Wentworth Resources Limited : 2014 Full Year Results
(Thomson Reuters ONE) -
PRESS RELEASE
16 March 2015
Wentworth Resources Limited
("Wentworth" or the "Company")
2014 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
2014.
The following should be read in conjunction with the 2014 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 26 February 2015 regarding the unaudited Q4 2014
Financial Statements and MD&A, an independent reserves assessment of the
Company's Tanzanian gas assets was completed and announced on 9 March 2015 and
an Annual Statement of Reserves 2014 has been included in the 2014 MD&A.
2014 HIGHLIGHTS
Corporate
* Landmark year in the development of the Company following execution of gas
sales and purchase agreement ("GSA") with the Government of Tanzania.
* GSA to supply discovered natural gas from the Mnazi Bay Concession at a
price of US$3.00 per mmbtu (approximately US$3.07 per mscf) escalating at US
CPI annually over a seventeen year term.
* Independent reserves attributed to the Company's Mnazi Bay gas fields for
the first time.
* Poised for first production into pipeline and substantial free cash flow in
2015.
* The new (Government owned) Mtwara to Dar es Salaam pipeline and gas
processing facilities are nearly complete with delivery of first gas for
commissioning anticipated to occur in April 2015. Sales of Mnazi Bay gas to
the new pipeline are expected to ramp up to 80 mmscf/day (gross) commencing
Q3 2015.
Financial
* Net income in 2014 of $15.28 million ($0.10 per share) compared to a 2013
net loss of $9.99 million (($0.11) per share).
* Recognized a non-recurring, non-cash reversal of $23.80 million of
previously impaired oil and gas assets in the Mnazi Bay Concession due to
the signing of the GSA and near completion of pipeline and infrastructure.
* Revenue of $1.06 million, up 11% from 2013, due to increasing gas sales
volumes at a fixed price of $5.36 per mmbtu to an 18 megawatt power plant in
Mtwara, Tanzania.
* Exploration and development capital expenditures of $22.87 million and $3.53
million respectively compared to $6.05 million and $0.98 million
respectively in 2013.
* Secured credit facilities totaling $26 million, of which $6 million was
drawn down in December 2014 and used to repay a $6 million credit facility
with Vitol Energy.
* Cash and cash equivalents on hand of $5.49 million at 31 December 2014
compared with $37.68 million, including short-term deposits, on hand at 31
December 2013.
* Working capital at 31 December 2014 of $15.84 million compared to $38.37
million at 31 December 2013.
Operational
Mnazi Bay Block, Tanzania
* Completed acquisition and processing of 315km of conventional 2D seismic
over prospective areas in south and southwestern portion of the block.
* Completed acquisition and processing of 58km of high resolution 2D seismic
over the Mnazi Bay and Msimbati gas fields.
* Commenced design and construction of field infrastructure to connect Mnazi
Bay to the new transnational government pipeline project.
* Continuing interpretation of seismic and drilling data to support the
ongoing development plan and exploration opportunities.
* Commenced planning for drilling operations of the fifth (MB-4) development
well which is expected to spud in March, complete by June and is expected to
initially produce 20mmscf/day (gross).
Rovuma Onshore Block, Mozambique
* The Tembo-1 exploration well reached a total depth of 4,553 meters and was
plugged and abandoned in December 2014. A discovery in the Cretaceous
indicated 11 meters of natural gas net pay and well results are currently
being evaluated to assess the potential commerciality of this discovery.
* The drilling rig was moved from the Tembo-1 location to the Kifaru-1
exploration well location in December and drilling operations at Kifaru-1
commenced in January 2015.
* The Kifaru-1 well was drilled to a total depth of 3,100 metres, failed to
find an economic reservoir and was plugged and abandoned on 23 February
2015.
* Licence partners are evaluating all data collected to determine the next
steps in the exploration phase of the Onshore Rovuma Block.
Geoff Bury, Managing Director, commented:
"We are very pleased that we now have reserves associated with our Mnazi Bay
concession. This is a further step towards bringing our gas on stream and
follows on from the signing of our gas sales agreement last year, and the
ongoing implementation of the field infrastructure. With the government pipeline
project on track for a Q2 2015 commissioning, Wentworth now has a defined market
for its Mnazi Bay gas and is within a few months of commencing first production
into the pipeline, which should generate significant free cash flow in 2015."
Enquiries:
Wentworth Lance Mierendorf, lance.mierendorf(at)wentworthresources.com
Chief Financial +1 403 680 8773
Officer
Katherine Roe katherine.roe(at)wentworthresources.com
Head of Investor +44 7841 087 230
Relations &
Corporate
Communications
Swedbank First Broker(Norway) +47 23 23 80 00
Securities
Ove Gusevik
Jarand Lønne
Crux Kommunikasjon Investor Relations +47 995 138 91
Adviser
(Norway)
Jan Petter Stiff
Carl Bachke
Panmure Gordon AIM Nominated +44 (0) 20 7886 2500
Adviser and Broker
(UK)
Dominic Morley
Adam James
FirstEnergy Broker (UK) +44 (0) 20 7448 0200
Capital
Travis Inlow
Investec Broker (UK) +44 (0) 20 7597 4000
Chris Sim
Instinctif Investor Relations +44 (0) 20 7457 2020
Partners Adviser (UK)
David Simonson
Anca Spiridon
Consolidated Financial Statements
The following primary statements have been extracted from the 2014 consolidated
financial statements which are located on the Company's website at
www.wentworthresources.com.
