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Started: mick2020, 2 Nov 2018 10:13
Last post: alph, 2 Nov 2018 21:15
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!
Started: alph, 1 Nov 2018 14:41
Last post: alph, 1 Nov 2018 14:41
"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
Started: HighYield, 29 Oct 2018 13:43
Last post: mick2020, 29 Oct 2018 15:57
“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!
😊
Started: HighYield, 29 Oct 2018 12:01
Last post: HighYield, 29 Oct 2018 12:01
Started: OzSurfer, 12 Oct 2018 08:14
Last post: OzSurfer, 12 Oct 2018 11:37
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.
Started: CrudeTrader, 9 Oct 2018 09:33
Last post: CrudeTrader, 9 Oct 2018 09:33
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.
Started: alph, 8 Oct 2018 08:58
Last post: alph, 8 Oct 2018 08:58
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
Started: CrudeTrader, 3 Oct 2018 10:37
Last post: mick2020, 4 Oct 2018 14:19
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.
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.
Started: Kikadini, 4 Oct 2018 10:01
Last post: Kikadini, 4 Oct 2018 10:01
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!
Started: HighYield, 26 Sep 2018 11:37
Last post: HighYield, 26 Sep 2018 11:37
Started: alph, 3 Sep 2018 09:10
Last post: MikkelSchmidt, 21 Sep 2018 10:06
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.
mick,
I wouldnt include the trade payables in the debt figure. For what its worth Eskil said that they he expect that the TPDC receivables of $8.7m to be repaid by end of 2018. I have also talked to Maurel et Prom and they are on the same view regarding those receivables.
CT,
On 30 June, we had 4 mln cash and 24.2 mln liabilities. (Ok, you can take of 900k for the decommissioning provision, but that still leaves 23.3 mln liabilities) Sure we have even greater receivables outstanding , but so far TPDC is not showing any inclination to catch-up on the monthly invoices unfortunately (Tanesco is, but that is small stuff).
Again, while I expect these numbers to improve quickly in the coming months, I really can’t see Eskil buying into any new ventures until we have at least say 20 mln in cash. Now I wish it was different but I can’t see that happening before end 2019.
I think for the foreseeable future the focus of WRL will be purely on reducing costs and increasing flow from Mnazi Bay (also beyond 100 MMscf/d once the Madimba inlet pressure has been reduced), unless they find a partner for Tembo.
Started: MikkelSchmidt, 12 Sep 2018 14:17
Last post: mick2020, 12 Sep 2018 18:11
Thanks Jergen,
Hmmm..... indeed, the $3.49m is on the (asset and liabilities) balance sheet, NOT in the P&L statement. So the same for Capex even. Unfortunately, this is exactly what I expected. The company will show great profit numbers (from the P&Lstatement) but 3-4 mln of that will be spent immediately, just to keep the liabilties at the same level.... every six months...
Can’t say I like it....
I had better luck.
Q:
I am confused concerning the Production and operating expenses
I thought the 1.47 MUSD under Operating expense was Wentworth's share of M&P's expenses
Then, what does the following cover:
"Current liabilities include outstanding cash calls issued by the Operator of the Mnazi Bay Concession for H1 2018 operating costs of $3.49 million. Since June 30, 2018, the Company has settled $2.66 million."
A:
The $1.47m in the P&L reflects accrued operating costs for the period. The $3.49m on the balance sheet reflects amounts cash called by M&P in that period ($2.66m) plus $0.83m of indirect overhead re-charge which is a liability under the JOA.
Cash calls included opex and some capex. Capex is capitalised on the balance sheet not run through the P&L.
Oh, and no news of course about the cash call.
The answers from our CFO are “confusing”, to put it mildly....
If it was up to me, she would be an employee who I had to let go...
Any news from our dear CFO around cash calls? Certainly not from my side, she seems to think really hard about this on. I've walked through the numbers quite a bit times, and the only suggestion adding it all up, is indeed what HighYield concluded about TPDC share of oper. cost and capex, what's later becomes a receivables, plus the fact that June payment wasn't accounted for, and finally the hilarious and frightening fact that our CFO isn't best friends with numbers.
Started: mick2020, 12 Sep 2018 13:10
Last post: mick2020, 12 Sep 2018 14:24
Mikkel,
Perhaps there are differences between countries, but as far as I know, is certainly not the case that degiro “grant themself the right to lend out shares on your behalf” This page probably explains:
https://www.degiro.co.no/om-de Giro/sikker-og-pålitelig.html
But I would think that other brokers must offer the same in Norway. I don’t know anything about that “aktiesparekonto”, so that is probably indeed an issue.
