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Up 11% at OSE today :-)
New name: Wentworth Plc
New tradename: WEN
New LSE page: http://www.lse.co.uk/SharePrice.asp?SharePrice=Wen&goButton=Go
New company website: http://www.wentplc.com/
New presentation: https://wentplc.com/wp-content/uploads/2018/11/2018-10-02-WRL-IRpack-draft-EJ-4.0.pptx
Bye bye WRL!
"It’s not often that AIM is home to a major supplier in a market seeing ‘ridiculous’ growth.
But with some confidence chief executive, Eskil Jersing can say that is where oil and gas junior Wentworth Resources Limited (LON:WEN) stands at present.
WATCH: Wentworth Resources' restructure allows 'easier execution of growth opportunities
Wentworth is now the number one supplier of gas for electricity in Tanzania from the Mnazi Bay field and demand is soaring.
New gas to power stations are ‘lining up to come onstream’, he says and that puts Wentworth in a fantastic position.
House broker Stifel agrees; “This is the number 1 marginal gas producer in a structurally growing energy market desperately short of gas.
“Even on our base case, the business can sustain production and generate average US$15-20mln pa of FCF [free cash flow] into the 2020s, against a current market cap of US$50mln.”
Even on the lower figure, a cash flow multiple of under four is low, anomalously so suggest Stifel.
“A 30% annual free cash flow yield across 2018-2020.”.......
https://www.proactiveinvestors.co.uk/companies/news/208313/wentworth-resources-in-prime-spot-as-demand-for-gas-in-tanzania-soars-208313.html
“The aspiration is to be a midcap player in the next 5 years”....
https://www.investopedia.com/terms/m/midcapstock.asp: A mid-cap is a company with a market capitalization between $2 billion and $10 billion...
Sounds great!
😊
It was decided in EGM last week. I guess a lot of the shareholders were hoping for enough votes to stop delisting. About 1/5 voted against.
Thanks Oz, Hopefully we have reached the bottom now with a price of around 2 NOK. At least it seems to have stabilised now. The worst should be over now, I suspect. I think we’ll start to see a recovery soon. Looking forward to when we have this delisting behind us!
* I believe it is because of paranoia among retail shareholders.
I don't think there are many Norwegian institutional investors in WRL. I beleieve it is more paranoia.
Based on discussions on Norwegian trade chats I believe it is retail investors. There is a lot of shareholders that are very opposed to the delisting - and for that reason chooses to sell.
Ozsurfer, My thinking so far has been that some institutional investors in Norway are forced to sell their shares as a result of the de-listing, not so much the PI’s. Do you know if that is correct? Frustrating times, I agree, but the outlook is better than ever, so I’m not too worried. The key question will soon be about who will supply the gas for the Kinyerezi I extention: Orca or Maurel/WRL. As Mnazi Bay is the cheapest supplier in Tanzania, ignoring even the 20% stake of TPDC, I think we are clearly the front runner!
The AIM listing have never been a success for WRL since most trades have been conducted through OSE (Oslo Børs) anyway. The dual listing have killed momentum in both market places.
The company has decided to delist from OSE and do a re-admission on AIM. By moving the OSE trades to UK volumes on AIM will increase significantly, and hopefully make the company more visible and popular amongst UK investors and retailers.
The delisting from OSE have made Norwegian shareholders frustrated, and there have been huge sell offs lately. The share has plumped more than 30 % since delisting was proposed and later decided. For retailers and investors on AIM/LSE this must be a unique opportunity to take advantage of the OSE paranoia.
Last year when the shares in the company were oversold, the share rose 40 % in 10 days trading (2.18 to 3.04 September 17).
The company has never been in a more healthy position, and the fundamentals are great. The share price is all time low.
The company will make great profit from gas sales in H2, and gas production is increasing each month. The market cap of £m 39 does not reflect revenues of more than £m 30 for the year.
If WRL wants a farm-in partner for their Mozambique block, ask Rosneft, ENI or Sasol.
Mozambique signs oil exploration agreements with Exxon, Rosneft
MAPUTO (Reuters) - The Mozambican government said on Monday it had signed oil exploration agreements with U.S. energy firm Exxon Mobil and Russia’s Rosneft.
Mozambique’s National Petroleum Institute, an energy regulator in the southern African country, said the government was preparing to sign similar agreements with South Africa’s Sasol and Italy’s Eni.
The agreements could lead to as much as $700 million of investment in Mozambique as the energy firms are expected to drill a minimum of 10 wells, eight in deep water and two onshore, the institute added.
