Wentworth Resources Ltd Wentworth Resources Limited : 2016 Full Year Results

 
TIDMWRL 
 
 
 
 
 
 
   PRESS RELEASE 
 
   23 March 2017 
 
   Wentworth Resources Limited 
 
   ("Wentworth" or the "Company") 
 
   2016 Full Year Results 
 
   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 audited financial results for the 
year ended 31 December 2016. 
 
   The following should be read in conjunction with the 2016 Management 
Discussion and Analysis ("MD&A") and Consolidated Financial Statements 
which are available on the Company's updated website at 
http://www.wentworthresources.com. 
 
   Further to the announcement of 28 February 2017 regarding the unaudited 
Q4 2016 Financial Statements and MD&A, an independent reserves 
assessment of the Company's Tanzanian gas assets was completed and 
announced on 9 March 2017 and an Annual Statement of Reserves 2016 has 
been included in the 2016 MD&A. 
 
   2016 HIGHLIGHTS 
 
   Reserves 
 
 
   -- Independent reserves evaluation attributed Wentworth's share of Proved + 
      Probable (2P) reserves valued at US$180.3 million NPV (10%) after tax at 
      December 31, 2016 to the Company's gas fields in Tanzania. 
 
   -- Net 2P reserves were 115.9 Bscf (19.3 MMbbl BOE) which were higher than 
      2015 after taking into consideration gas production during the year. 
 
 
   Financial 
 
 
   -- Gas sales revenue of $11.75 million up 153 percent from 2015 due to the 
      commencement of gas sales to the new Mtwara to Dar es Salaam gas pipeline 
      during Q3 2015. 
 
   -- Net loss of $5.09 million ($0.03 per share) compared to a 2015 net profit 
      of $27.03 million ($0.17 per share); 2015 profit includes a non-cash 
      deferred tax recovery of $34.34 million. 
 
   -- Development and exploration capital expenditures of $2.06 million and 
      $2.40 million, respectively during 2016. 
 
   -- Cash and cash equivalents on hand of $0.98 million compared with $2.75 
      million on hand at December 31, 2015. 
 
   -- Working capital was $4.96 million compared to $11.98 million at December 
      31, 2015. 
 
   -- Reduced outstanding debt to $20.67 million (December 31, 2015 - $26.0 
      million) following $5.33 million of principal payments during the year. 
 
   -- Subsequent to year end, amended the timing of principal payments on the 
      existing $20.0 million credit facility and secured a new $2.5 million 
      credit facility for working capital purposes. 
 
 
   Operational 
 
   Tanzania 
 
 
   -- The Mnazi Bay field achieved average gross daily gas production of 43.0 
      MMscf/d compared to 15.7 MMscf/d during 2015. 
 
   -- Expansion of the liquid separation units and gas processing facilities at 
      Mnazi Bay was ongoing during the year end with commissioning and full 
      operations expected in Q2 2017. 
 
 
   Mozambique 
 
 
   -- Received Mozambique Government approval of a two-year appraisal program 
      for the Tembo gas discovery and increasing Wentworth's participation 
      interest in the Tembo appraisal area of the Rovuma Onshore Block from 
      11.59 per cent to 85 per cent.  Wentworth has been appointed Operator. 
 
   -- Completed reprocessing of approximately 1,000 km of 1984/1985 vibroseis 
      data which represents all 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. 
 
 
   Geoff Bury, Managing Director, commented: 
 
   "We are very pleased with the updated reserve report covering our gas 
reserves in Tanzania which more than underpins the quality of our 
producing asset. We expect production to average between 40 and 50 
MMscf/d throughout 2017 before seeing a material increase in volumes 
starting in 2018 with the addition of newly constructed and commissioned 
power plants in Dar es Salaam. With a fully invested field and all 
infrastructure in place to more than double current production, we are 
well positioned to benefit from increasing demand from current, stable 
levels. " 
 
 
 
 
Enquiries: 
 
              Lance Mierendorf,                                            [e-mail] 
Wentworth      Chief Financial Officer                                                 [phone] 
              Katherine Roe                                                 [e-mail] 
               Vice President Corporate Development & Investor Relations               [phone] 
Crux          Investor Relations Adviser 
 Advisers      (Norway)                                                                             [phone] 
              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 
 
 
 
   Consolidated Financial Statements 
 
   The following primary statements have been extracted from the 2016 
consolidated financial statements which are located on the Company's 
website at www.wentworthresources.com. 
 
