19th May 2015 09:57
LONDON (Alliance News) - Wentworth Resources Ltd Tuesday reported a wider net loss for the first quarter of 2015 as the company edges closer to delivering its first gas in Tanzania in the third quarter of the year.
The gas company operating in Tanzania and Mozambique reported a USD2.7 million net loss in the quarter ended March 31, compared with a USD845,000 loss a year earlier.
The wider loss came as finance income dropped to USD1.3 million from USD1.6 million whilst finance costs rose to USD1.9 million from USD277,000. Production and operating expenses rose to USD504,000 from USD372,000 but administrative costs fell to USD1.5 million from USD1.8 million.
The company generates a small amount of revenue, which rose to USD272,000 in the quarter compared with USD236,000 a year earlier.
The company raised its spending in the quarter, with exploration expenditure rising to USD7.0 million from USD4.8 million whilst development capital expenditure rose to USD2.6 million from USD480,000. However, working capital fell to USD11.0 million from USD15.8 million a year earlier.
At the end of March, Wentworth had a cash balance of USD4.4 million, slightly down from the USD5.5 million it had on hand at the end of December 2014.
Wentworth is currently focusing on finalising the payment guarantee documentation for the gas sales agreement with the Tanzanian government to enable the sale of gas from the Mnazi Bay and Msimbati gas fields to the government-owned pipeline, which is expected to be commissioned in the third quarter of 2015 following a three-month delay announced in March.
The MB-4 well on the Mnazi Bay field was drilled in March and is expected to be completed in June, leading to gas production in July.
"We have made further progress this quarter towards delivery of first gas into the new pipeline with our continued tie-in work of the existing wells, the commencement of the MB-4 development well to further de-risk the existing fields and continued negotiations towards finalising the payment guarantee documentation," said Managing Director Geoff Bury.
Wentworth shares were down 1.3% to 29.25 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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