Wentworth Resources Limited : 2015 Full Year Results
(Thomson Reuters ONE) -
PRESS RELEASE
25 February 2016
Wentworth Resources Limited
("Wentworth" or the "Company")
2015 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
2015.
The following should be read in conjunction with the 2015 Management Discussion
and Analysis ("MD&A") and Consolidated Financial Statements which are available
on the Company's website at http://www.wentworthresources.com.
An independent reserves assessment of the Company's Tanzanian gas assets has
also been completed and was released today. The full report is available on the
Company's website at www.wentworthresources.com. The Annual Statement of
Reserves 2015 has been included in the 2015 MD&A.
2015 HIGHLIGHTS
Corporate
* Independent reserves evaluation attributed Wentworth's share of Proved +
Probable (2P) reserves in the Company's Tanzania gas fields valued at
US$179.2 million NPV (10%) after tax at December 31, 2015.
* Successful completion of a private placement on 1 July 2015 and issue of
15,412,269 new common shares for cash consideration of $0.50 (GBP0.315 or
NOK3.88) per share, for total gross proceeds of $7.64 million from new and
existing shareholders.
* Agreement reached on payment security terms between Mnazi Bay Concession
parties and the gas purchaser and first gas delivery to the new government
owned Mtwara to Dar es Salaam natural gas pipeline commenced on 20 August
2015.
Financial
* Gas sales revenue of $4.64 million, up 337% from 2014 due to the
commencement of gas sales to the new Mtwara to Dar es Salaam gas pipeline
during Q3 2015.
* Net income of $27.03 million, $0.17 per share (2014 - $15.28 million, $0.10
per share).
* As a consequence of commencing deliveries of commercial quantities of gas
under a long-term gas sales agreement and obtaining an independent reserve
report for the Company's share of gas reserves in Tanzania, the Company
recognized a non-cash deferred tax asset of $34.34 million during Q4 2015
and a non-cash impairment reversal of $23.81 million during 2014.
* Development and exploration capital expenditures of $11.84 million and $9.38
million, respectively.
* Yearend cash and cash equivalents on hand of $2.75 million (2014 - $5.49
million).
Operational
Mnazi Bay Block, Tanzania
* First gas delivery to the new government owned Mtwara to Dar es Salaam
natural gas pipeline commenced on 20 August 2015.
* Average gross daily gas production of 46 MMscf/d during the fourth quarter
and 16 MMscf/d for 2015, with an expected increase up to 70-80 MMscf/d by
the end of Q1 2016 as gas turbines at existing and new power generation
facilities are commissioned and become fully operational.
* Continued construction of field infrastructure connecting the Mnazi Bay gas
assets to the government owned gas pipeline.
* Completed drilling of the MB-4 development well in the Mnazi Bay Concession.
MB-4 was drilled to a total depth of 2,788 meters penetrating the Miocene
gas reservoirs with net pay of 24 meters (Upper Mnazi Bay) and 43 meters
(Lower Mnazi Bay) for a total net pay of 67 meters.
Rovuma Onshore Block, Mozambique
* Discussions continued with the Mozambican Government regarding the
assignment of the relinquishing parties' participation interest to the
remaining parties in the Concession, selection and appointment of an
operator of the Concession, determining the appraisal acreage for Tembo-1
gas discovery and agreeing to a multi-year appraisal plan.
* During the first quarter of 2015, the Kifaru-1 exploration well reached TD
3,100 meters in Eocene age rocks which contributed to our understanding of
the regional geology. The well encountered all targeted zones in the
Miocene, Oligocene and Eocene formations but failed to find an economic
reservoir and as a result the well was plugged and abandoned.
Geoff Bury, Managing Director, commented:
"2015 was a turning point year for our business; with gas from Mnazi Bay flowing
into the new pipeline and the start of meaningful revenue generation, Wentworth
exited 2015 in a strong financial position. The balance sheet will strengthen
throughout the coming year as gas deliveries climb to an anticipated gross
70-80 MMscf/day by the end of Q1 2016.
"We have also announced an increase of 20% in 2P reserves in our Tanzanian
Concession, which is testament to the prospectivity of the Mnazi Bay acreage.
The Company will carefully consider growth opportunities through acquisition,
farm-in and/or asset purchase leveraging, from an enviable positive cash flow
position and seek to take advantage of the buyers' market that is expected to
remain for much of the coming year."
