AI assistant
TOWER RESOURCES PLC — Earnings Release 2013
Feb 27, 2014
7980_rns_2014-02-27_1d9d20d3-c44c-49fb-b3ae-760aad1bfe86.html
Earnings Release
Open in viewerOpens in your device viewer
Wentworth Resources Limited : 2013 Full Year Results
Wentworth Resources Limited : 2013 Full Year Results
PRESS RELEASE
27 February 2014
Wentworth Resources Limited
("Wentworth" or the "Company")
2013 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 results for the year ended December 31, 2013.
The following should be read in conjunction with the audited 2013 Consolidated
Financial Statements and Management's Discussion & Analysis and Director's
Report which are available on the Company's website at
http://www.wentworthresources.com.
Highlights
Corporate
* Successfully completed a Private Placement and significantly oversubscribed
Subsequent Offering, issuing a total of 70,950,427 new common shares for
gross proceeds of USD 46 million.
* Secured a new long-term loan facility at 6% interest per annum and no
principal repayments due until the loan matures on December 31, 2017. A
principal balance of USD 6.0 million remains outstanding at year end. In
conjunction with the new loan facility, the lender was issued 5,000,000
share purchase warrants each exercisable into one common share of the
Company at USD 0.648 per warrant on or before December 31, 2015.
Financial
* Net loss of USD 9.99 million compared to a profit of USD 24.94 million in
2012 which includes a gain on sale of oil and gas assets of USD 29.80
million.
* Exploration capital expenditures of USD 6.05 million compared to USD 11.25
million in 2012.
* Cash and cash equivalents on hand and short-term deposits at December
31, 2013 totalled USD 37.68 million compared to USD 9.35 million on hand at
December 31, 2012.
* Working capital at December 31, 2013 of USD 38.37 million versus USD 16.61
million at December 31, 2012.
Operational and Geological
Mnazi Bay Block, Tanzania
* Continued consultations with the Government of Tanzania to conclude a Gas
Sales Agreement ("GSA") for the supply of natural gas to the Mtwara to Dar
es Salaam pipeline, which is under construction and expected to be completed
and commissioned during Q1 2015.
* Completed acquisition and processing with interpretation ongoing of 248
square kilometers of offshore 3D seismic.
* During the fourth quarter of 2013 commenced the acquisition of a combined
330 kilometers conventional and high resolution 2D seismic program.
Rovuma Onshore Block, Mozambique
* Completed the acquisition, processing and interpretation of 1,016 kilometers
of onshore 2D seismic over the northern section of the Block.
* Commenced pre-drilling planning activities including the procurement of long
lead items, site preparation and well planning in advance of the fully
funded 2014 exploration drilling campaign.
Resource Assessment
* Results of an independent resource assessment by RPS Energy ("RPS") of the
Company's Mozambique and Tanzania assets were announced during Q3 2013.
Certain key extracts from RPS' Competent Person's Report ("CPR") follow and
the complete updated CPR is available for download on the Company's website
at www.wentworthresources.com:
+---------------------------------------+--------+--------+---------+----------+
|Figures quoted are Wentworth's working | P90 | P50 | Mean | P10 |
|interest share | | | | |
+---------------------------------------+--------+--------+---------+----------+
|Rovuma Onshore, Mozambique (GAS CASE) |
+---------------------------------------+--------+--------+---------+----------+
|GIIP |551 Bscf|831 Bscf| 901 Bscf|1,340 Bscf|
+---------------------------------------+--------+--------+---------+----------+
|Prospective Resources (Unrisked)((1) ) |330 Bscf|504 Bscf| 550 Bscf| 825 Bscf|
+---------------------------------------+--------+--------+---------+----------+
|Rovuma Onshore, Mozambique (OIL CASE) |
+---------------------------------------+--------+--------+---------+----------+
|GIIP |425 Bscf|594 Bscf| 618 Bscf| 834 Bscf|
+---------------------------------------+--------+--------+---------+----------+
|OIIP |12 MMstb|88 MMstb|140 MMstb| 325 MMstb|
+---------------------------------------+--------+--------+---------+----------+
|Prospective Resources - gas |254 Bscf|359 Bscf| 375 Bscf| 513 Bscf|
|(Unrisked)((1)) | | | | |
+---------------------------------------+--------+--------+---------+----------+
|Prospective Resources - oil (Unrisked)(| 3 MMstb|22 MMstb| 32 MMstb| 90 MMstb|
|(1)) | | | | |
+---------------------------------------+--------+--------+---------+----------+
(1) Stochastic aggregation assuming all prospects are successful. The
probability of this occurring is the product of the individual GPoS of all
prospects and is extremely small. The individual prospect GPoS estimates are
included in the CPR.
