PRESS RELEASE 30 May 2017
Wentworth Resources Limited
("Wentworth" or the "Company")
Q1 2017 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 2017.
The following should be read in conjunction with the Q1 2017 Management Discussion and Analysis and Financial Statements which are available on the Company's updated website at http://www.wentworthresources.com .
Financial
- Gas sales revenue of $2.94 million for the quarter, compared to $3.21 million in Q1 2016.
- Net loss of $0.41 million in Q1 2017 compared to a net loss of $0.91 million in Q1 2016.
- Capital expenditures of $0.68 million compared to $0.66 million during Q1 2016.
- Cash and cash equivalents on hand of $0.46 million compared with $0.98 million on hand at December 31, 2016.
- Working capital was $5.50 million compared to $4.96 million at December 31, 2016.
- Amended the timing of principal payments on the existing $20.0 million credit facility and secured a new $2.5 million overdraft facility for working capital purposes.
Operational
Tanzania
- The Mnazi Bay field achieved average gross daily gas production during the quarter of 42.8 MMscf/d compared to 47.6 MMscf/d during Q1 2016.
Mozambique
- Reprocessing of 1,000 kilometers of existing 2-D vibroseis seismic data was completed.
- Mapping and re-interpretation of seismic is progressing and will be complete during Q2 2017.
- Designed a new 500 km seismic program and in the process of identifying the location of an appraisal well.
- Commenced process of securing an industry partner to participate in the appraisal program.
Geoff Bury, Managing Director, commented:
"First quarter production was in line with expectations and we continue to expect 2017 production to average between 40 and 50 MMscf/d. We have worked closely with our primary external lender to restructure the timing of principal repayments to better align with anticipate production levels. Earlier this month we strengthened the balance sheet with funds from a private placement which will allow us to manage working capital during a temporary period of possible slower payments from customers and to advance our gas appraisal asset in Mozambique.
Improving the timeliness of collections from TPDC and TANESCO is of paramount importance as well as maintaining support from and close cooperation with our creditors and external lenders. As a result, the next few quarters will be challenging for the Company after which we should be on solid footing to benefit greatly from an anticipated step up in gas demand starting early 2018.
As a near term catalyst, we look to determine the upside potential of the Tembo gas discovery and secure a farm-in partner to participate in the appraisal program."
A conference call for investors, analysts and other interested parties will be held that day at 06:00 MST (Calgary) / 13.00 BST (London) / 14.00 CEST (Oslo). Call in numbers:
Call in numbers:
Canada: +1 866 992 3610
Norway: + 800 16886
United States: +1 866 389 9778
International/ United Kingdom Dial In: +44 (0) 1452 542303
Participants will be able to enter the call by referencing "Wentworth Q1 results" and will be asked for their name and company.
| 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 | ||
Financial Statements
The following primary statements have been extracted from the Q1 2017 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, 2017 | December 31, 2016 | ||
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 455 | 979 | |
| Trade and other receivables | 9,378 | 6,699 | |
| Prepayments and deposits | 148 | 187 | |
| Current portion of long-term receivables | 10,501 | 12,283 | |
| 20,482 | 20,148 | ||
| Non-current assets | |||
| Long-term receivables | 16,758 | 18,034 | |
| Exploration and evaluation assets | 45,995 | 45,538 | |
| Property, plant and equipment | 92,696 | 93,366 | |
| Deferred tax asset | 31,865 | 31,145 | |
| 187,314 | 188,083 | ||
| Total assets | 207,796 | 208,231 | |
| LIABILITIES | |||
| Current liabilities | |||
| Trade and other payables | 8,703 | 8,675 | |
| Current portion of long-term loans | 5,258 | 5,258 | |
| Current portion of other liability | 1,019 | 1,260 | |
| 14,980 | 15,193 | ||
| Non-current liabilities | |||
| Long-term loans | 15,188 | 15,254 | |
| Other liability | 1,222 | 1,100 | |
| Decommissioning provision | 796 | 773 | |
| 17,206 | 17,127 | ||
| Equity | |||
| Share capital | 411,493 | 411,493 | |
| Equity reserve | 26,383 | 26,275 | |
| Accumulated deficit | (262,266) | (261,857) | |
| 175,610 | 175,911 | ||
| Total liabilities and equity | 207,796 | 208,231 | |
WENTWORTH RESOURCES LIMITED Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss United States $000s, unless otherwise stated
| Three months ended March 31, | |||||
| 2017 | 2016 | ||||
| Total revenue | 2,944 | 3,206 | |||
| Operating expenses | |||||
| Production and operating | (910) | (897) | |||
| General and administrative | (930) | (1,512) | |||
| Depreciation and depletion | (894) | (1,114) | |||
| Share based compensation | (108) | (228) | |||
| Profit/(loss) from operations | 102 | (545) | |||
| Finance income | 635 | 1,285 | |||
| Finance costs | (1,866) | (1,226) | |||
| Loss before tax | (1,129) | (486) | |||
| Deferred tax recovery/(expense) | 720 | (419) | |||
| Net loss and comprehensive loss | (409) | (905) | |||
| Net loss per ordinary share | |||||
| Basic and diluted (US$/share) | - | (0.01) | |||
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, 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 |
| Balance at December 31, 2016 | 169,534,969 | 411,493 | 26,275 | (261,857) | 175,911 |
| Net loss and comprehensive loss | - | - | - | (409) | (409) |
| Share based compensation | - | - | 108 | - | 108 |
| Balance at March 31, 2017 | 169,534,969 | 411,493 | 26,383 | (262,266) | 175,610 |
WENTWORTH RESOURCES LIMITED Unaudited Condensed Consolidated Interim Statement of Cash Flows United States $000s, unless otherwise stated
| Three months ended March 31, | |||||
| 2017 | 2016 | ||||
| Operating activities | |||||
| Net loss for the period | (409) | (905) | |||
| Adjustments for: | |||||
| Depreciation and depletion | 894 | 1,114 | |||
| Finance costs/(income), net | 1,231 | (59) | |||
| Deferred tax (recovery)/expense | (720) | 419 | |||
| Share based compensation | 108 | 228 | |||
| Change in non-cash working capital | (2,290) | (939) | |||
| Net cash utilized in operating activities | (1,186) | (142) | |||
| Investing activities | |||||
| Additions to evaluation and exploration assets | (444) | - | |||
| Additions to property, plant and equipment | (217) | - | |||
| Reductions of long-term receivable | 2,255 | 2,596 | |||
| Net cash from investing activities | 1,594 | 2,596 | |||
| Financing activities | |||||
| Principal payments | (14) | - | |||
| Debt restructuring fee | (83) | - | |||
| Interest paid | (784) | (773) | |||
| Payment of other liability | (51) | (373) | |||
| Net cash used in financing activities | (932) | (1,146) | |||
| Net change in cash and cash equivalents | (524) | 1,308 | |||
| Cash and cash equivalents, beginning of the period | 979 | 2,746 | |||
| Cash and cash equivalents, end of the period | 455 | 4,054 | |||
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, 2016, 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.
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