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 calendar year 2017.
Tanzania (Mnazi Bay)
Increased average gross daily gas production of 49.1 MMscf/d (2016: 43.0 MMscf/d). Gross gas sales volumes increased by 14 percent in 2017.
Exit daily gas production rate of 73.4 MMscf/d
The Company received total cash payments of $18.57 million relating to gas sales and recovery of the long-term government receivable during 2017.
During the course of 2017, gas sales receivables from the main purchaser of gas increased from two to four months in arrears. Regular payments have been received since Q2 2017. The Company continues to proactively manage working capital, by matching settlement obligations with gas sales payment timing.
Completed an integrated technical evaluation of the Wentworth operated Rovuma Onshore Appraisal Block, post the Tembo-1 well (2014), including reprocessing existing 2-D seismic data.
Commenced well planning for a Tembo gas discovery appraisal, including optimising well design and costs, selecting a location, obtaining necessary environmental permits and initiating long lead time equipment procurement activities.
Launched a farm-out process to secure an industry partner to participate in the joint venture, in advance of planned drilling.
The Company has formally requested a one-year extension of the Appraisal License and continues to advance pre-drilling planning activities.
Wentworth's share of Tanzanian Proved + Probable (2P) reserves are US$159.6 million NPV (10%) after tax at 31 December 2017, as independently valued by RPS Canada.
Mnazi Bay gas fields net 2P reserves were 115.1 Bscf (19.2 Mmboe) at December 31, 2017.
Completed a private placement on 23 May 2017 issuing 16,953,496 new common shares for total gross proceeds of $5.53 million.
Improved principal payment timing on existing $20.0 million credit facility and secured new $2.5 million overdraft facility for working capital purposes.
Initiated relocation of executive management and head office from Calgary, Canada to London, UK.
Increased Mnazi Bay gas sales revenue to $13.44 million, up 14 percent from 2016, due to gas-fired Kinyerezi-1 and Ubungo-II power stations operating at near full capacity during the second half of 2017, Kinyerezi-2 gas-fired power station commencing commissioning during Q4 2017 and lower quantities of gas supplied by industry competitors.
Net loss of $0.71 million (2016: $5.09 million net loss).
Incurred exploration capital expenditures of $2.38 million to advance the appraisal of the Tembo Appraisal License and development capital expenditures of $1.06 million on field infrastructure (tie-in) improvements in the Mnazi Bay Concession in Tanzania.
Cash and cash equivalents on hand of $3.75 million (2016: $0.98 million) as at December 31, 2017.
Working capital of $15.48 million (2016: $4.96 million).
Ongoing focus on capital discipline with 15% reduction in G&A expenses to $4.61 million.
Reduced outstanding long-term loans by $5.35 million of principal repayments during 2017. Carrying value of long-term loans at year-end was $15.15 million.
In compliance with both reporting obligations as a public company, commencing in 2018, the Company will now release a Half Yearly Financial Report and an Annual Financial Report. The Company will no longer publish first quarter and third quarter financial statements and management discussion and analyses as these are no longer mandatory filing obligations.
Geoff Bury, Managing Director, commented:
"2017 was a very positive year for Wentworth where we benefited from an increase in production to an average of 62 MMscf/d in Q4 and reached an exit rate of 73 MMScf/d, resulting in continued strengthening of our Company. Wentworth enters 2018 in a strong and stable financial position enabling us to continue to grow the Company and to enhance shareholder value. With the relocation of the head office to London I will soon be stepping down as Managing Director, so I would like to take this opportunity to thank our shareholders for their support and thank Wentworth's Board, management and staff for their hard work and dedication."
A conference call for investors, analysts and other interested parties will be held today at 08.00 MDT (Calgary) / 15.00 BST (London) / 16.00 CEST (Oslo).