RPS considers that the prospects' hydrocarbons are more likely to be gas than
oil. However, there is some possibility that the Tembo prospect may contain oil
(estimated by RPS to be about 30% - 40%), referred to above as "OIL CASE".
+----------------------------------------+--------+--------+--------+----------+
|Figures quoted are Wentworth's working | P90 | P50 | Mean | P10 |
|interest share | | | | |
+----------------------------------------+--------+--------+--------+----------+
|Mnazi Bay, Tanzania |
+----------------------------------------+--------+--------+--------+----------+
|GIIP - contingent |117 Bscf|285 Bscf|355 Bscf| 676 Bscf|
+----------------------------------------+--------+--------+--------+----------+
|Contingent Resources (Unrisked)((1)(2)) | 87 Bscf|213 Bscf|266 Bscf| 509 Bscf|
+----------------------------------------+--------+--------+--------+----------+
|GIIP - prospective |672 Bscf|958 Bscf|993 Bscf|1,357 Bscf|
+----------------------------------------+--------+--------+--------+----------+
|Prospective Resources (Unrisked)((1)) |425 Bscf|614 Bscf|637 Bscf| 879 Bscf|
+----------------------------------------+--------+--------+--------+----------+
(1) Stochastic aggregation assuming all prospects are successful. The
probability of this occurring is the product of the individual GPoS of all
prospects and is extremely small. The individual prospect GPoS estimates are
included in the CPR.
(2) Contingent resource estimates are for raw gas.
Outlook
* The construction of the Mtwara to Dar es Salaam pipeline is progressing well
and the Company expects to begin selling natural gas into the pipeline in Q1
2015. The Company continues to work towards the signing of the GSA with the
Tanzanian government.
* Processing and interpretation of this new seismic data during 2014 is
expected to support future appraisal/development and exploration drilling
which is anticipated to commence in Q4 2014 or Q1 2015.
* Drilling of two back-to-back exploration wells in the Rovuma Onshore License
in Mozambique, with an optional third well. The first well is expected to
spud in Q2 and take approximately 2 months to complete.
* The Company has the funds available to meet its currently planned capital
commitments for the year 2014 including acquiring onshore 2D seismic in
Tanzania, pre-drilling planning of one exploration or development well in
Tanzania and two firm plus one optional exploration well in the Rovuma
Onshore Block in Mozambique.
Geoff Bury, Managing Director, commented:
"We are pleased with the progress being made on the pipeline connecting our gas
fields in the Mtwara region of Tanzania to the capital Dar es Salaam. This
pipeline will open up new markets for our natural gas and we look forward to it
coming on-stream in Q1 2015. Following the successful equity financing
concluded during Q4 2013, Wentworth has a solid balance sheet and is fully
funded for our planned 2014 exploration activities. Exploration drilling in our
Mozambique block is expected to commence in Q2 2014 and positive results could
have a significant impact on the value of our assets. We look forward to
updating shareholders on these exciting activities in due course."
Enquiries:
Wentworth Lance Mierendorf, [email protected]
Chief Financial +1 403 680 8773
Officer
Eric Fore, Finance [email protected]
& Investor +971 (0) 50 458 0422
Relations Manager
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
Fredrik Eeg
Panmure Gordon AIM Nominated +44 (0) 20 7886 2500
Adviser and Broker
(UK)
Katherine Roe
Callum Stewart
Adam James
Tom Salvesen
FirstEnergy Broker (UK) +44 (0) 20 7448 0200
Capital
Majid Shafiq
Travis Inlow
Investec Broker (UK) +44 (0) 20 7597 4000
Ben Colegrave
Chris Sim
Instinctif Investor Relations +44 (0) 20 7457 2020
Partners Adviser (UK)
Catherine Wickman
Harry Cameron
Notes and Glossary
Partners in the Mnazi Bay PSA are:
Maurel et Prom: 60.075% (Operator) through exploration; 48.06%
production
Wentworth: 39.925% through exploration; 31.94% production
TPDC: 20% production
Partners in the Rovuma Onshore License are:
Anadarko: 42% (Operator) through exploration; 35.7%
production
Wentworth: 13.64% through exploration; 11.59% production
Maurel et Prom: 32.6% through exploration; 27.71% production
PTTEP: 11.76% through exploration; 10% production
ENH: 15% production
The terms 'Discovered and Undiscovered Oil or Gas Initially-in-Place' are used
in accordance with the SPE Petroleum Resources Management System classification
of 2007. Previously reported Contingent and Prospective Gas Initially-in-Place
numbers are equivalent to the Discovered and Undiscovered GIIP classification.
