Wentworth Resources Limited: Q2 2016 Financial Statements and MD&A

PRESS RELEASE
16 August 2016

Wentworth Resources Limited

("Wentworth" or the "Company")

Q2 2016 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 quarter ended 30 June 2016.

The following should be read in conjunction with the Q2 2016 Management Discussion and Analysis and Financial Statements which are available on the Company's updated website at http://www.wentworthresources.com (http://www.wentworthresources.com).

Q2 2016 HIGHLIGHTS

Financial

• Gas sales revenue of $3.43 million for the quarter, compared to $0.29 million in Q2 2015.   
• Net loss for the quarter of $0.17 million, compared to a net loss of $1.81 million in Q2 2015.
• Exploration and development capital expenditures of $2.16 million compared to $9.35 million during Q2 2015.
• Commenced repayment of existing debt facility with $1.0m principal repayment during Q2 2016.
• Increase in cash and cash equivalents to $6.29 million at June 30, 2016 from $2.75 million on hand at December 31, 2015.
• June 30, 2016 working capital was $7.28 million compared to $11.98 million at December 31, 2015.

Operational

Tanzania

• Achieved average gross daily gas production for the second quarter of 51 MMscf/d compared to first quarter production of 48 MMscf/d. 
• Installation of remaining components of permanent field infrastructure was ongoing during Q2 2016 and is expected to be completed by the end of Q4 2016.

Mozambique

• Received Mozambique Government approval of a two-year appraisal program for the Tembo gas discovery and increasing Wentworth's participation interest in the Tembo appraisal area of the Rovuma Onshore Block from 11.59 per cent to 85 per cent.  Wentworth has been appointed Operator.
• Commenced reprocessing existing 2D seismic data over the Tembo appraisal area as the first step in appraising the discovery.
• Preliminary evaluation of the Tembo-1 well results and the regional seismic evaluation suggests the possibility of a substantial hydrocarbon accumulation.

Geoff Bury, Managing Director, commented:

"In Tanzania, Wentworth has seen significant growth in gas sales since the start of operation of the new pipeline in August 2015. This provides the Company with consistent cash flow to fund our ongoing activities, service our debt facility and to build cash reserves.  As we continue to strengthen our balance sheet, we look forward to growing the Company without having to rely on the equity markets to do so.

We are extremely pleased to have reached an agreement with the Government of Mozambique to increase our participating interest to 85% in the Onshore Rovuma Block, to be appointed Operator of the block and to have agreed an appraisal plan for the Tembo discovery. This expands our portfolio in the Rovuma Basin, a region that has recently seen significant interest from super-majors and national oil companies. As operator of this concession we have the ability to match the timing of the appraisal activities to our available cashflow and with our increased interest we have the flexibility to seek industry partners to participate in this appraisal plan."

Enquiries:
Wentworth	Lance Mierendorf, Chief Financial Officer	[e-mail] (mailto:[e-mail]) [phone]
	Katherine Roe Vice President Corporate Development & Investor Relations	[e-mail] (mailto:[e-mail]) [phone]
Swedbank First Securities	Broker (Norway)	[phone]
	Ove Gusevik
	Jarand Loenne
Crux Advisers	Investor Relations Adviser (Norway)	[phone]
	Jan Petter Stiff
	Carl Bachke
Stifel Nicolaus Europe Limited	AIM Nominated Adviser and Broker (UK)	[phone]
	Callum Stewart
	Ashton Clanfield
FirstEnergy Capital	Broker (UK)	[phone]
	Hugh Sanderson
FTI Consulting	Investor Relations Adviser (UK)	[e-mail] (mailto:[e-mail]) [phone]
	Edward Westropp Tom Hufton

Financial Statements

The following primary statements have been extracted from the Q2 2016 unaudited consolidated financial statements which are located on the Company's website at www.wentworthresources.com (http://www.wentworthresources.com).

WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Financial Position
United States $000s, unless otherwise stated

	June 30, 2016	December 31, 2015
ASSETS
Current assets
Cash and cash equivalents	6,285	2,746
Trade and other receivables	5,205	3,253
Prepayments, deposits and advances to partners	257	841
Current portion of long-term receivables	15,024	18,190
	26,771	25,030
Non-current assets
Long-term receivables	18,423	18,897
Exploration and evaluation assets	44,253	43,141
Property, plant and equipment	94,576	95,168
Deferred tax asset	33,962	34,341
	191,214	191,547
Total assets	217,985	216,577
LIABILITIES
Current liabilities
Trade and other payables	9,790	6,269
Current portion of long-term loans	8,595	5,270
Current portion of other liability	1,108	1,508
	19,493	13,047
Non-current liabilities
Long-term loans	16,225	20,512
Other liability	1,504	1,634
Decommissioning provision	1,067	973
	18,796	23,119
Equity
Share capital	411,493	411,493
Equity reserve	26,047	25,683
Accumulated deficit	(257,844)	(256,765)
	179,696	180,411
Total liabilities and equity	217,985	216,577

WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss
United States $000s, unless otherwise stated

	Three months ended June 30,		Six months ended June 30,
	2016	2015	2016	2015
Total revenue	3,430	292	6,636	564
Operating expenses
Production and operating	(773)	(1,389)	(1,670)	(1,893)
General and administrative	(1,556)	(1,356)	(3,068)	(2,853)
Depreciation and depletion	(1,189)	(122)	(2,303)	(228)
Share based compensation	(136)	(152)	(364)	(458)
Loss from operating activities	(224)	(2,727)	(769)	(4,868)
Finance income	1,072	1,387	2,339	2,694
Finance costs	(1,062)	(472)	(2,270)	(2,354)
Loss before tax	(214)	(1,812)	(700)	(4,528)
Deferred tax recovery/(expense)	40	-	(379)	-
Net loss and comprehensive loss	(174)	(1,812)	(1,079)	(4,528)
Net loss per ordinary share
Basic and diluted (US$/share)	(0.00)	(0.01)	(0.01)	(0.03)

WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Changes in Equity
United States $000s, unless otherwise stated

	Number of shares	Share capital	Equity reserve	Accumulated deficit	Total equity
		$	$	$	$
Balance at December 31, 2014	154,122,700	404,225	24,916	(283,799)	145,342
Net loss and comprehensive loss	-	-	-	(4,528)	(4,528)
Share based compensation	-	-	458	-	458
Balance at June 30, 2015	154,122,700	404,225	25,374	(288,327)	141,272
Balance at December 31, 2015	169,534,969	411,493	25,683	(256,765)	180,411
Net loss and comprehensive loss	-	-	-	(1,079)	(1,079)
Share based compensation	-	-	364	-	364
Balance at June 30, 2016	169,534,969	411,493	26,047	(257,844)	179,696

WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Cash Flows
United States $000s, unless otherwise stated

		Three months ended June 30,		Six months ended June 30,
	2016		2015	2016	2015
Operating activities
Net loss for the period	(174)		(1,812)	(1,079)	(4,528)
Adjustments for:
Depreciation and depletion	1,189		122	2,303	228
Finance income, net	(10)		(915)	(69)	(340)
Deferred tax (recovery)/expense	(40)		-	379	-
Share based compensation	136		152	364	458
Change in non-cash working capital	(88)		2,448	(1,027)	2,378
Net cash generated from/(utilized in) operating activities	1,013		(5)	871	(1,804)
Investing activities
Acquisitions of evaluation and exploration assets	-		(1,355)	-	(7,152)
Acquisitions of property, plant and equipment	(9)		(4,138)	(9)	(7,400)
Reductions of/(additions to) long-term receivable	2,699		(829)	5,295	(1,504)
Net cash from/(used in) investing activities	2,690		(6,322)	5,286	(16,056)
Financing activities
Repayment of long-term loan	(1,000)		-	(1,000)	-
Proceeds from long-term loan	-		4,359	-	14,839
Interest paid	(251)		(242)	(1,024)	(242)
Payment of other liability	(221)		-	(594)	-
Net cash (used in)/from financing activities	(1,472)		4,117	(2,618)	14,597
Net change in cash and cash equivalents	2,231		(2,210)	3,539	(3,263)
Cash and cash equivalents, beginning of the period	4,054		4,434	2,746	5,487
Cash and cash equivalents, end of the period	6,285		2,224	6,285	2,224

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, 2015, 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.

 

2016 08 16 Press Release (http://hugin.info/136496/R/2035376/758034.pdf)
Q2 2016 MDA (http://hugin.info/136496/R/2035376/758033.pdf)
Q2 2016 Financial Statements (http://hugin.info/136496/R/2035376/758032.pdf)

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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Wentworth Resources Limited via Globenewswire

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