Wentworth Resources Ltd Wentworth Resources Limited : Q3 2016 Financial Statements And Md&A

 
TIDMWRL 
 
 
 
 
 
 
   PRESS RELEASE 
 
   15 November 2016 
 
   Wentworth Resources Limited 
 
   ("Wentworth" or the "Company") 
 
   Q3 2016 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 30 
September 2016. 
 
   The following should be read in conjunction with the Q3 2016 Management 
Discussion and Analysis and Financial Statements which are available on 
the Company's updated website at http://www.wentworthresources.com. 
 
   Q3 2016 HIGHLIGHTS 
 
   Financial 
 
 
   -- Gas sales revenue of $2.38 million for the quarter (Q3 2015: $0.97 
      million) 
 
   -- Loss before tax for the quarter of $0.9 million (Q3 2015: $1.25 million) 
 
 
   -- Exploration, appraisal and development capital expenditures of $0.97 
      million (Q3 2015: $1.51 million) 
 
   -- Outstanding debt reduced to $21.7 million following a $3.33 million 
      principal payment during the period 
 
   -- Cash and cash equivalents on hand of $3.73 million at September 30, 2016 
      (December 31, 2015: $2.75 million) 
 
   -- Working capital was $1.59 million at September 30, 2016 (December 31, 
      2015: $11.98 million) 
 
   -- Continue to make progress to expand the Company's external debt capacity 
      of up to $50 million 
 
 
   Operational 
 
   Tanzania 
 
 
   -- Achieved average gross daily gas production for the third quarter of 34 
      MMscf/d down from 51 MMscf/d during Q2 2016. Contributing to the 
      production decline from Q2 was the suspension of operations at the 
      Symbion gas-fired power plant as a result of a dispute with the Tanzania 
      Government, overhauls and commissioning of gas turbines at Ubungo II and 
      Kinyerezi I power stations, and allocation of gas demand to industry 
      competitors at the Songo Songo gas processing facility. The year-to-date 
      average gross daily production is 44 MMscf/d 
 
   -- Expansion of the liquid separation units and gas processing facilities at 
      Manzi Bay was ongoing during Q3 2016 with commissioning and full 
      operations expected in the coming months 
 
   -- Potential increase in industrial consumer demand includes supplying the 
      Dangote cement plant (30-40 MMscf/d) and resumption of operations at the 
      Symbion power plant (20 MMscf/d) 
 
 
   Mozambique 
 
 
   -- Engaged a third-party consulting firm to reprocess approximately 1,000 km 
      of 1984/1985 vibroseis data which represents all of the existing regional 
      seismic coverage over the Tembo appraisal area 
 
   -- Finalized the design details of a new 2D seismic survey of approximately 
      700 km data. This survey will further Wentworth's ability to identify a 
      suitable appraisal location for an appraisal well in 2018 
 
   -- Ongoing analysis of existing seismic and well data in Mozambique and 
      Tanzania to further our understanding of the regional Cretaceous geologic 
      section 
 
   -- Once the estimated cost of the new 2D seismic survey and preliminary cost 
      of an appraisal well are determined, it is the Company's intention to 
      secure an industry partner prior to commencing further capital activity 
      associated with the appraisal program 
 
 
   Geoff Bury, Managing Director, commented: 
 
   "Q3 2016 gas sales volumes were impacted by a combination of factors 
that were primarily influenced by contractual issues beyond the control 
of the Mnazi Bay joint venture partners. We anticipate base demand for 
the remainder of 2016 and all of 2017 to be between 40 and 50 MMscf/d 
with possible significant increases originating from gas sales to 
industrial consumers and resumption of operations at the idle gas-fired 
Symbion power generation plant. 
 
   I am also pleased that progress continues to be made to bolster the 
balance sheet by looking to refinance our existing debt facilities and 
expand the debt capacity to provide further financial flexibility going 
forward.  We continue to feel confident in the future build up in 
demand; as the new power plants, Kinyerezi-1 expansion and Kinyerezi II, 
are under construction and expected to be commissioned and operational 
during 2018, which coupled with increased industrial demand, provides 
exceptional long-term potential for the Company." 
 
