Wentworth Resources Ltd Wentworth Resources Limited : Q1 2017 Financial Statements And Md&A

 
TIDMWRL 
 
 
 
 
 
 
   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 (OSE: WRL) and 
London Stock Exchange (AIM: WRL) 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. 
 
   As a near term catalyst, we look to determine the upside potential of 
the Tembo gas discovery and secure a farm-in partner to participate in 
the appraisal program." 
 
   A conference call for investors, analysts and other interested parties 
will be held that day at 06:00 MST (Calgary) / 13.00 BST (London) / 
14.00 CEST (Oslo). Call in numbers: 
 
   Call in numbers: 
 
   Canada: [phone] 
 
   Norway: + 800 16886 
 
   United States: [phone] 
 
   International/ United Kingdom Dial In: [phone] 
 
   Participants will be able to enter the call by referencing "Wentworth Q1 
results" and will be asked for their name and company. 
 
 
 
 
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 
 
 
 
   Financial Statements 
 
   The following primary statements have been extracted from the Q1 2017 
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,  December 31, 
                                               2017        2016 
 
ASSETS 
Current assets 
Cash and cash equivalents                         455           979 
Trade and other receivables                     9,378         6,699 
Prepayments and deposits                          148           187 
Current portion of long-term receivables       10,501        12,283 
                                               20,482        20,148 
Non-current assets 
Long-term receivables                          16,758        18,034 
Exploration and evaluation assets              45,995        45,538 
Property, plant and equipment                  92,696        93,366 
Deferred tax asset                             31,865        31,145 
                                              187,314       188,083 
Total assets                                  207,796       208,231 
 
LIABILITIES 
Current liabilities 
Trade and other payables                        8,703         8,675 
Current portion of long-term loans              5,258         5,258 
Current portion of other liability              1,019         1,260 
                                               14,980        15,193 
Non-current liabilities 
Long-term loans                                15,188        15,254 
Other liability                                 1,222         1,100 
Decommissioning provision                         796           773 
                                               17,206        17,127 
Equity 
Share capital                                 411,493       411,493 
Equity reserve                                 26,383        26,275 
Accumulated deficit                         (262,266)     (261,857) 
                                              175,610       175,911 
Total liabilities and equity                  207,796       208,231 
 
 
   WENTWORTH RESOURCES LIMITED 
 
   Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss 
 
   United States $000s, unless otherwise stated 
 
 
 
 
                                          Three months ended March 31, 
                                              2017            2016 
 
 
Total revenue                                      2,944         3,206 
 
Operating expenses 
Production and operating                           (910)         (897) 
General and administrative                         (930)       (1,512) 
Depreciation and depletion                         (894)       (1,114) 
Share based compensation                           (108)         (228) 
Profit/(loss) from operations                        102         (545) 
 
Finance income                                       635         1,285 
Finance costs                                    (1,866)       (1,226) 
 
  Loss before tax                                (1,129)         (486) 
 
Deferred tax recovery/(expense)                      720         (419) 
 
Net loss and comprehensive loss                    (409)         (905) 
 
Net loss per ordinary share 
Basic and diluted (US$/share)                          -        (0.01) 
 
 
   WENTWORTH RESOURCES LIMITED 
 
   Unaudited Condensed Consolidated Interim Statement of Changes in Equity 
 
   United States $000s, unless otherwise stated 
 
 
 
 
 
                                                                         Accumulated    Total 
                  Number of shares    Share capital    Equity reserve      deficit      equity 
                                           $                $                $           $ 
 
 
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 
 
 
 
Balance at 
 December 31, 
 2016                  169,534,969          411,493            26,275      (261,857)   175,911 
Net loss and 
 comprehensive 
 loss                            -                -                 -          (409)     (409) 
Share based 
 compensation                    -                -               108              -       108 
Balance at 
 March 31, 
 2017                  169,534,969          411,493            26,383      (262,266)   175,610 
 
 
   WENTWORTH RESOURCES LIMITED 
 
   Unaudited Condensed Consolidated Interim Statement of Cash Flows 
 
   United States $000s, unless otherwise stated 
 
 
 
 
                                               Three months ended March 31, 

                                                   2017            2016 
 
Operating activities 
Net loss for the period                                 (409)         (905) 
Adjustments for: 
Depreciation and depletion                                894         1,114 
Finance costs/(income), net                             1,231          (59) 
 Deferred tax (recovery)/expense                        (720)           419 
Share based compensation                                  108           228 
Change in non-cash working capital                    (2,290)         (939) 
Net cash utilized in operating 
activities                                            (1,186)         (142) 
 
Investing activities 
Additions to evaluation and exploration 
 assets                                                 (444)             - 
Additions to property, plant and equipment              (217)             - 
Reductions of long-term receivable                      2,255         2,596 
Net cash from investing activities                      1,594         2,596 
 
Financing activities 
Principal payments                                       (14)             - 
Debt restructuring fee                                   (83)             - 
Interest paid                                           (784)         (773) 
Payment of other liability                               (51)         (373) 
Net cash used in financing activities                   (932)       (1,146) 
 
 
Net change in cash and cash equivalents                 (524)         1,308 
Cash and cash equivalents, beginning of the 
 period                                                   979         2,746 
Cash and cash equivalents, end of the 
 period                                                   455         4,054 
 
 
 
 
   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, 2016, 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. 
 
   170530 Announcement: http://hugin.info/136496/R/2108314/800767.pdf 
   Q1 2017 Financial Statements: 
http://hugin.info/136496/R/2108314/800768.pdf 
   Q1 2017 MDA: http://hugin.info/136496/R/2108314/800769.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

May 30, 2017 02:00 ET (06:00 GMT)

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