They are allowed to hold AIM shares, just not on what they call "aktiesparekonto" i.e. a much less tax heavy account with certain requirements to regulation. I've looked at degiro serval times, but to my knowledge they grant them self the right to lend out shares on your behalf, is that correct? Otherwise I'm at the same opinion as you that i couldn't care less were it's traded. I just think this kinda market marker environment seems to encourage spreads 10 times what's fair, and make the trading environment much less transparent.
Mikkel,
You say that the Norwegian shareholders are “squeezed out” is that because Norwegians (and other Scandinavians) are legally not permitted to trade on AIM at all? I find that hard to believe to be honest. Have you tried www.degiro.co.no? I am with that broker (although not based in Norway), and I can trade on OSE, AIM and many exchanges around the world.
I agree with all your comments about the need to cut costs. They should have done way earlier, but better late than never.
Started: alph, 2 Sep 2018 23:19
Last post: alph, 2 Sep 2018 23:19
According to several newspapers in TZ, Dangote Mtwara officially started using natural gas today for electricity production.
https://twitter.com/TPDCTZ/status/1036272130441265153
Will add around 8 mmcsf/d in daily production from Mnazi Bay.
Average August production should be about 90 mmscf/d.
Started: alph, 22 Aug 2018 19:36
Last post: alph, 22 Aug 2018 19:36
Alph, This announcement caught me by surprise yesterday, but I have to say, I like it! We need to create liquidity in London and I think Iain McLaren could be extremely helpful for that, with his many investment trusts. I also very much support the “Continuance” as well as “The delisting”. I think that the alternative investment casino”, ehh... market, is ultimately much more fun than OSE... Don’t get me wrong (I hold shares in Norway as well), but demand in Norway is very limited as well and AIM is simply much more suitable for creating a good hype.... eh... selling an exciting investment opportunity! ;-) WRL has a good stake in fantastic asset in Tanzania, which will allow them to run the company and further invest, while recovering all expenses for many years to come. While not a cash cow (yet) it is certainly a great basis for further growth! Just wish it would go a bit quicker!
WRL has announced that, beside Katherine Roe, Iain McLlaren and Tim Bushell will join the board of directors. There is no doubt that all of them have a great CV and experience.
However, the board already counts 5 members. So far there is no information that anyone of them are supposed to leave.
Is 8 board members in a small cap company necessary? Those people definitely do not work for pocket money.
Started: mick2020, 16 Aug 2018 13:43
Last post: mick2020, 22 Aug 2018 17:54
HY,
Looking forward to read WRL’s explanation, although saying that, my expectations are rather low on this point....
But as a quick comment:
- isn’t it rather strange that the company keeps mentioning “net payment to Wenworth” in every monthly payment update, and this now turns out to be a gross figure? Also highly coincidental of course that the difference between gross and net is 3.1 mln, exactly the same as the last payment in June...
- the 4.344 mln due to M&P on 1 Jan must include something more than only the “cash call”, as the “cash call” balance itself was 3.55 mln, according to the 2017 annual report...
But I found a small new positive comment as well by the way:
“At June 30, 2018, the Mnazi Bay joint venture partners were owed six months of gas sales made to TANESCO, with $1.18 million owing to Wentworth of which $0.84 million representing five month of gas sales has been collected subsequently to June 30, 2018”
So total payments subsequent to 30 June were 10.1 mln. With 3.1 and 3.7 mln already announced, I now expect a very decent payment of 3.3 mln in the 1 Sept announcement.... The only trouble is: if it turn out to be correct, some comments in the H1 start to feel pretty dishonest...
Hi Mick and Mikkel,
I missed your interesting discussions on Monday as I was travelling. I have also asked Katherine for further clarification regarding opex and cash calls from the operator. In the mean time, I will try to explain my take on the issue. The difference between net and gross payments from MP were about 3.1 MUSD and were cash calls for opex. My view is that cash calls includes WRL's share of CAPEX as well, although it does not say so explicity in the report. Furthermore, when I look at page 11 note 5 (TPDC receivables) in the financial statement, I see that the receivables have increased by 0.538 MUSD as WRL has paid for some of TPDC's concession costs. When summing up these items, the implied opex cost for WRL is about 1.0 MUSD for the first half of 2018.