   A conference call for investors, analysts and other interested parties 
will be held the same day at 06:00 MST (Calgary) / 13:00 GMT (London) / 
14:00 CET (Oslo).  Call in numbers: 
 
   International/ United Kingdom Dial In: [phone] 
 
   Canada: [phone] 
 
   Norway: [phone] 
 
   United States: [phone] 
 
   The participants will be asked for their name, company and confirmation 
code. The Wentworth Resources confirmation code is: 1690174. 
 
 
 
 
Enquiries: 
 
              Lance Mierendorf,                                            [e-mail] 
Wentworth      Chief Financial Officer                                                 [phone] 
              Katherine Roe                                                 [e-mail] 
               Vice President Corporate Development & Investor Relations               [phone] 
Swedbank 
 First 
 Securities   Broker (Norway)                                                                      [phone] 
              Ove Gusevik 
              Jarand Lønne 
Crux          Investor Relations Adviser 
 Advisers      (Norway)                                                                             [phone] 
              Jan Petter Stiff 
              Carl Bachke 
Stifel 
 Nicolaus 
 Europe 
 Limited      AIM Nominated Adviser and Broker (UK)                                           [phone] 
              Callum Stewart 
               Nicholas Rhodes 
              Ashton Clanfield 
FirstEnergy 
 Capital      Broker (UK)                                                                     [phone] 
 Hugh Sanderson 
FTI           Investor Relations Adviser (UK)                              [e-mail] 
 Consulting                                                                 [phone] 
 Edward Westropp 
  Tom Hufton 
 
 
 
   Financial Statements 
 
   The following primary statements have been extracted from the Q3 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 
 
 
 
 
                                                 September 30,  December 31, 
                                                      2016          2015 
ASSETS 
Current assets 
Cash and cash equivalents                                3,728         2,746 
Trade and other receivables                              6,144         3,253 
Prepayments, deposits and advances to partners             261           841 
Current portion of long-term receivables                12,020        18,190 
                                                        22,153        25,030 
Non-current assets 
Long-term receivables                                   19,731        18,897 
Exploration and evaluation assets                       44,803        43,141 
Property, plant and equipment                           94,159        95,168 
Deferred tax asset                                      31,266        34,341 
                                                       189,959       191,547 
Total assets                                           212,112       216,577 
 
LIABILITIES 
Current liabilities 
Trade and other payables                                10,894         6,269 
Current portion of long-term loans                       8,593         5,270 
Current portion of other liability                       1,072         1,508 
                                                        20,559        13,047 
Non-current liabilities 
Long-term loans                                         12,906        20,512 
Other liability                                          1,321         1,634 
Decommissioning provision                                1,114           973 
                                                        15,341        23,119 
Equity 
Share capital                                          411,493       411,493 
Equity reserve                                          26,154        25,683 
Accumulated deficit                                  (261,435)     (256,765) 
                                                       176,212       180,411 
Total liabilities and equity                           212,112       216,577 
 
 
   WENTWORTH RESOURCES LIMITED 
 
   Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss 
 
   United States $000s, unless otherwise stated 
 
 
 
 
                 Three months ended September      Nine months ended September 
                              30,                                          30, 
                     2016            2015            2016            2015 
 
Total revenue            2,384             972           9,020           1,536 
 
Operating 
expenses 
Production and 
 operating               (778)           (752)         (2,448)         (2,645) 
General and 
 administrative        (1,065)         (1,479)         (4,133)         (4,332) 
Depreciation 
 and depletion           (832)           (434)         (3,135)           (662) 
Share based 
 compensation            (107)           (136)           (471)           (594) 
Loss from 
 operating 
 activities              (398)          (1829)         (1,167)         (6,697) 
 
Finance income           1,463           1,205           3,802           3,899 
Finance costs          (1,960)           (625)         (4,230)         (2,979) 
 

Loss before tax          (895)         (1,249)         (1,595)         (5,777) 
 
Deferred tax 
 expense               (2,696)               -         (3,075)               - 
 
Net loss and 
 comprehensive 
 loss                  (3,591)         (1,249)         (4,670)         (5,777) 
 
Net loss per 
ordinary share 
Basic and 
 diluted 
 (US$/share)            (0.02)          (0.01)          (0.03)          (0.04) 
 
