2014-05-21:T08:00
Wentworth Resources Limited : Q1 2014 Financial Statements and MD&A
PRESS RELEASE
21 May 2014
Wentworth Resources Limited
("Wentworth" or the "Company")
Q1 2014 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 first quarter and three months ended 31 March 2014.
The following should be read in conjunction with the Q1 2014 Management Discussion and Analysis and Financial Statements which are available on the Company's updated website at http://www.wentworthresources.com.
Q1 2014 Highlights
· Completed the acquisition of new high resolution 2D seismic data over the two discovered gas fields within the Mnazi Bay Concession, Tanzania.
· Continued with pre-drilling activities in advance of a June spud date for the Tembo prospect within the Rovuma Onshore Concession, Mozambique.
· Continued consultations with the Government of Tanzania to conclude a Gas Sales Agreement ("GSA") to supply Mnazi Bay Concession natural gas to the Mtwara to Dar es Salaam pipeline that is under construction and expected to be completed and commissioned during Q1 2015. No significant issues remain unresolved and the Company expects GSA to be signed in Q2 2014.
· First quarter exploration capital expenditures of $4.8 million compared to $2.6 million during the same period in 2013.
· Revenues for the quarter of $0.2 million which is consistent with Q1 2013.
· Loss from operating activities for the quarter of $2.2 million compared to a similar loss during Q1 2013.
· Cash and cash equivalents and short-term investments totalled $30.5 million at March 31, 2014 compared to $37.7 million on hand at December 31, 2013.
· Working capital at March 31, 2014 was $31.2 million compared to $38.4 million at December 31, 2013.
Outlook
· In June 2014 drilling operations for the first exploration well, Tembo-1, of a two well program in Mozambique are expected to start. The second well, Kifaru-1, will be drilled immediately following completion of Tembo-1.
· The construction of the Mtwara to Dar es Salaam pipeline is progressing well and the Company expects to begin selling natural gas into the pipeline in Q1 2015. The Company and the Mnazi Bay Concession partners continue to work towards the signing of the GSA with the Tanzanian government.
· Acquisition of 2D onshore seismic data over the prospective areas of the Mnazi Bay Concession Tanzania is expected to be completed during Q2. Processing and interpretation of this new seismic data during 2014 is expected to support future appraisal/development and exploration drilling which is anticipated to commence in Q4 2014 or Q1 2015.
Geoff Bury, Managing Director, commented:
"The drilling of two high impact exploration wells in Mozambique will commence in the very near future. These wells have the potential to significantly impact the Company's valuation. In Tanzania, pipeline construction is on schedule with no indication of delay of the Q1 2015 expected commissioning and first gas delivery timing. Although it has taken much longer than initially anticipated, all signs point toward an imminent conclusion of a gas sales agreement covering initial gas supplies from the Mnazi Bay Concession. The Company will update shareholders when an agreement has been signed. We are excited about the near term catalysts and wish to thank shareholders for their ongoing support."
Enquiries: | ||
Wentworth | Lance Mierendorf, Chief Financial Officer | lance mierendorf@wentworthresources.com +1 403 680 8773 |
Swedbank First Securities | Broker(Norway) | +47 23 23 80 00 |
Ove Gusevik | ||
Jarand Lønne | ||
Crux Kommunikasjon | Investor Relations Adviser (Norway) | +47 995 138 91 |
Jan Petter Stiff | ||
Fredrik Eeg | ||
Panmure Gordon | AIM Nominated Adviser and Broker (UK) | +44 (0) 20 7886 2500 |
Callum Stewart | ||
Adam James | ||
Tom Salvesen | ||
FirstEnergy Capital | Broker (UK) | +44 (0) 20 7448 0200 |
Majid Shafiq | ||
Travis Inlow | ||
Investec | Broker (UK) | +44 (0) 20 7597 4000 |
Chris Sim | ||
Instinctif Partners | Investor Relations Adviser (UK) | +44 (0) 20 7457 2020 |
David Simonson Catherine Wickman | ||
Harry Cameron | ||
Financial Statements
The following primary statements have been extracted from the Q1 2014 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, 2014 | December 31, 2013 | |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 17,676 | 14,501 |
