Wentworth Resources Limited : Q1 2012 Financial Statements and MD&A
(Thomson Reuters ONE) -
24 May 2012
Wentworth Resources Limited
("Wentworth" or "the Company")
Q1 2012 Financial Statements and MD&A
Wentworth Resources Limited ("Wentworth"), the Oslo Stock Exchange (OSE: WRL)
and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company,
today releases its unaudited Q1 2012 Condensed Consolidated Interim Financial
Statements and Management's Discussion and Analysis.
HIGHLIGHTS:
Mnazi Bay, Tanzania:
* The Company announced the acquisition of Cove Energy PLC's ("Cove Energy")
interest in the Mnazi Bay Concession in exchange for:
* the Company terminating its 4.95% net profits interest from Cove
Energy's 8.5% working interest in the Offshore Rovuma Area 1
Concession,
* two million newly issued common shares of Wentworth and
* a contingent payment of up to $8.5 million should certain future natural
gas production thresholds from Mnazi Bay be reached ("Swap
Transaction").
* The value of the Swap Transaction is approximately $38.8 million and the
transaction is expected to close in the second quarter of 2012 and the
Company will update shareholders accordingly in due course.
* Tanzanian Petroleum Development Corporation ("TPDC") waived their pre-
emptive right in respect of the Swap Transaction. However Maurel & Prom
("M&P") exercised their pre-emptive right thereby reducing Wentworth's
acquisition of Cove Energy's participation interest from 16.38% interest in
production operations (20.475% interest in exploration operations) to 6.54%
interest in production operations (8.175% interest in exploration
operations).
* The Company reached an agreement with M&P for the exercise of M&P's pre-
emptive right in respect of the Company's acquisition of Cove Energy's
participation interest in the Mnazi Bay Concession ("M&P Transaction"). The
M&P Transaction is subject to government approval after which both the Swap
Transaction and M&P Transaction will close. At closing of the Swap
Transaction and M&P Transaction, which is anticipated to occur in Q2 2012,
the Company anticipates receiving $15.1 million net of closing adjustments
and M&P will assume 60.075% of any contingent payment due to Cove Energy.
* The Company sold its 100% owned 18MW gas-fired power plant and associated
assets (located in Mtwara, Tanzania) to Tanzania Electric Supply Company
("TANESCO") for cash consideration of $13.5 million plus the cost of
inventory.
* The onshore Ziwani-1 exploration well was drilled to a total depth of 2,671
meters. Full logging operations were completed and a gas bearing zone
between 1,106 and 1,109 meters was tested. Analysis of the test data
indicated that the potential resource volumes of the well are sub-commercial
and the well has therefore been plugged and abandoned.
Onshore Rovuma, Mozambique:
* Field preparation in advance of a 2D seismic acquisition program commenced
Corporate:
* The Company acquired the remaining non-controlling interest in the
subsidiary holding the Company's Tanzanian operations for $1.6 million.
* Lance Mierendorf appointed new chief financial officer.
Financial Information:
* Cash position of approximately $15.1 million as at March 31, 2012.
OUTLOOK
* A rig has been contracted by M&P for the workover of three wells on the
Mnazi Bay and Msimbati gas fields. The work overs will assess the long term
gas deliverability of the wells. The rig is being mobilized to site and the
workovers are expected to commence shortly.
* Seismic acquisition will commence Q2 2012 in the Onshore Rovuma Basin,
Mozambique.
Geoff Bury, Managing Director, commented:
"We are pleased to report our financial results for the three months ended March
31, 2012 during which saw the Company strengthen its balance sheet and, with the
disposal of the power operations segment, become entirely focused on oil and gas
exploration and development in Tanzania and Mozambique. Following the
monetization of the offshore net profits royalty and the funds to be received
upon closing the Cove and M&P Transaction, the Company is in a strong financial
position and is fully funded for 2012 and into 2013. We look forward to working
with our partners and the government on the approval of the changes in the
participation interest in the Mnazi Bay Concession and continuing with the
ongoing well work over program which will demonstrate gas production quantities
that can be delivered to a proposed Mtwara to Dar es Salaam gas pipeline."
Enquiries:
Wentworth Lance Mierendorf, CFO lance.mierendorf(at)wentworthresources.com
Eric Fore, Finance, etf(at)wentworthresources.com
Investor &
Public Relations
Manager
Panmure Gordon Nominated adviser & +44 (0) 20 7459 3600
broker
Katherine Roe
Charlie Leigh-
Pemberton
FirstEnergy Broker +44 (0) 20 7448 0200
Capital
Majid Shafiq
Travis Inlow
College Hill Investment relations +44 (0) 20 7457 2020
adviser
Nick Elwes
Catherine Maitland
Alexandra Roper
Axxept Investment relations +47 (0) 99 22 0200
adviser
Per Arne Totland
About Wentworth Resources
Wentworth Resources is a publicly traded (OSE:WRL, AIM:WRL), independent oil &
gas company with: natural gas production; midstream and downstream assets; a
committed exploration and appraisal drilling programme; and large-scale gas
monetisation programmes, all in the Rovuma Delta Basin of coastal southern
Tanzania and northern Mozambique.
Jon Rodd, (BSc and PhD in Geology), the Company's Competent Person, is a
Director of Prime Energy Consult Ltd, which is providing technical advice to the
Company. Dr Rodd has 29 years of experience in the exploration and production
industry. He has reviewed and approved the technical information contained in
this announcement pursuant to the AIM guidance note for mining and oil and gas
companies.
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, 2011,
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.
2012 05 24 Press Release:
http://hugin.info/136496/R/1614497/514451.pdf
Q1 2012 MDA:
http://hugin.info/136496/R/1614497/514450.pdf
Q1 2012 Financial Statements:
http://hugin.info/136496/R/1614497/514449.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Wentworth Resources Limited via Thomson Reuters ONE
[HUG#1614497]
Unternehmensinformation / Kurzprofil:
Datum: 24.05.2012 - 08:00 Uhr
Sprache: Deutsch
News-ID 149707
Anzahl Zeichen: 11607
contact information:
Town:
Calgary, Alberta
Kategorie:
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