Wentworth Resources reduces FY pre-tax loss and boosts revenue
Shares in Wentworth Resources are down almost 1% despite it posting a reduced full-year pre-tax loss as total revenue for the period more than doubled, with the company also noting a pleasing reserve report.
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It said an independent evaluation put the value of proved + probable (2P) reserves at the company's gas fields in Tanzania at $180.3m NPV (10%) after tax at 31 December 2016.
Net 2P reserves were 115.9 Bscf (19.3 MMbbl BOE), which were higher than 2015 after taking into consideration gas production during the year, said Wentworth.
"We are very pleased with the updated reserve report covering our gas reserves in Tanzania which more than underpins the quality of our producing asset," said managing director Geoff Bury in a statement.
"We expect production to average between 40 and 50 MMscf/d throughout 2017 before seeing a material increase in volumes starting in 2018 with the addition of newly constructed and commissioned power plants in Dar es Salaam," he added.
Bury further said that with a fully invested field and all infrastructure in place to more than double current production, Wentworth was well positioned to benefit from increasing demand from current, stable levels.
The company turned in a much lower full-year pre-tax profit of $1.9m, from a loss of $7.3m previously. Its revenue was $11.8m, from $4.6m.
At 14:41 GMT, shares in AIM-listed Wentworth were down 0.94% to 26.5p each.