2013-08-22 08:06:03 -
August 22, 2013
Wentworth Resources Limited
("Wentworth" or the "Company")
Q2 2013 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 second quarter and six months ended June
The following should be read in conjunction with the Q2 2013 Management
Discussion and Analysis and Financial Statements which are available on the
Company's website at www.wentworthresources.com
Q2 2013 HIGHLIGHTS
* Secured a $10 million, long-term debt facility from Vitol Group ("Vitol"), a
leading physical energy trading house and shareholder of Wentworth. In
conjunction with the loan, Vitol was issued 5,000,000 share purchase
warrants each exercisable into one common share of the Company on or before
December 31, 2015 at an exercise price of US$1.24 per share.
* Continued processing and interpreting of newly acquired seismic in both the
Rovuma Onshore Block in Mozambique and the Mnazi Bay Concession in
* Negotiations of a gas sales agreement ("GSA") continued with the Government
of Tanzania to supply Mnazi Bay Concession natural gas to the planned Mtwara
to Dar es Salaam Pipeline which is expected to be completed at the end of
* Second quarter exploration capital expenditures of $0.62 million compared to
$1.22 million during the same period in 2012.
* Revenues from continuing operations for the quarter of $0.24 million, up by
33% from Q2 2012.
* Loss from operating activities for the quarter of $2.49 million compared to
a loss of $2.22 million during the same period in 2012.
* Cash and cash equivalents on hand at June 30, 2013 of $4.51 million compared
to $9.35 million on hand at December 31, 2012.
* Working capital at June 30, 2013 of $8.69 million.
* The Company's immediate focus continues to be on concluding the GSA,
initially to supply 80 mmcf/day of gas from the Mnazi Bay and Msimbati gas
fields within our concession to the planned pipeline in Tanzania.
* A drilling rig has been contracted to drill two onshore exploration wells
plus an optional third well in Mozambique commencing in Q2 2014. Drilling
program planning has commenced including purchasing long lead items,
obtaining environmental permits and preparing site locations.
* Commencing in September 2013 the partners have agreed to acquire
approximately 320km of new onshore 2D seismic over the Mnazi Bay Concession.
A seismic contractor has been secured and the parameters of the acquisition
program are being developed.
* Capital available to the Company is expected to be sufficient to meet
currently approved capital and operational budget commitments into Q4 2013.
Management are assessing Wentworth's funding requirements and financing
options for the next phase of development.
Geoff Bury, Managing Director, commented:
"Securing a $10 million debt facility with favorable terms in June provided
Wentworth with the funds necessary to advance key initiatives which we expect
will have a significant impact on shareholder value.
In Tanzania, the Government and the Mnazi Bay partners are eager to reach
agreement on remaining issues and conclude a gas sales agreement in the near
future. Ongoing G&G studies, including interpretation of new offshore 3D and
onshore 2D seismic data, will help high-grade existing prospects; possibly
identify new prospects; and support future development of our resources.
In Mozambique, our operator and partner, Anadarko Petroleum, has secured a
drilling rig and the partners are finalizing well locations for two firm
exploration wells plus an optional third well in 2014.
As we enter this very busy and important phase of Wentworth's development we are
assessing our funding requirements and considering financing options. We look
forward to updating shareholders on all of these activities in the near future."
A supporting presentation is available for download on the Company's website at
www.wentworthresources.com, which will also be presented at the conference call
with management at 08:00 MDT (Calgary) / 15:00 BST (London) / 16:00 CEST (Oslo).
Please refer to the Company's announcement of 16 August 2013 for further
Wentworth Lance Mierendorf, CFO firstname.lastname@example.org
Eric Fore, Finance, email@example.com
Investor & +971 (0) 50 458 0422
Panmure Gordon Nominated adviser & +44 (0) 20 7886 2500
FirstEnergy Broker +44 (0) 20 7448 0200
College Hill Investor relations +44 (0) 20 7457 2020
Crux Kommunikasjon Investor relations +47 995 138 91
Jan Petter Stiff
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.
Gerold Fong, (BSC Geophysics, 1982) the company's competent person, is the Vice
President of exploration for the company. Gerold Fong has 31 years of experience
in the exploration and production industry.
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, 2012,
available on Wentworth's website, for further description of the risks and
uncertainties associated with Wentworth's business.
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.
Q2 2013 Financial Statements:
Q2 2013 MDA and Directors Report:
2013 08 22 Press Release:
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