   WENTWORTH RESOURCES LIMITED 
 
   Consolidated Statements of Financial Position 
 
   United States $000s, unless otherwise stated 
 
 
 
 
                                                 December 31,  December 31, 
                                                     2016          2015 
ASSETS 
Current assets 
Cash and cash equivalents                                 979         2,746 
Trade and other receivables                             6,699         3,253 
Prepayments, deposits and advances to partners            187           841 
Current portion of long-term receivables               12,283        18,190 
                                                       20,148        25,030 
Non-current assets 
Long-term receivables                                  18,034        18,897 
Exploration and evaluation assets                      45,538        43,141 
Property, plant and equipment                          93,366        95,168 
Deferred tax asset                                     31,145        34,341 
                                                      188,083       191,547 
Total assets                                          208,231       216,577 
 
LIABILITIES 
Current liabilities 
Trade and other payables                                8,675         6,269 
Current portion of long-term loans                      5,258         5,270 
Current portion of other liability                      1,260         1,508 
                                                       15,193        13,047 
Non-current liabilities 
Long-term loans                                        15,254        20,512 
Other liability                                         1,100         1,634 
Decommissioning provision                                 773           973 
                                                       17,127        23,119 
Equity 
Share capital                                         411,493       411,493 
Equity reserve                                         26,275        25,683 
Accumulated deficit                                 (261,857)     (256,765) 
                                                      175,911       180,411 
Total liabilities and equity                          208,231       216,577 
 
 
   WENTWORTH RESOURCES LIMITED 
 
   Consolidated Statements of Comprehensive Loss 
 
   United States $000s, unless otherwise stated 
 
 
 
 
                                                      Year ended December 31, 
                                                        2016         2015 
 
Total revenue                                             11,750        4,637 
 
Operating expenses 
Production and operating                                 (3,371)      (3,214) 
General and administrative                               (5,397)      (6,367) 
Depreciation and depletion                               (3,864)      (1,707) 
Share based compensation                                   (592)        (767) 
Loss from operating                                      (1,474)      (7,418) 
 
Finance income                                             4,693        4,818 
Finance costs                                            (5,115)      (4,707) 
 
Loss before tax                                          (1,896)      (7,307) 
 
Deferred tax (expense)/recovery                          (3,196)       34,341 
 
Net (loss)/profit and comprehensive (loss)/profit        (5,092)       27,034 
 
Net (loss)/profit per ordinary share 
Basic and diluted (US$/share)                             (0.03)         0.17 
 
   WENTWORTH RESOURCES LIMITED 
 
   Consolidated Statements 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                     -            -           -       27,034       27,034 
Share based 
 compensation             -            -         767            -          767 
Issue of share 
 capital         15,412,269        7,639           -            -        7,639 
Share issue 

 costs                    -        (371)           -            -        (371) 
Balance at 
 December 31, 
 2015           169,534,969      411,493      25,683    (256,765)      180,411 
 
 
Balance at 
 December 31, 
 2015           169,534,969      411,493      25,683    (256,765)      180,411 
Net loss and 
 comprehensive 
 loss                     -            -           -      (5,092)      (5,092) 
Share based 
 compensation             -            -         592            -          592 
Balance at 
 December 31, 
 2016           169,534,969      411,493      26,275    (261,857)      175,911 
 
 
   WENTWORTH RESOURCES LIMITED 
 
   Consolidated Statements of Cash Flows 
 
   United States $000s, unless otherwise stated 
 
 
 
 
                                                       Year ended December 31, 
                                                        2016          2015 
Operating activities 
Net (loss)/profit for the period                         (5,092)        27,034 
Adjustments for: 
Depreciation and depletion                                 3,864         1,707 
Finance costs/(income), net                                  422         (111) 
Deferred tax expense/(recovery)                            3,196      (34,341) 
Share based compensation                                     592           767 
Change in non-cash working capital                       (2,506)           175 
Net cash generated from/(utilized in) operating 
 activities                                                  476       (4,769) 
 
Investing activities 
Acquisitions of evaluation and exploration assets        (2,371)      (10,299) 
Acquisitions of property, plant and equipment            (2,347)      (12,926) 
Reductions of/(additions to) long-term receivable         10,763       (1,116) 
Interest income                                                -             7 
Net cash from/(used in) investing activities               6,045      (24,334) 
 
Financing activities 
Proceeds from long-term loan                                   -        20,000 
Repayment of long-term loan                              (5,333)             - 
Interest paid                                            (2,073)         (906) 
Issue of share capital, net of issue costs                     -         7,268 
Payment of other liability                                 (882)             - 
Net cash (used in)/from financing activities             (8,288)        26,362 
 
 
Net change in cash and cash equivalents                  (1,767)       (2,741) 
Cash and cash equivalents, beginning of the period         2,746         5,487 
Cash and cash equivalents, end of the period                 979         2,746 
 
 
   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. 
 
 
 
   2017 03 23 Press Release: http://hugin.info/136496/R/2089932/789099.pdf 
   Annual 2016 Financial Statements: 
http://hugin.info/136496/R/2089932/789101.pdf 
   2016 Report on Corporate Governance: 
http://hugin.info/136496/R/2089932/789104.pdf 
   Annual 2016 MDA: http://hugin.info/136496/R/2089932/789102.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

March 23, 2017 03:00 ET (07:00 GMT)

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