Short-term investments - term deposits | 12,851 | 23,176 |
Trade and other receivables | 2,292 | 1,845 |
Prepayments, deposits and advances to partners | 1,926 | 1,674 |
Current portion of long-term receivables | 657 | 658 |
35,402 | 41,854 | |
Non-current assets | ||
Long-term receivables | 30,157 | 28,661 |
Exploration and evaluation assets | 55,417 | 50,636 |
Property, plant and equipment | 18,844 | 18,498 |
104,418 | 97,795 | |
Total assets | 139,820 | 139,649 |
LIABILITIES | ||
Current liabilities | ||
Trade and other payables | 4,161 | 3,487 |
4,161 | 3,487 | |
Non-current liabilities | ||
Long-term loans | 3,924 | 3,816 |
Other long-term liabilities | 2,892 | 2,836 |
Decommissioning provision | 709 | 685 |
7,525 | 7,337 | |
Equity | ||
Share capital | 403,998 | 403,998 |
Equity reserve | 24,057 | 23,903 |
Accumulated deficit | (299,921) | (299,076) |
128,134 | 128,825 | |
Total liabilities and equity | 139,820 | 139,649 |
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss
United States $000s, unless otherwise stated
Three months ended March 31, | ||
2014 | 2013 | |
Total revenue | 236 | 216 |
Operating expenses | ||
Production and operating | (372) | (153) |
General and administrative | (1,809) | (1,974) |
Share based compensation | (154) | (122) |
Depreciation and depletion | (135) | (134) |
Gain from sale of office assets | 23 | - |
Loss from operating activities | (2,211) | (2,167) |
Finance income | 1,643 | 1,232 |
Finance costs | (277) | (212) |
Net loss and comprehensive loss | (845) | (1,147) |
Net loss per ordinary share | ||
Basic and diluted (US$/share) | (0.01) | (0.01) |
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, 2012 | 82,503,940 | 361,675 | 21,996 | (289,087) | 94,584 |
Net loss and comprehensive loss | - | - | - | (1,147) | (1,147) |
Share based compensation | - | - | 122 | - | 122 |
Balance at March 31, 2013 | 82,503,940 | 361,675 | 22,118 | (290,234) | 93,559 |
Balance at December 31, 2013 | 153,872,700 | 403,998 | 23,903 | (299,076) | 128,825 |
Net loss and comprehensive loss | - | - | - | (845) | (845) |
Share based compensation | - | - | 154 | - | 154 |
Balance at March 31, 2014 | 153,872,700 | 403,998 | 24,057 | (299,921) | 128,134 |
WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Cash Flows
United States $000s, unless otherwise stated
Three months ended March 31, | ||||
2014 | 2013 | |||
Operating activities | ||||
Net loss for the period | (845) | (1,147) | ||
Adjustments for: | ||||
Share based compensation | 154 | 122 | ||
Depreciation and depletion | 135 | 134 | ||
Finance income, net | (1,366) | (1,020) | ||
Gain from sale of assets | (23) | - | ||
Change in non-cash working capital | (18) | (1,342) | ||
Cash used in operating activities | (1,963) | (3,253) | ||
Investing activities | ||||
Additions to evaluation and exploration assets | (4,781) | (2,635) | ||
Additions to property, plant and equipment | (481) | (21) | ||
Conversion of term deposits to cash | 10,325 | - | ||
Interest income | 40 | 18 | ||
Net reduction/(increase) of long-term receivable | 101 | (201) | ||
Change in non-cash working capital | - | 652 | ||
Cash provided by/(used in) investing activities | 5,204 | (2,187) | ||
Financing activities | ||||
Repayment of long-term loan | - | (300) | ||
Interest paid | (89) | (137) | ||
Proceeds from sale of office assets | 23 | - | ||
Decrease of other long-term liabilities | - | (157) | ||
Cash used in financing activities | (66) | (594) | ||
Net change in cash and cash equivalents | 3,175 | (6,034) | ||
Cash and cash equivalents, beginning of the period | 14,501 | 9,352 | ||
Cash and cash equivalents, end of the period | 17,676 | 3,318 |
About Wentworth Resources
Wentworth Resources is a publicly traded (OSE:WRL, AIM:WRL), independent oil & gas company with: natural gas production; midstream assets; a committed exploration and appraisal drilling programme; and large-scale gas monetisation opportunities, all in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique.
Gerold Fong, Vice President of Exploration (BSC Geophysics, 1982) who has 31 years of experience in the exploration and production industry, has read and approved the technical disclosure in this regulatory announcement.
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, 2013, 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.