News Column

Wentworth Resources Loss Flat; Secures Mnazi Bay Financing

August 19, 2014

Sam Unsted

LONDON (Alliance News) - Wentworth Resources Ltd Tuesday posted a flat operating loss in the second quarter, saying it has secured a loan to back the development of its business in Tanzania and it remains on schedule on the Mnazi Bay project in the country.

The East Africa-focused oil and gas firm said its operating loss in the second quarter to June 30 was USD2.5 million, the same as the loss made a year earlier. Its net loss widened to USD1.2 million, from USD799,000 a year earlier, as finance income dropped.

It cut general and administrative expenses by 24% thanks to cost cutting, but production and operating costs rose and it paid out more in share-based compensation.

In the quarter, the company secured a USD26 million credit facility to back the development of its activities in Tanzania, focused on the Mnazi Bay concession. Construction of the gas pipeline and processing facilities at the site, being undertaken by a third-party contractor on behalf of the Tanzanian government, is on schedule for commissioning and completion in the first quarter of 2015.

The firm has also re-mobilised a seismic crew which will work on the conventional 2D seismic surveying over prospective areas in Mnazi Bay. This process is expected to be completed in the third quarter of 2014.

Also during the quarter, the firm started drilling operations at the Tembo-1 exploration well in the Rovuma Onshore Concession in northern Mozambique. The start of the drilling at the well was delayed by 45 days due to start-up and equipment challenges. The firm is fully funded for the Mozambique drilling project.

Wentworth shares were untraded on Tuesday, quoted at 43 pence.

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Source: Alliance News

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