Wentworth Resources Limited : Q1 2016 Financial Statements and MD&A
GlobeNewswire
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 (WRL.OL) and London Stock Exchange (WRL.OL) 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."
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.
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#2011986
