Wentworth Resources Limited, the Oslo Stock Exchange and London Stock Exchange listed independent, East Africa-focused oil & gas company, announces its results for the year ended December 31, 2012.
Asset swap and disposition
- Completed an asset swap by disposing of a royalty interest in Mozambique in exchange for an increased participation interest in the Mnazi Bay Concession in Tanzania. Realized a gain on the sale of $29.80 million
- Received cash consideration of $18.86 million upon completion of the exercise of pre-emption rights of an industry partner in the Mnazi Bay Concession
Sale of power plant and associated assets
- Disposed of its' 100% owned 18MW power plant and associated assets located in Mtwara, Tanzania for a cash consideration of $13.50 million plus $0.58 million of inventory on hand
Mnazi Bay Block, Tanzania
- The Tanzanian government inaugurated the Mnazi Bay to Dar es Salaam gas transportation pipeline project in July and laid the foundation stone in November
- Drilled an exploration well that encountered hydro-carbons in a new reservoir interval not previously encountered in the concession area
- Completed work-overs of three existing gas wells in preparation for full production into the new pipeline
- Commenced an offshore 3D seismic program covering approximately 250 square kilometers in December. The seismic data acquisition was completed in January 2013
Onshore Rovuma Block, Mozambique
- Commenced an infill onshore 2D seismic program in Q2 2012 covering 1,016 kilometers on the northern section of the block. The seismic data acquisition was completed in February 2013.
- Revenues from continuing operations of $0.82 million, up 10% from 2011
- Net profit in 2012 of $24.94 million compared to a loss of $6.25 million in 2011
- Acquired all non-controlling interest in Tanzanian assets for $1.62 million
- Cash and cash equivalents on hand at December 31, 2012 of $9.35 million compared to $9.07 million on hand at December 31, 2011
- Working capital, excluding assets and liabilities of discontinued operations, at December 31, 2012 of $8.84 million
- Construction by third party contractors of the Mnazi Bay to Dar es Salaam gas transportation pipeline project is expected to be completed by mid-2014
- The Company, along with our Mnazi Bay Concession partners, are working with the Tanzanian government to finalize a gas sales agreement to initially supply 80 mmcf/day of gas to the planned 532km Mtwara to Dar es Salaam gas pipeline
- Ended the year in a strong financial position and will continue to assess attractive opportunities to grow the asset portfolio
Geoff Bury, Managing Director, commented:
"2012 was a transitional year for Wentworth during which exploration and development operations in Tanzania and Mozambique were financed through strategic asset transactions netting the Company in excess of $30 million. The recent completion of seismic field acquisitions in both Tanzania and Mozambique and ongoing processing and interpretation provides the basis for active exploration and drilling in 2013 and 2014. In addition, noticeable progress has been made on the construction of a 532 km pipeline connecting our gas fields in the Mtwara region of Tanzania to the capital Dar es Salaam which is expected to provide a market for the Company's gas resources in 2014. The Company, its partners in the Mnazi Bay Concession and the government of Tanzania are working diligently to conclude a gas sales agreement which will set the foundation for the next phase in the Company's growth strategy."
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