13th Aug 2015 08:11
LONDON (Alliance News) - East Africa-focused oil and gas company Wentworth Resources Ltd on Thursday said its net loss for the first half was slightly due to higher costs in the first half, as it continues work on the Mnazi Bay gas project in Tanzania.
The company said its net loss in the first half to the end of June was USD4.5 million, sharply widened from the USD2.2 million it posted a year earlier, primarily due to financing costs it booked in the half as it raised funds for Mnazi Bay. Its operating expenses also rose slightly, as a fall in administrative expenses was offset by higher production and operating costs.
"The recent successful equity raise completed on July 1 demonstrates confidence in our long-term investment strategy in East Africa. These new funds further secure the company's balance sheet in advance of generating cash flow from natural gas sales to the new government owned transnational pipeline in Tanzania," said Wentworth Managing Director Geoff Bury.
"With discussion in regards to the payment guarantee agreement at an advanced stage, the company looks forward to bringing gas on stream in the weeks ahead," Bury said, commenting on the positive development well results from Mnazi Bay.
The company said discussions on natural gas deliveries from the site are at an advanced stage and are expected to be completed in the third quarter.
Wentworth shares were untraded on Thursday morning, having last traded at 29.90 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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