Wentworth Resources Limited : Q1 2017 Financial Statements and MD&A

GlobeNewswire


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 (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 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.

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