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Financial Position
United States $000s, unless otherwise stated
December 31, December 31,
2014 2013
------------------------------
ASSETS
Current assets
Cash and cash equivalents 5,487 14,501
Short-term investments - 23,176
Trade and other receivables 2,613 1,845
Prepayments, deposits and advances to partners 1,418 1,674
Current portion of long-term receivables 14,530 658
------------------------------
24,048 41,854
------------------------------
Non-current assets
Long-term receivables 19,472 28,661
Exploration and evaluation assets 33,762 50,636
Property, plant and equipment 85,035 18,498
------------------------------
138,269 97,795
------------------------------
Total assets 162,317 139,649
------------------------------
LIABILITIES
Current liabilities
Trade and other payables 8,204 3,487
------------------------------
8,204 3,487
------------------------------
Non-current liabilities
Long-term loans 5,718 3,816
Contingent long-term liabilities 2,271 2,836
Decommissioning provision 782 685
------------------------------
8,771 7,337
------------------------------
Equity
Share capital 404,225 403,998
Equity reserve 24,916 23,903
Accumulated deficit (283,799) (299,076)
------------------------------
145,342 128,825
------------------------------
Total liabilities and equity 162,317 139,649
------------------------------
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Comprehensive Income/(Loss)
United States $000s, unless otherwise stated
Year ended December
31,
2014 2013
----------------------
Total revenue 1,060 955
Operating expenses
Production and operating (2,592) (1,656)
General and administrative (6,826) (7,931)
Share based compensation (1,090) (362)
Depreciation and depletion (542) (451)
Gain from sale of office assets 60 -
Reversal of impairment on exploration and evaluation 13,384 -
assets
Reversal of impairment on property, plant and equipment 10,421 -
----------------------
Income/(loss) from operating activities 13,875 (9,445)
Gain on derivative financial liability - 610
Finance income 5,914 5,266
Finance costs (4,512) (6,420)
----------------------
Net income/(loss) and comprehensive loss 15,277 (9,989)
----------------------
Net income/(loss) per ordinary share
Basic and diluted (US$/share) 0.10 (0.11)
----------------------
WENTWORTH RESOURCES LIMITED
Consolidated 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 82,503,940 361,675 21,996 (289,087) 94,584
31, 2012
Net loss and - - - (9,989) (9,989)
comprehensive loss
Reclassification of - - 1,678 - 1,678
warrants
Share based - - 362 - 362
compensation
Issue of share 71,368,760 46,200 (133) - 46,067
capital
Share issue costs - (3,877) - - (3,877)
-----------------------------------------------------------
Balance at December 153,872,700 403,998 23,903 (299,076) 128,825
31, 2013
-----------------------------------------------------------
Balance at December 153,872,700 403,998 23,903 (299,076) 128,825
31, 2013
Net income and - - - 15,277 15,277
comprehensive
income
Share based - - 1,090 - 1,090
compensation
Issue of share 250,000 227 (77) - 150
capital
-----------------------------------------------------------
Balance at December 154,122,700 404,225 24,916 (283,799) 145,342
31, 2014
-----------------------------------------------------------
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Cash Flows
United States $000s, unless otherwise stated
Year ended December 31,
2014 2013
------------------
Operating activities
Net income/(loss) for the year 15,277 (9,989)
Adjustments for:
Share based compensation 1,090 362
Depreciation and depletion 542 451
Finance loss/(income), net (1,402) 679
Reversal of impairment on exploration and evaluation (13,384) -
assets
Reversal of impairment on property, plant and equipment (10,421) -
Gain from sale of office assets (60) -
Gain on derivative financial liability - (610)
Change in non-cash working capital (1,092) 1,288
------------------
Cash used in operating activities (9,450) (7,819)
------------------
Investing activities
Additions to evaluation and exploration assets (22,869) (6,045)
Additions to property, plant and equipment (3,533) (975)
Short-term investments 23,176 (23,176)
Interest income 100 70
Net (reduction)/increase in long-term receivable (365) 301
Proceeds from sale of office assets 62 -
Change in non-cash working capital 4,454 1,958
------------------
Cash provided by/(used in) investing activities 1,025 (27,867)
------------------
Financing activities
Issue of share capital, net of share issue costs 150 42,190
Net proceeds from long-term loan 5,715 9,887
Repayment of long-term loan (6,000) (10,036)
Interest paid (341) (561)
Repayment of other long-term liabilities (113) (645)
------------------
Cash (used in)/provided by financing activities (589) 40,835
------------------
Net change in cash and cash equivalents (9,014) 5,149
Cash and cash equivalents, beginning of the year 14,501 9,352
------------------
Cash and cash equivalents, end of the year 5,487 14,501
------------------
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.
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, 2014,
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.
Annual 2014 Financial Statements:
http://hugin.info/136496/R/1903591/676980.pdf
2014 Report on Corporate Governance:
http://hugin.info/136496/R/1903591/676982.pdf
Annual 2014 MDA:
http://hugin.info/136496/R/1903591/676981.pdf
2015 03 16 Press Release:
http://hugin.info/136496/R/1903591/676983.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1903591]
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Datum: 16.03.2015 - 08:01 Uhr
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News-ID 378605
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