12th May 2016 10:24
LONDON (Alliance News) - Wentworth Resources Ltd Thursday said a considerable rise in revenue helped to narrow its loss during the first quarter of the year as it continues to increase production in Tanzania, albeit slightly slower than expected.
The company reported a pretax loss of USD486,000 in the three months to the end of March, shrinking from the USD2.7 million loss booked in the same period a year earlier.
A drop in finance costs and a considerable rise in revenue to USD3.2 million from USD272,000 were the causes of the narrower loss, partly offset by a small rise in administrative costs and a rise in depreciation costs to USD1.1 million from USD106,000.
Revenue stepped up due to the developments in Tanzania, where Wentworth produced 48.0 million standard cubic feet of gas per day in the period, rising to 65.0 million standard cubic feet by the end of March.
Wentworth said that production will rise to 70.0 to 80.0 million standard cubic feet "over the coming months," and production levels are then expected to remain in that region for the rest of 2016, it said.
The company had already unveiled that target, but had said it wanted to reach that level by the end of the first quarter - meaning it is behind schedule.
The company said the Mnazi Bay wells in Tanzania are "performing exceptionally well" and are capable of delivering volumes in excess of current production.
Wentworth is also focused on building up its cash pile, and said it spent minimal amounts on field development during the first quarter, allowing its cash balance to rise to USD4.1 million from USD2.8 million at the end of 2015.
In Mozambique, Wentworth secured approval for its appraisal programme which will start with the Tembo-1 gas discovery. Wentworth is in the process of becoming the operator.
Wentworth shares were flat on Thursday morning at 32.25 pence.
By Joshua Warner; [email protected]; @JoshAlliance
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