This announcement and the Competent Person's Report have been prepared using the
Standard of SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007.
Gerold Fong, Vice President of Exploration (BSC Geophysics, 1982) who has 31
years of experience in the exploration and production industry, has read and
approved the technical disclosure in this regulatory announcement.
+----------------------+-------------------------------------------------------+
|Bscf |billion standard cubic feet |
+----------------------+-------------------------------------------------------+
|Contingent Resources |Quantities of petroleum estimated, as at a given date,|
| |to be potentially recoverable from known accumulations,|
| |but the applied project(s) are not yet considered|
| |mature enough for commercial development due to one or|
| |more contingencies |
+----------------------+-------------------------------------------------------+
|GPoS |Geological probability of success |
+----------------------+-------------------------------------------------------+
|GIIP |Gas Initially In Place |
+----------------------+-------------------------------------------------------+
|MMstb |million barrels |
+----------------------+-------------------------------------------------------+
|OIIP |Oil Initially in Place |
+----------------------+-------------------------------------------------------+
|Prospective Resources |Deposits that are estimated, on a given date, to be|
| |potentially recoverable from accumulations yet to be|
| |discovered |
+----------------------+-------------------------------------------------------+
|PSA |Production sharing agreement |
+----------------------+-------------------------------------------------------+
|P90, P50, Mean and P10|the extent to which an event is likely to occur,|
| |measured by the ratio of the favorable cases to the|
| |whole number of cases possible (probability of|
| |90%, 50%, arithmetic average and 10%, respectively) |
+----------------------+-------------------------------------------------------+
Financial Statements
The following primary statements have been extracted from the 2013 audited
consolidated financial statement which are located on the Company's website at
www.wentworthresources.com.
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Financial Position
United States dollars $000s, unless otherwise stated
December 31, December 31,
2013 2012
----------------------------------------------
ASSETS
Current assets
Cash and cash equivalents 14,501 9,352
Short-term investments 23,176 -
Trade and other receivables 1,845 2,376
Prepayments, deposits and 1,674 2,028
advances to partners
Current portion of long-term 658 657
receivables
Other receivables - power - 11,584
----------------------------------------------
41,854 25,997
----------------------------------------------
Non-current assets
Long-term receivables 28,661 23,151
Exploration and evaluation 50,636 44,591
assets
Property, plant and equipment 18,498 17,974
----------------------------------------------
97,795 85,716
----------------------------------------------
Total assets 139,649 111,713
----------------------------------------------
LIABILITIES
Current liabilities
Trade and other payables 3,487 3,074
Current portion of long-term - 2,498
loans
Other liabilities - power - 3,819
----------------------------------------------
3,487 9,391
----------------------------------------------
Non-current liabilities
Long-term loans 3,816 3,668
Other long-term liabilities 2,836 3,470
Decommissioning provision 685 600
----------------------------------------------
7,337 7,738
----------------------------------------------
Equity
Share capital 403,998 361,675
Equity reserve 23,903 21,996
Accumulated deficit (299,076) (289,087)
----------------------------------------------
128,825 94,584
----------------------------------------------
Total liabilities and equity 139,649 111,713
----------------------------------------------
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Comprehensive Income / (Loss)
United States dollars $000s, unless otherwise stated
Year ended December
31,
2013 2012
----------------------
Continuing operations
Total revenue 955 820
Operating expenses
Production and operating (1,656) (1,404)
General and administrative (7,931) (7,829)
Share based compensation (362) (682)
Depreciation and depletion (451) (488)
Gain from sale of oil and gas assets - 29,799
----------------------
(Loss)/income from operating activities (9,445) 20,216
Gain on derivative financial liability 610 1,298
Finance income 5,266 3,718
Finance costs (6,420) (3,246)
----------------------
Net (loss)/income before discontinued operations (9,989) 21,986
----------------------
Discontinued operations
