Wentworth Resources Posts Loss for H1 2016 Despite Gas Sales Increase

East Africa-focused oil & gas company Wentworth Resources which operates in Tanzania and Mozambique has posted another $0.17 million net loss in Q2 bringing the total loss to $1.08  million for the six month period ending June 30th 2016.

During this quarter gas sales revenue rose to $3.43 million as compared to $0.29 million in same period last year as the company achieved an average gross daily gas production of 51 MMscf/d in Q2 as compared to first quarter production of 48 MMscf/d.

This led to an increase in cash and cash equivalents to $6.29 million at June 30, 2016 from $2.75 million on hand at December 31, 2015

During the quarter exploration and development capital expenditures incurred were down to $2.16 million compared to $9.35 million during Q2 2015 due to installation of remaining components of permanent field infrastructure that was ongoing during Q2 2016 and is expected to be completed by the end of Q4 2016.

As per June 30, 2016 working capital was $7.28 million compared to $11.98 million at December 31, 2015.

Wentworth also commenced repayment of existing debt facility with $1.0m principal repayment during Q2 2016.

“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,” says Wentworth Resources Managing Director Geoff Bury.

During Q2 in the Rovuma Onshore basin in Mozambique the company 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.

In the concession Wentworth has 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.

“As operator of this concession we have the ability to match the timing of the appraisal activities to our available cash flow and with our increased interest we have the flexibility to seek industry partners to participate in this appraisal plan,” Bury concluded.

Author: OilNews

International award winning journalist with a nose for news in the extractives industry. Contact: +254724684368