   WENTWORTH RESOURCES LIMITED 
 
   Unaudited Condensed Consolidated Interim Statement of Changes in Equity 
 
   United States $000s, unless otherwise stated 
 
 
 
 
                 Number of      Share       Equity    Accumulated     Total 
                  shares       capital     reserve      deficit      equity 
                                  $           $            $            $ 
 
Balance at 
 December 31, 
 2014           154,122,700      404,225      24,916    (283,799)      145,342 
Net loss and 
 comprehensive 
 loss                     -            -           -      (5,777)      (5,777) 
Share based 
 compensation             -            -         594            -          594 
Issue of share 
 capital         15,412,269        7,639           -            -        7,639 
Share issue 
 costs                    -        (371)           -            -        (371) 
Balance at 
 September 30, 
 2015           169,534,969      411,493      25,510    (289,576)      147,427 
 
 
 
Balance at 
 December 31, 
 2015           169,534,969      411,493      25,683    (256,765)      180,411 
Net loss and 
 comprehensive 
 loss                     -            -           -      (4,670)      (4,670) 
Share based 
 compensation             -            -         471            -          471 
Balance at 
 September 30, 
 2016           169,534,969      411,493      26,154    (261,435)      176,212 
 
 
   WENTWORTH RESOURCES LIMITED 
 
   Unaudited Condensed Consolidated Interim Statement of Cash Flows 
 
   United States $000s, unless otherwise stated 
 
 
 
 
                  Three months ended September   Nine months ended September 
                                           30,                           30, 
                           2016      2015           2016           2015 
Operating 
activities 
Net loss for the 
 period                 (3,591)        (1,249)        (4,670)        (5,777) 
Adjustments for: 
Depreciation and 
 depletion                  832            434          3,135            662 
Finance 
 costs/(income), 
 net                        497          (580)            428          (920) 
Deferred tax 
 expense                  2,696              -          3,075              - 
Share based 
 compensation               107            136            471            594 
Change in 
 non-cash 
 working 
 capital                  (108)        (1,855)        (1,135)            523 
Net cash 
 generated 
 from/(utilized 
 in) operating 
 activities                 433        (3,114)          1,304        (4,918) 
 
Investing 
activities 
Acquisitions of 
 evaluation and 
 exploration 
 assets                   (541)        (3,834)        (1,635)       (10,986) 
Acquisitions of 
 property, plant 
 and equipment                -        (4,834)            (9)       (12,234) 
Reductions 
 of/(additions 
 to) long-term 
 receivable               1,905          (168)          8,294        (1,672) 
Net cash 
 from/(used in) 
 investing 
 activities               1,364        (8,836)          6,650       (24,892) 
 
Financing 
activities 
Issue of share 
 capital, net of 
 issue costs                  -          7,268              -          7,268 
Repayment of 
 long-term loan         (3,333)              -        (4,333)              - 
Proceeds from 
 long-term loan               -          5,161              -         20,000 
Interest paid             (835)          (421)        (1,859)          (663) 
Payment of other 
 liability                (186)              -          (780)              - 
Net cash (used 
 in)/from 
 financing 
 activities             (4,354)         12,008        (6,972)         26,605 
 
 
Net change in 
 cash and cash 
 equivalents            (2,557)             58            982        (3,205) 
Cash and cash 
 equivalents, 
 beginning of 
 the period               6,285          2,224          2,746          5,487 
Cash and cash 
 equivalents, 
 end of the 
 period                   3,728          2,282          3,728          2,282 
 
 
   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, 2015, 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 contains inside information as defined in EU 
Regulation No. 596/2014 and is in accordance with the Company's 
obligations under Article 17 of that Regulation. 
 
 
 
   2016 11 15 Press Release: http://hugin.info/136496/R/2056902/770521.pdf 
   Q3 2016 Financial Statements: 
http://hugin.info/136496/R/2056902/770519.pdf 
   Q3 2016 MDA: http://hugin.info/136496/R/2056902/770520.pdf 
 
   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 
 
 
  http://www.wentworthresources.com/ 
 

(END) Dow Jones Newswires

November 15, 2016 02:01 ET (07:01 GMT)

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