MUSD
4.344 (Balance due to MP at the start of the year)
0.683 (WRL's share of Capex during the first half of the year)
0.538 (TPDC's share of concession cost paid by WRL)
1.022 (Implied opex based on these numbers)
-3.1 (cash calls during first half of 2018)
3.487 (balance at 30 of June 2018)
Let's hope WRL will return shortly with the full explanation, so we don't need to speculate anymore
I'll do, and i very much agrees Mick
WRL’s own P&O costs were 3.48 mln in 2017, so that could be the same number as in the CPR....Please keep me posted Mikkel, I’m very curious to hear how she explains this, and obviously, I hope that I am wrong....
If I’m not, and it is an additional cost currently only really visible in the liabilities, then the company should end all confusion and include “share of Mnazi Bay operator’s operating costs ” in the P&L statement...
Thanks Mick for the reply, I've passed along the question, and specifically asked to clear it out in a more layman term. How ever, the total OPEX for 2017 is clearly stated in the CPR issued this year, and thus theres no doubt that Mnazi total OPEX 2017 was a little under 12 m$, and our share clearly only represent around 3.7 m$/year. These cash call numbers may or may not (I certainly hope so) include either a part of our G&A who may be related to the joint venture, or it's some kind of TPDC cost and later receivables.
It's still stands as a big question mark, but it'll keep digging. It will certainly surprise me if we incurs that kind of oper. cost.
Started: alph, 11 Aug 2018 13:41
Last post: alph, 11 Aug 2018 13:41
Malcolm today. WRL from about 16:20
- Eskil is a 'very very smart cookie' and a fantastic hire for Wentworth
- He's not going to go there and not do anything
- Fantastic play (Mnazi Bay) Shareholders should be very happy in terms of what is going to happen here. Lots of upside potential.
- Tembo, huge potential, Mozambique is short of domestic gas, assess commerciality, little competition - and also zero exit cost.
- Agrees on the third leg. Wouldn't be surprised at some stage to see them doing a deal for a bit of production in a good environment.
- Katherine knows the business very well and is highly experienced.
- They've got cash, reducing debt, looks interesting.
https://audioboom.com/posts/6959402-ascent-resources-ast-and-malcy-on-solo-wrl-aex-iog-amer-hur-genl
Started: mick2020, 1 Aug 2018 08:41
Last post: mick2020, 1 Aug 2018 08:41
Great start of the second half of the year: Production increasing, payments increasing, what more do you want... well... OK, it should have happened in 2016 already... ;-) Anyway, all looking good right now Those outstanding liabilities will melt faster than snow in the sun this year: 17.3 min current liabilities (1 Jan) will be gone by the end of the year, and cash is already building up! ————- The Company is pleased to inform shareholders that payments received during July 2018 for gas sales generated from the Mnazi Bay Concession in Tanzania totalled $3.7 million net to Wentworth. Payments were received from both Tanzania Petroleum Development Corporation ("TPDC") and Tanzania Electric Supply Company Limited ("Tanesco") for one month's gas sales to TPDC and one month's gas sales to TANESCO. The Company is also pleased to report that gross production volumes during July 2018 from the Mnazi Bay gas field averaged 90 MMscf/d.
Started: alph, 16 Jul 2018 10:42
Last post: alph, 16 Jul 2018 10:42
Not that anybody cares, but it all looks extremely encoraging! Can’t wait to see the H1 results. I expect a net profit of ca. 4.5 - 5 mln $ for the first 6 months; a very good “start” for such a small company (P/E ratio < 7!). However, it will get truly exciting once we hit 100 MMscf/d.... and conpletely unbelievable at 130 MMscf/d!! This time next year?
http://hugin.info/136496/R/2205292/856740.pdf
LOWER COST PRODUCTION
• 81 mmscfd gross (Mnazi Bay) ca.4,300
boepd in Q2 2018
• Low cost. Long life reserves (2031)
• 45% of Tanzania’s Domestic gas needs
• Demand growth increased by 166% since
June 2017
REGULAR REVENUE PAYMENTS
• $16.1 MM paid year to date*
• Deleveraging balance sheet
UPSIDE POTENTIAL
• Unlocking Mnazi Bay reserves
• Tembo Mozambique gas discovery
SIMPLER & CHEAPER STRUCTURE
• Re-Domicile and transition progressing
through Q3 2018
RPS Canada updated CPRs for Mnazi bay and
Tembo (Reserves & Prospective resources) expected Q3 2018
Dangote Cement CNG – 8 mmscfd starting Q4
2018
Kinyerezi II (240MW)
− Six turbines commissioned between
December 2017 and September 2018
− Max Demand from facility 35-38 mmscfd
Started: alph, 8 Jul 2018 23:01
Last post: alph, 8 Jul 2018 23:01
Notes from a 30-minute call on June 28th with Eskil Jersing, Wentworth Resources Limited (WRL’s) CEO.
