PRESS RELEASE 23 March 2017
Wentworth Resources Limited
("Wentworth" or the "Company")
2016 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 audited financial results for the year ended 31 December 2016.
The following should be read in conjunction with the 2016 Management Discussion and Analysis ("MD&A") and Consolidated Financial Statements which are available on the Company's updated website at http://www.wentworthresources.com .
Further to the announcement of 28 February 2017 regarding the unaudited Q4 2016 Financial Statements and MD&A, an independent reserves assessment of the Company's Tanzanian gas assets was completed and announced on 9 March 2017 and an Annual Statement of Reserves 2016 has been included in the 2016 MD&A.
2016 HIGHLIGHTS
Reserves
- Independent reserves evaluation attributed Wentworth's share of Proved + Probable (2P) reserves valued at US$180.3 million NPV (10%) after tax at December 31, 2016 to the Company's gas fields in Tanzania.
- Net 2P reserves were 115.9 Bscf (19.3 MMbbl BOE) which were higher than 2015 after taking into consideration gas production during the year.
Financial
- Gas sales revenue of $11.75 million up 153 percent from 2015 due to the commencement of gas sales to the new Mtwara to Dar es Salaam gas pipeline during Q3 2015.
- Net loss of $5.09 million ($0.03 per share) compared to a 2015 net profit of $27.03 million ($0.17 per share); 2015 profit includes a non-cash deferred tax recovery of $34.34 million.
- Development and exploration capital expenditures of $2.06 million and $2.40 million, respectively during 2016.
- Cash and cash equivalents on hand of $0.98 million compared with $2.75 million on hand at December 31, 2015.
- Working capital was $4.96 million compared to $11.98 million at December 31, 2015.
- Reduced outstanding debt to $20.67 million (December 31, 2015 - $26.0 million) following $5.33 million of principal payments during the year.
- Subsequent to year end, amended the timing of principal payments on the existing $20.0 million credit facility and secured a new $2.5 million credit facility for working capital purposes.
Operational
Tanzania
- The Mnazi Bay field achieved average gross daily gas production of 43.0 MMscf/d compared to 15.7 MMscf/d during 2015.
- Expansion of the liquid separation units and gas processing facilities at Mnazi Bay was ongoing during the year end with commissioning and full operations expected in Q2 2017.
Mozambique
- Received Mozambique Government approval of a two-year appraisal program for the Tembo gas discovery and increasing Wentworth's participation interest in the Tembo appraisal area of the Rovuma Onshore Block from 11.59 per cent to 85 per cent. Wentworth has been appointed Operator.
- Completed reprocessing of approximately 1,000 km of 1984/1985 vibroseis data which represents all 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.
Geoff Bury, Managing Director, commented:
"We are very pleased with the updated reserve report covering our gas reserves in Tanzania which more than underpins the quality of our producing asset. We expect production to average between 40 and 50 MMscf/d throughout 2017 before seeing a material increase in volumes starting in 2018 with the addition of newly constructed and commissioned power plants in Dar es Salaam. With a fully invested field and all infrastructure in place to more than double current production, we are well positioned to benefit from increasing demand from current, stable levels. "
| 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 | |
| Crux Advisers | Investor Relations Adviser (Norway) | +47 909 808 48 |
| 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 | ||
Consolidated Financial Statements
The following primary statements have been extracted from the 2016 consolidated financial statements which are located on the Company's website at www.wentworthresources.com .