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 Advisers Investor Relations +47 909 808 48
Adviser
(Norway)
Jan Petter Stiff
Carl Bachke
Stifel Nicolaus AIM Nominated +44 (0) 20 7710 7600
Europe Limited Adviser and Broker
(UK)
Callum Stewart
Ashton Clanfield
FirstEnergy Broker (UK) +44 (0) 20 7448 0200
Capital
Hugh Sanderson
FTI Consulting Investor Relations wentworth(at)fticonsulting.com
Adviser (UK) +44 (0) 20 3727 1000
Edward Westropp
Tom Hufton
Consolidated Financial Statements
The following primary statements have been extracted from the 2015 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,
2015 2014
------------------------------
ASSETS
Current assets
Cash and cash equivalents 2,746 5,487
Trade and other receivables 3,253 2,613
Prepayments, deposits and advances to partners 841 1,418
Current portion of long-term receivables 18,190 14,530
------------------------------
25,030 24,048
------------------------------
Non-current assets
Long-term receivables 18,897 19,472
Exploration and evaluation assets 43,141 33,762
Property, plant and equipment 95,168 85,035
Deferred tax asset 34,341 -
------------------------------
191,547 138,269
------------------------------
Total assets 216,577 162,317
------------------------------
LIABILITIES
Current liabilities
Trade and other payables 6,269 7,343
Current portion of long-term loans 5,270 -
Current portion of other liability 1,508 861
------------------------------
13,047 8,204
------------------------------
Non-current liabilities
Long-term loans 20,512 5,718
Other liability 1,634 2,271
Decommissioning provision 973 782
------------------------------
23,119 8,771
------------------------------
Equity
Share capital 411,493 404,225
Equity reserve 25,683 24,916
Accumulated deficit (256,765) (283,799)
------------------------------
180,411 145,342
------------------------------
Total liabilities and equity 216,577 162,317
------------------------------
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Comprehensive Income/(Loss)
United States $000s, unless otherwise stated
Year ended December
31,
2015 2014
----------------------
Total revenue 4,637 1,060
Operating expenses
Production and operating (3,214) (2,592)
General and administrative (6,367) (6,826)
Share based compensation (767) (1,090)
Depreciation and depletion (1,707) (542)
Reversal of impairment on exploration and evaluation - 13,384
assets
Reversal of impairment on property, plant and equipment - 10,421
Gain from sale of office assets - 60
----------------------
Loss/(profit) from operating activities (7,418) 13,875
Finance income 5,047 5,914
Finance costs (4,936) (4,512)
----------------------
Net (loss)/profit before tax (7,307) 15,277
----------------------
Deferred tax recovery 34,341 -
----------------------
Net profit and comprehensive income 27,034 15,277
----------------------
Net income per ordinary share
Basic and diluted (US$/share) 0.17 0.10
----------------------
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 153,872,700 403,998 23,903 (299,076) 128,825
December
31, 2013
Net profit 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 154,122,700 404,225 24,916 (283,799) 145,342
December
31, 2014
--------------------------------------------------------------
Balance at 154,122,700 404,225 24,916 (283,799) 145,342
December
31, 2014
Net income and - - - 27,034 27,034
comprehensive
income
Share based - - 767 - 767
compensation
Issue of share 15,412,269 7,639 - - 7,639
capital
Share issue - (371) - - (371)
costs, net of
tax
--------------------------------------------------------------
Balance at 169,534,969 411,493 25,683 (256,765) 180,411
December
31, 2015
--------------------------------------------------------------
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Cash Flows
United States $000s, unless otherwise stated
Year ended December 31,
2015 2014
------------------
Operating activities
Net profit for the year 27,034 15,277
Adjustments for:
Share based compensation 767 1,090
Depreciation and depletion 1,707 542
Finance loss, net (111) (1,402)
Reversal of impairment on exploration and evaluation - (13,384)
assets
Reversal of impairment on property, plant and equipment - (10,421)
Gain from sale of assets - (60)
Deferred tax (34,341) -
Change in non-cash working capital 175 (1,092)
------------------
Net cash utilized in operating activities (4,769) (9,450)
------------------
Investing activities
Additions to evaluation and exploration assets (10,299) (19,064)
Additions to property, plant and equipment (12,926) (2,945)
Additions to long-term receivable (1,116) (304)
Proceeds from sale of office assets - 62
Conversion of term deposits to cash - 23,176
Interest income 7 100
------------------
Net cash (used in)/from investing activities (24,334) 1,025
------------------
Financing activities
Issue of share capital, net of issue costs 7,268 150
Proceeds from long-term loan, net of finance costs 20,000 5,715
Repayment of long-term loan - (6,000)
Interest paid (906) (341)
Repayment of other long-term liability - (113)
------------------
Net cash from/(used in) financing activities 26,362 (589)
------------------
Net change in cash and cash equivalents (2,741) (9,014)
Cash and cash equivalents, beginning of the year 5,487 14,501
------------------
Cash and cash equivalents, end of the year 2,746 5,487
------------------
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, 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.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
2015 Report on Corporate Governance:
http://hugin.info/136496/R/1989186/730525.pdf
Q4 2015 MDA and Financial Statements:
http://hugin.info/136496/R/1989186/730523.pdf
Annual 2015 MDA and Financial Statements:
http://hugin.info/136496/R/1989186/730524.pdf
2016 02 25 Press Release:
http://hugin.info/136496/R/1989186/730526.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#1989186]
Unternehmensinformation / Kurzprofil:
Datum: 25.02.2016 - 08:02 Uhr
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News-ID 453204
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