The firms earlier won oil tenders as part of Mozambique’s fifth licensing round in 2014.
Heavily-indebted Mozambique is hoping its oil and natural gas resources will help it recover from a debt scandal that saw it cut off from multilateral and foreign donors.
More than $30 billion is expected to be invested in Mozambique’s gas sector to build capacity to produce 20 million tonnes per year of liquefied natural gas.
Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed
independent, East Africa-focused oil & gas company, was notified on the 5
October 2018 of the following transactions by a director of the Company:
On 4 October 2018 and 5 October 2018, Mr. Iain McLaren, Proposed Non-Executive
Director of the Company, acquired 100,000 common shares of no par value in the
Company ("Common Shares") at a price of 23.23p per Common Share. Following the
acquisition, Mr. McLaren has an interest in 100,000 Common Shares representing
0.05 percent of the Company's issued share capital
Bought some shares this morning for 2.24 NOK, which corresponds with 21p..... An amazing price; I think this is a real opportunity at the moment, especially for people who can trade both in the UK and in Norway!
No Norwegian shareholders are forced to sell their shares. Its totally their own Choice.
AIM is a "new world" for most Norwegians and it create some more work regarding trading and tax issues. But in the long run, I think the action taken by new CEO will benefit us all. I defineately dont agree on the conspiracy theories that all this is a strategy to squeeze out minority owners.
Totally agree that old management have been amazingly incapable of value creation. And now the new management has managed to dig themselves into such a hole of mistrust in such a short time. Nothing short of spectacular. Fundamentals may be better than ever, but there are serious questions about existing managements understanding of shareholder value. Really sad!
Crudetrader,
While I feel very sorry for the Norwegian investors who are currently forced to sell their shares, I think the news is overall actually very good. Cash flow is good, solid reserves (conservative estimates), a clear route to 130 MMscf/d, no well issues, plenty of promising exploration opportunities in Mnazi Bay and big cost saving opportunities. Giving up on Tembo alone will already save us about 2 mln per year....
With the very low share price at the moment (necessary to create a market?), I have to revise my opinion again to a strong buy. No doubt 2019 is going to be an excellent year for the company, and the current price is amazingly low. I will probably buy some more shares myself in the coming week!
Looks like the market liked the RNSs
I think WRL mgmt is doing an excellent work in putting pressure on the stock by twisting information:
1. New CPR today, they present NPV15 instead of NPV10 as they have used since the IPO and all other companies on AIM is using. It looks like the reserve value has decreased but the reality is that the NPV10 is only down $5m during a period the company received $14m of payments.
2. The company wont release monthly production and revenue RNS anymore. This might have been the only piece of news which helped to highlight that WRL still exist in the flood of RNS on AIM.
3. WRL mgmt isnt really helping the Norwegian shareholders to convert their shares to AIM. WRL could easily have facilitated this but they don’t.
It feels like WRL mgmt / BOD is doing what they can to push down the share price, maybe the directors wants to buy cheap shares for themselves or the main shareholder want to take it private. Anyone’s guess but it all looks odd as WRL has operationally and financially never been doing better.
Thanks Mikkel, I now remember indeed that I had read somewhere that the “additional ” TPDC payments will continue, as long as the trade receivables are still outstanding. However, has this been explicitly confirmed by WRL recently? It would of course imply that Maurel will need to wait on their outstanding TPDC receivables until all trade receivables for WRL have been cleared.... Hmmm... it would certainly be good news. Would like to see it. But given that TPDC is 4-5 months behind in payments, we won’t find out before May anyway I guess.
Mick, the TPDC trade receivables (which is receivables for delivered gas) will not fall as long as production is rising and we still carry TPDC receivables (which of course only comes due a long with production). Those payments of approx. 40% will frist stop when both position is accounted for, and thus we can expected TPDC receivables for another 18-19 month from July2018 at production around 90 mmscf/d. I too was very disappointed about the minor cash build.
CT, I am worried about the trade payables (not falling quickly enough) and I’m also worried about the TPDC receivables (payments will drop with approx. 40% when they end) But to make it clearer why I’m so extremely disappointed with the H1 results: Despite total received payments of 13 million in H1, WRL only managed to increase cash with 0.29 mln and reduce liabilities with 2.25 mln. In other words, we spend 10.5 mln of the 13 mln on overheads and “investments”.... A truly awful performance!! Sorry to say, but I can’t make it any better.