WENTWORTH RESOURCES LIMITED Consolidated Statements of Financial Position United States $000s, unless otherwise stated
| December 31, 2016 | December 31, 2015 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 979 | 2,746 |
| Trade and other receivables | 6,699 | 3,253 |
| Prepayments, deposits and advances to partners | 187 | 841 |
| Current portion of long-term receivables | 12,283 | 18,190 |
| 20,148 | 25,030 | |
| Non-current assets | ||
| Long-term receivables | 18,034 | 18,897 |
| Exploration and evaluation assets | 45,538 | 43,141 |
| Property, plant and equipment | 93,366 | 95,168 |
| Deferred tax asset | 31,145 | 34,341 |
| 188,083 | 191,547 | |
| Total assets | 208,231 | 216,577 |
| LIABILITIES | ||
| Current liabilities | ||
| Trade and other payables | 8,675 | 6,269 |
| Current portion of long-term loans | 5,258 | 5,270 |
| Current portion of other liability | 1,260 | 1,508 |
| 15,193 | 13,047 | |
| Non-current liabilities | ||
| Long-term loans | 15,254 | 20,512 |
| Other liability | 1,100 | 1,634 |
| Decommissioning provision | 773 | 973 |
| 17,127 | 23,119 | |
| Equity | ||
| Share capital | 411,493 | 411,493 |
| Equity reserve | 26,275 | 25,683 |
| Accumulated deficit | (261,857) | (256,765) |
| 175,911 | 180,411 | |
| Total liabilities and equity | 208,231 | 216,577 |
WENTWORTH RESOURCES LIMITED Consolidated Statements of Comprehensive Loss United States $000s, unless otherwise stated
| Year ended December 31, | ||
| 2016 | 2015 | |
| Total revenue | 11,750 | 4,637 |
| Operating expenses | ||
| Production and operating | (3,371) | (3,214) |
| General and administrative | (5,397) | (6,367) |
| Depreciation and depletion | (3,864) | (1,707) |
| Share based compensation | (592) | (767) |
| Loss from operating | (1,474) | (7,418) |
| Finance income | 4,693 | 4,818 |
| Finance costs | (5,115) | (4,707) |
| Loss before tax | (1,896) | (7,307) |
| Deferred tax (expense)/recovery | (3,196) | 34,341 |
| Net (loss)/profit and comprehensive (loss)/profit | (5,092) | 27,034 |
| Net (loss)/profit per ordinary share | ||
| Basic and diluted (US$/share) | (0.03) | 0.17 |
WENTWORTH RESOURCES LIMITED Consolidated Statements 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 | - | - | - | 27,034 | 27,034 |
| Share based compensation | - | - | 767 | - | 767 |
| Issue of share capital | 15,412,269 | 7,639 | - | - | 7,639 |
| Share issue costs | - | (371) | - | - | (371) |
| Balance at December 31, 2015 | 169,534,969 | 411,493 | 25,683 | (256,765) | 180,411 |
| Balance at December 31, 2015 | 169,534,969 | 411,493 | 25,683 | (256,765) | 180,411 |
| Net loss and comprehensive loss | - | - | - | (5,092) | (5,092) |
| Share based compensation | - | - | 592 | - | 592 |
| Balance at December 31, 2016 | 169,534,969 | 411,493 | 26,275 | (261,857) | 175,911 |
WENTWORTH RESOURCES LIMITED Consolidated Statements of Cash Flows United States $000s, unless otherwise stated
| Year ended December 31, | ||
| 2016 | 2015 | |
| Operating activities | ||
| Net (loss)/profit for the period | (5,092) | 27,034 |
| Adjustments for: | ||
| Depreciation and depletion | 3,864 | 1,707 |
| Finance costs/(income), net | 422 | (111) |
| Deferred tax expense/(recovery) | 3,196 | (34,341) |
| Share based compensation | 592 | 767 |
| Change in non-cash working capital | (2,506) | 175 |
| Net cash generated from/(utilized in) operating activities | 476 | (4,769) |
| Investing activities | ||
| Acquisitions of evaluation and exploration assets | (2,371) | (10,299) |
| Acquisitions of property, plant and equipment | (2,347) | (12,926) |
| Reductions of/(additions to) long-term receivable | 10,763 | (1,116) |
| Interest income | - | 7 |
| Net cash from/(used in) investing activities | 6,045 | (24,334) |
| Financing activities | ||
| Proceeds from long-term loan | - | 20,000 |
| Repayment of long-term loan | (5,333) | - |
| Interest paid | (2,073) | (906) |
| Issue of share capital, net of issue costs | - | 7,268 |
| Payment of other liability | (882) | - |
| Net cash (used in)/from financing activities | (8,288) | 26,362 |
| Net change in cash and cash equivalents | (1,767) | (2,741) |
| Cash and cash equivalents, beginning of the period | 2,746 | 5,487 |
| Cash and cash equivalents, end of the period | 979 | 2,746 |
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.
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