Wentworth Resources Limited, the Oslo Stock Exchange (WRL.OL) and London Stock Exchange (WRL.L) listed independent, East Africa-focused oil & gas company, today announces an update on its financial position.
Further to the announcement on 26 February 2015 of the Company`s Q4 2014 Financial Statements and MD&A, the Company has subsequently drawn an amount of $5.6 million on an existing $20 million credit facility (the "Facility") with a Tanzania-based bank, TIB Development Bank Limited ("TIB"), relating to Mnazi Bay Concession development and operating costs that were incurred and paid for by the Company prior to executing the Facility in December 2014. These unrestricted funds will be used for working capital purposes and significantly improves the Company`s short-term liquidity.
Wentworth expects the remaining amount of the Facility to be sufficient to meet ongoing Mnazi Bay Concession development capital activities (drilling of the MB-4 development well and construction of field infrastructure tying in our existing gas fields to the government-owned pipeline infrastructure) that are planned for the first half of 2015. During the second half of 2015, Wentworth`s share of the cost of development capital activities are expected to be funded from internally generated cash flow.
"We are pleased to have TIB Development Bank as a Tanzania-based partner supporting our activities as we move towards being a key player in the oil and gas sector in Tanzania. TIB have demonstrated a high level of understanding of and commitment to Wentworth and the emerging energy industry in Tanzania. We are now in a stronger financial position as we move closer to first cash flow from sales to the new pipeline in Tanzania."
Wentworth Resources is a publicly traded (OSE:WRL, AIM:WRL), independent oil & gas company with: natural gas production; midstream assets; and large-scale gas monetisation opportunities, all in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique.
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.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX 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 HUG#1899270
