May 30, 2017 - 2:00 AM EDT
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Wentworth Resources Limited : Q1 2017 Financial Statements and MD&A
 

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

 
[email protected]
+1 403 680 8773
  Katherine Roe
Vice President Corporate Development & Investor Relations

 
[email protected]
+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) [email protected]
+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.




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
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


Source: Thomson Reuters ONE (May 30, 2017 - 2:00 AM EDT)

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