WENTWORTH RES PRESS RELEASE
12 May 2016
Wentworth Resources Limited
("Wentworth" or the "Company")
Q1 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 31 March 2016.
The following should be read in conjunction with the Q1 2016 Management Discussion and Analysis and Financial Statements which are available on the Company's updated website at http://www.wentworthresources.com.
Q1 2016 HIGHLIGHTS
Financial
- Gas sales revenue of $3.21 million for the quarter, compared to $0.27 million in Q1 2015.
- Net loss for the quarter of $0.91 million, compared to a net loss of $2.72 million in Q1 2015.
- Exploration and development capital expenditures of $0.66 million compared to $9.55 million during Q1 2015.
- Increase in cash and cash equivalents to $4.05 million at March 31, 2016 from $2.75 million on hand at December 31, 2015.
- March 31, 2016 working capital was $9.02 million compared to $11.98 million at December 31, 2015.
Operational
Tanzania
- Achieved average gross daily gas production of 48 MMscf/d for the first quarter and reached 65 MMscf/d on 31 March.
- Mnazi Bay wells are performing exceptionally well and are capable of delivering volumes in excess of current production.
- Minimal capital expenditure on field development incurred in the first quarter of 2016.
Mozambique
- Approval from the Ministry of Energy and Minerals ("MIREM") of the Mozambique Government for a proposed appraisal programme for the Tembo-1 gas discovery, increasing Wentworth's participation interest in the Rovuma Onshore Concession from 11.59 percent to 85 percent and appointing Wentworth as operator is pending.
Geoff Bury, Managing Director, commented:
"The newly built and previously existing power generation facilities which utilize the Company's natural gas have all been tested and fully commissioned and refurbished where necessary. Over the coming months, production is expected to stabilize between 70-80 MMscf/d and maintain this level for the remainder of 2016. We continue to build cash reserves from internally generated cash flows and strengthen our balance sheet while looking for strategic opportunities to further enhance shareholder value."
| 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 | ||
| 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 Q1 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
| March 31, 2016 | December 31, 2015 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 4,054 | 2,746 |
| Trade and other receivables | 4,962 | 3,253 |
| Prepayments, deposits and advances to partners | 1,213 | 841 |
| Current portion of long-term receivables | 16,368 | 18,190 |
| 26,597 | 25,030 | |
| Non-current assets | ||
| Long-term receivables | 19,126 | 18,897 |
| Exploration and evaluation assets | 43,323 | 43,141 |
| Property, plant and equipment | 94,536 | 95,168 |
| Deferred tax asset | 33,922 | 34,341 |
| 190,907 | 191,547 | |
| Total assets | 217,504 | 216,577 |
| LIABILITIES | ||
| Current liabilities | ||
| Trade and other payables | 7,819 | 6,269 |
| Current portion of long-term loans | 8,596 | 5,270 |
| Current portion of other liability | 1,158 | 1,508 |
| 17,573 | 13,047 | |
| Non-current liabilities | ||
| Long-term loans | 17,205 | 20,512 |
| Other liability | 1,972 | 1,634 |
| Decommissioning provision | 1,020 | 973 |
| 20,197 | 23,119 | |
| Equity | ||
| Share capital | 411,493 | 411,493 |
| Equity reserve | 25,911 | 25,683 |
| Accumulated deficit | (257,670) | (256,765) |
| 179,734 | 180,411 | |
| Total liabilities and equity | 217,504 | 216,577 |
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss
United States $000s, unless otherwise stated
| Three months ended March 31, | ||
| 2016 | 2015 | |
| Total revenue | 3,206 | 272 |
| Operating expenses | ||
| Production and operating | (897) | (504) |
| General and administrative | (1,512) | (1,497) |
| Share based compensation | (228) | (306) |
| Depreciation and depletion | (1,114) | (106) |
| Loss from operating activities | (545) | (2,141) |
| Finance income | 1,285 | 1,307 |
| Finance costs | (1,226) | (1,882) |
| Net loss and comprehensive loss before tax | (486) | (2,716) |
| Deferred tax expense | (419) | - |
| Net loss and comprehensive loss | (905) | (2,716) |
| Net loss per ordinary share | ||
| Basic and diluted (US$/share) | (0.01) | (0.02) |
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 | - | - | - | (2,716) | (2,716) |
| Share based compensation | - | - | 306 | - | 306 |
| Balance at March 31, 2015 | 154,122,700 | 404,225 | 25,222 | (286,515) | 142,932 |
| 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 |
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Cash Flows
United States $000s, unless otherwise stated
| Three months ended March 31, | |||
| 2016 | 2015 | ||
| Operating activities | |||
| Net income/(loss) for the period | (905) | (2,716) | |
| Adjustments for: | |||
| Share based compensation | 228 | 306 | |
| Depreciation and depletion | 1,114 | 106 | |
| Finance loss/(income), net | (59) | 575 | |
| Deferred tax expense | 419 | - | |
| Change in non-cash working capital | (939) | (70) | |
| Cash used in operating activities | (142) | (1,799) | |
| Investing activities | |||
| Acquisitions of evaluation and exploration assets | - | (6,733) | |
| Acquisitions of property, plant and equipment | - | (2,478) | |
| Reductions of/(additions to) long-term receivable | 2,596 | (523) | |
| Cash (used in)/provided by investing activities | 2,596 | (9,734) | |
| Financing activities | |||
| Proceeds from long-term loan | - | 10,480 | |
| Interest paid | (773) | - | |
| Payment of other liability | (373) | - | |
| Cash provided by/(used in) financing activities | (1,146) | 10,480 | |
| Net change in cash and cash equivalents | 1,308 | (1,053) | |
| Cash and cash equivalents, beginning of the period | 2,746 | 5,487 | |
| Cash and cash equivalents, end of the period | 4,054 | 4,434 | |
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, 2014, 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.
Q1 2016 Financial Statements
Q1 2016 MDA
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