Income from discontinued operations - 2,957
----------------------
Net (loss)/income and comprehensive (loss)/income (9,989) 24,943
----------------------
Net (loss)/income and comprehensive (loss)/income
attributable to:
Equity holders of the parent (9,989) 24,739
Non-controlling interest - 204
----------------------
(9,989) 24,943
----------------------
Net (loss)/income per ordinary share - continuing
operations
Basic (US$/share) (0.11) 0.27
Diluted (US$/share) (0.11) 0.25
----------------------
Net income per ordinary share - discontinued
operations
Basic and diluted (US$/share) - 0.04
----------------------
Net (loss)/income per ordinary share
Basic diluted (US$/share) (0.11) 0.31
Diluted (US$/share) (0.11) 0.29
----------------------
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Changes in Equity
United States dollars $000s, unless otherwise stated
Number of Share Equity Accumulated Equity Non- Total
shares capital reserve attributable controlling equity
deficit to interest
shareholders
$ $ $ $ $ $
-------------------------------------------------------------------------
Balance at 80,469,940 360,250 17,057 (313,826) 63,481 5,685 69,166
January 1, 2012
Net income and - - - 24,739 24,739 204 24,943
comprehensive
income
Share based - - 682 - 682 - 682
compensation
Issue of share 34,000 31 (10) - 21 - 21
capital on
exercise of
share options
Issue of share 2,000,000 1,394 - - 1,394 - 1,394
capital
Acquisition of - - 4,267 - 4,267 (5,889) (1,622)
non-controlling
interest
-------------------------------------------------------------------------
Balance at 82,503,940 361,675 21,996 (289,087) 94,584 - 94,584
December
31, 2012
-------------------------------------------------------------------------
Balance at 82,503,940 361,675 21,996 (289,087) 94,584 - 94,584
January 1, 2013
Net loss and - - - (9,989) (9,989) - (9,989)
comprehensive
loss
Reclassification - - 1,678 - 1,678 - 1,678
of warrants
Share based - - 362 - 362 - 362
compensation
Issue of share 418,333 400 (133) - 267 - 267
capital on
exercise of
share options
Issue of share 70,950,427 45,800 - - 45,800 - 45,800
capital on
private
placement and
subsequent
offering
Share issue - (3,877) - - (3,877) - (3,877)
costs
-------------------------------------------------------------------------
Balance at 153,872,700 403,998 23,903 (299,076) 128,825 - 128,825
December
31, 2013
-------------------------------------------------------------------------
WENTWORTH RESOURCES LIMITED
Consolidated Statement of Cash Flows
United States dollars $000s, unless otherwise stated
Year ended December
31,
2013 2012
----------------------
Operating activities
Net (loss)/income for the year (9,989) 24,943
Adjustments for:
Share based compensation 362 682
Depreciation and depletion 451 622
Finance cost/(income) 679 (580)
Gain on derivative financial liability (610) (1,298)
Gain from sale of oil and gas assets - (29,799)
Gain on sale of discontinued operations - (3,041)
Unrealized foreign exchange 18 (183)
Change in non-cash working capital 1,270 (8,590)
----------------------
Cash used in operating activities (7,819) (17,244)
----------------------
Investing activities
Additions to evaluation and exploration assets (6,045) (11,252)
Additions to property, plant and equipment (975) (403)
Proceeds from sale of oil and gas assets - 18,860
Proceeds from sale of discontinued operations - 13,500
Increase in short-term investments (23,176) -
Interest income received 70 60
Net reduction/(increase) in long-term receivable 301 (1,117)
Acquisition of non-controlling interest - (1,622)
Change in non-cash working capital 1,958 2,175
----------------------
Cash (used in)/provided by investing activities (27,867) 20,201
----------------------
Financing activities
Issue of share capital, net of share issue costs 41,923 -
Issue of share capital on exercise of share options 267 21
Proceeds from long-term loan, net of costs 9,887 -
Repayment of long-term loans (10,036) (1,232)
Interest paid (561) (634)
Repayment of other long-term liabilities (645) (833)
----------------------
Cash provided by/(used in) financing activities 40,835 (2,678)
----------------------
Net change in cash and cash equivalents 5,149 279
Cash and cash equivalents, beginning of the year 9,352 9,073
----------------------
Cash and cash equivalents, end of the year 14,501 9,352
----------------------
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.
Gerold Fong, Vice President of Exploration (BSC Geophysics, 1982) who has 31
years of experience in the exploration and production industry, has read and
approved the technical disclosure in this regulatory announcement.
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, 2013,
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.
[HUG#1765038]