Wentworth Resources has reported a $4.5 million loss for the six months ended in June 30th 2015 as second quarter exploration dropped and development capital expenditures increased significantly to $2.31 million and $7.04 million, respectively, compared to $3.69 million and $0.30 million, respectively, in 2014.
The loss is also due to an increase in financing costs as the company raised funds for development in Tanzania including $4.36 million of a credit facility to fund operator cash calls for Mnazi Bay development expenditures
According to financial statements released in Wednesday the working capital is also down to $5.77 million compared to $15.84 million at December 31, 2014
On July 1, 2015 the company successfully completed a private placement and issued 15,412,269 new common shares for cash consideration of $0.50 per share for total gross proceeds of $7.64 million.
According to managing director Geoff Bury the new funds further secure the Company’s balance sheet in advance of generating cash flow once gas sales start in the coming weeks.
“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. 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. We wish to thank shareholders for their continued support during this exciting period in the Company’s history,” he said
Wentworth Resources has 39.925 percent participating interest in exploration and 31.94 percent in production while the operator Marel et Prom has 48.06 percent and 60.075 percent participating interest in exploration and production respectively. The Tanzania Petroleum Development Corporation will also acquire a 20% production interest during production.