadarko: 42% (Operator) through exploration; 35.7% production
Wentworth:13.64% through exploration; 11.59% production
Maurel et Prom: 32.6% through exploration; 27.71% production
PTTEP: 11.76% through exploration; 10% production
ENH: 15% production
The terms 'Discovered and Undiscovered Oil or Gas Initially-in-Place' are used in accordance with the SPE Petroleum Resources Management System classification of 2007. Previously reported Contingent and Prospective Gas Initially-in-Place numbers are equivalent to the Discovered and Undiscovered GIIP classification.
This announcement and the Competent Person's Report have been prepared using the Standard of SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007.
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.
Bscf | billion standard cubic feet |
Contingent Resources | Quantities of petroleum estimated, as at a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies |
GPoS | Geological probability of success |
GIIP | Gas Initially In Place |
MMstb | million barrels |
OIIP | Oil Initially in Place |
Prospective Resources | Deposits that are estimated, on a given date, to be potentially recoverable from accumulations yet to be discovered |
PSA | Production sharing agreement |
P90, P50, Mean and P10 | the extent to which an event is likely to occur, measured by the ratio of the favorable cases to the whole number of cases possible (probability of 90%, 50%, arithmetic average and 10%, respectively) |
Financial Statements
The following primary statements have been extracted from the 2013 audited consolidated financial statement which are located on the Company's website at www.wentworthresources.com.
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Financial Position
United States dollars $000s, unless otherwise stated
December 31, 2013 |
December 31, 2012 | |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 14,501 | 9,352 |
Short-term investments | 23,176 | - |
Trade and other receivables | 1,845 | 2,376 |
Prepayments, deposits and advances to partners | 1,674 | 2,028 |
Current portion of long-term receivables | 658 | 657 |
Other receivables - power | - | 11,584 |
41,854 | 25,997 | |
Non-current assets | ||
Long-term receivables | 28,661 | 23,151 |
Exploration and evaluation assets | 50,636 | 44,591 |
Property, plant and equipment | 18,498 | 17,974 |
97,795 | 85,716 | |
Total assets | 139,649 | 111,713 |
LIABILITIES | ||
Current liabilities |
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Comprehensive Income / (Loss)
United States dollars $000s, unless otherwise stated
Year ended December 31, | |||
2013 | 2012 | ||
Continuing operations | |||
Total revenue | 955 | 820 | |
Operating expenses | |||
Production and operating | (1,656) | (1,404) | |
General and administrative | (7,931) | (7,829) | |
Share based compensation | (362) | (682) | |
Depreciation and depletion | (451) | (488) | |
Gain from sale of oil and gas assets | - | 29,799 | |
(Loss)/income from operating activities | (9,445) | 20,216 | |
Gain on derivative financial liability | 610 | 1,298 | |
Finance income | 5,266 | 3,718 | |
Finance costs | (6,420) | (3,246) | |
Net (loss)/income before discontinued operations | (9,989) | 21,986 | |
Discontinuedoperations | |||
Income from discontinued operations | - | 2,957 | |
Net (loss)/income and comprehensive (loss)/income | (9,989) | 24,943 | |
Net (loss)/income and comprehensive (loss)/income attributable to: | |||
Equity holders of the parent | (9,989) | 24,739 | |
Non-controlling interest | - | 204 | |
(9,989) | 24,943 | ||
Net (loss)/income per ordinary share - continuing operations | |||
Basic (US$/share) | (0.11) | 0.27 | |
Diluted (US$/share) | (0.11) | 0.25 | |
Net income per ordinary share - discontinued operations | |||
Basic and diluted (US$/share) | - | 0.04 | |
Net (loss)/income per ordinary share | |||
Basic diluted (US$/share) | (0.11) | 0.31 | |
Diluted (US$/share) | (0.11) | 0.29 |
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Changes in Equity
United States dollars $000s, unless otherwise stated
Number of shares | Share capital | Equity reserve |
Accumulated deficit | Equity attributable to shareholders | Non-controlling interest | Total equity | |
$ | $ | $ | $ | $ | $ | ||
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Cash Flows
United States dollars $000s, unless otherwise stated
Year ended December 31, | |||
2013 | 2012 | ||
Operating activities | |||
Net (loss)/income for the year | (9,989) | 24,943 | |
Adjustments for: | |||
Share based compensation | 362 | 682 | |
Depreciation and depletion | 451 | 622 | |
Finance cost/(income) | 679 | (580) | |
Gain on derivative financial liability | (610) | (1,298) | |
Gain from sale of oil and gas assets | - | (29,799) | |
Gain on sale of discontinued operations | - | (3,041) | |
Unrealized foreign exchange | 18 | (183) | |
Change in non-cash working capital | 1,270 | (8,590) | |
Cash used in operating activities | (7,819) | (17,244) | |
Investing activities | |||
Additions to evaluation and exploration assets | (6,045) | (11,252) | |
Additions to property, plant and equipment | (975) | (403) | |
Proceeds from sale of oil and gas assets | - | 18,860 | |
Proceeds from sale of discontinued operations | - | 13,500 | |
Increase in short-term investments | (23,176) | - | |
Interest income received | 70 | 60 | |
Net reduction/(increase) in long-term receivable | 301 | (1,117) | |
Acquisition of non-controlling interest | - | (1,622) | |
Change in non-cash working capital | 1,958 | 2,175 | |
Cash (used in)/provided by investing activities | (27,867) | 20,201 | |
Financing activities | |||
Issue of share capital, net of share issue costs | 41,923 | - | |
Issue of share capital on exercise of share options | 267 | 21 | |
Proceeds from long-term loan, net of costs | 9,887 | - | |
Repayment of long-term loans | (10,036) | (1,232) | |
Interest paid | (561) | (634) | |
Repayment of other long-term liabilities | (645) | (833) | |
Cash provided by/(used in) financing activities | 40,835 | (2,678) | |
Net change in cash and cash equivalents | 5,149 | 279 | |
Cash and cash equivalents, beginning of the year | 9,352 | 9,073 | |
Cash and cash equivalents, end of the year | 14,501 | 9,352 |
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.
Q4 2013 MDA and Financial Statements
Annual 2013 MDA and Financial Statements
distributed by |