In conclusion: The new CEO has a well thought-out development plan in mind for WRL. A follow-up sit-down meeting with the CEO and the Norwegian retail investors is being planned (…and we should ask for this to take place sooner rather than later). Eskil is open to a continuing conversation with and will listen to shareholder groups. I believe (moreover) that he will take requisite actions to create value for the company and its shareholders. I suggested that the sooner we see a bump in the share price the more comfortable and supportive shareholders will be. WRL’s share price dropped some 10% since the AGM; not the bump we had expected. Lastly, the Company intends to put an IR (Investor Relations) Pack (in effect a corporate presentation) out in the near term to update the shareholders on ongoing efforts in this new chapter of Wentworth.
Here are some highlights (my takeaway and interpretations from the conversation):
1: Unlock Values: Wentworth is a solid company, but there are many complexities. The market needs an update of value. The Mnazi Bay Concession, WRL Tanzania (alone) is worth (at least) some $150 million and (just for Tanzania) we see how undervalued the company is. Efforts will be made to reduce the gap between the company’s (book) value and (stock) market value, i.e. a valuation reset. There is a recognition that Wentworth’s communication with the market could have been better.
2: Significant resources: Wentworth has good relationship with all stakeholders in Tanzania. To develop this 'resource platform' further, WRL will need fresh capital, which reinforces the need to achieve a higher (a re-set) value of WRL; nobody benefits from a low (market) valuation of the company; a strong balance sheet reflected in (stock) market appreciation is essential.
3: Mozambique: The one-year extension that has been granted, but there are concerns about the security risk. WRL’s Mozambique assets are good, but the company will not proceed with drilling without a risk-sharing (farm-in) partner and is 'looking at solutions' for this.
4: A Third Leg: Looking (opportunistically) for a third leg (in addition to Mozambique and Tanzania) that will help grow the company and offset the (current) risk exposure.
5: Corporate: The Company realizes the need to sit down with the (Norwegian) retail investors (will visit Oslo soon). It was my understanding that there had been some contact with this group with concerns been voiced and noted by the CEO. The Oslo de-listing is part of an (ongoing) effort to cut costs and create better liquidity in the stock (I’m not sure how focusing on London AIM will achieve this). There is talk about “simplifying the corporate structure and creating a cheaper (less expensive) operating platform”. There will be a planned and gradual process towards putting in place new board of directors structure over the next
Started: mick2020, 2 Jul 2018 11:15
Last post: mick2020, 2 Jul 2018 11:15
Another excellent RNS! And, again, zero response on AIM.... hmmm.....
Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company, today provides an update to shareholders.
The Company is pleased to inform shareholders that payments received during June 2018 for gas sales generated from the Mnazi Bay Concession in Tanzania totalled $3.1 million net to Wentworth. Payments were received from both Tanzania Petroleum Development Corporation ("TPDC") and Tanzania Electric Supply Company Limited ("Tanesco") for one month's gas sales to TPDC and one month's gas sales to TANESCO.
The Company is also pleased to report that gross production volumes during June 2018 from the Mnazi Bay gas field averaged 87 MMscf/d.
Last post: mick2020, 30 Jun 2018 13:38
HY,
I actually agree with all your points. While I do support cost cutting measures it seems premature to de-list from OSE at this stage. However, saying that, it will take months to complete the delisting, so there could be enough time to create a new market in the UK. Also, the company may decide to maintain its shareholder register in the VPS for Norwegian shareholders. What percentage of Norwegian shareholders will chose to transfer their shares out of the VPS into the UK CREST system do you think?
Did you, or anybody else from the Norwegian shareholders contact Katherine or Eskil about this? What was the response?
HY:
Has WRL ever been able to buy through aksjesparekonto? Thats new for me, at least.
Mick2020, from my point of view being an investor on OSE, I find the announcement to delist from OSE very strange. Of 186 million shares outstanding, about 118 million are registred on VPS (tradable on OSE) and about 90% of the number of trades are being made on OSE. 90% is just my estimate from looking at the number of trades lately, and could be wrong. <br />Another reason for keeping WRL on OSE is that OSE is regarded as a "regulated market" which is not the case for AIM. Many popular stock savings accounts like life and pension savings accounts and something called aksjesparkonto (stock savings account) do not allow investments in shares in unregulated markets, such as AIM. <br />This would probably lead to forced sale of about 5 million shares in WRL if the delisting on OSE were to take place. <br /><br />For those that have an account that allows for trading on unregulated markets such as AIM, it is more complicated and expensive as it requires giving orders over the phone and exchange og currency. My guess is that most Norwegian investors would leave WRL if it were to be delisted from OSE. However, I don't think Oslo Stock exchange will allow a delisting on OSE as it will leaad to a substantial difficulty in trading the share on AIM.<br />
I have mixed feeling about this. On the one hand I fully support the focus on cutting costs and simplifying the structure of the organization, on the other hand I think this could have been done in stages, to avoid reducing liquidity even further. We will certainly lose a significant number of investors in Norway, which is a shame. At the same time though, while liquidity is practically zero at AIM, it is also low in Norway, so the company needs to change something radically here. You almost wonder if they have some "other information" that we don't know yet, why they announced the delisting at this moment already.
WRL remains a medium to long term investment though, and as they have announced the plans now to delist from OSE, the damage is basically done. A drop of 8-10% from a price that is already way too low is not something that keeps me awake, especially which such low volumes.
Time to look forward now. Hopefully Monday will bring some good news already, and I expect the H1 report to build on that further. I'm also very much looking forward to Eskil's plans to grow the company. Solid numbers, growing production, some marketing from a new UK CEO and a new batch of Norwegian PI's trading on AIM, and I do expect that liquidity in London will grow soon.
I think WRL should at least show their shareholders that they are able to increase the amount of trades at AIM before they delist at OSE. Because now, I guess OSE has 90% of all trades in WRL.
Nice to see that WRL keeps cutting cost and focus on one exchange instead of two.
I think WRL is in a very good spot for the second half of the year.
To further this objective, the Company is also seeking to de-list from the Oslo Børs, which is consistent with the Company's plan to move towards a UK based corporate governance regime and is in line with the appointment of a UK based management team. The Company is confident that the AIM market provides sufficient liquidity and ease of trading for all shareholders.
The Directors are mindful that the Company's members include a number of non-institutional shareholders located in Norway and it invites shareholders, in the first instance, to engage with the Company's management should they have any questions on the aforementioned. Â Email contact details are set out at the base of this announcement.
Bob McBean, Executive Chairman, said:
"The Company is focused on moving to a simplified corporate structure and corporate governance regime that will increase liquidity, reduce overheads and allow the new UK based management team to drive the business forward. Furthermore, the benefits of being in a similar time zone to our assets and key partner Maurel et Prom, in addition to London providing a critical centre for M&A and capital solutions with respect to the African Oil and Gas industry, are well known. We believe a redomicile to Jersey and, a delisting from the Oslo Børs will help meet these objectives. We would welcome engagement with any shareholders to discuss any issues arising from the proposed changes and, of course, we will seek appropriate shareholder approval for the proposed changes before they are implemented."
Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company, provides the following corporate update.
Chief Executive Officer
Further to the Company's announcement dated 15 January 2018, Mr Eskil Jersing has today joined Wentworth as Chief Executive Officer. He will be appointed to the Board with effect from 27 June 2018 at the Company's Annual and Special Meeting.
Redomicile of the Company
As previously announced, in line with the head office relocation of the Company from Calgary to London, the re-domicile of the Company to the British Isles is progressing on schedule. Having considered various options, the Company is working towards a "Continuance" of the Company into Jersey, Channel Islands (the "Continuance"). Â
The Continuance is a legal process whereby, following shareholder approval by way of a special resolution, the Board of the Company will apply to:
The Registrar of Corporations in Alberta to grant a certificate of discontinuance; and
The Jersey Financial Services Commission for their approval of the Continuance.
Upon such approval:
The Company will cease to be a company registered in Alberta, Canada and will be registered in Jersey, Channel Islands;
Shareholders will continue to hold one share of the Company for each Common Share currently held. The principal attributes of the share capital of the Company will be identical, before and after the Continuance, other than differences in shareholders' rights under the new Articles and under Jersey law as compared to the current articles and Albertan law;
The Company will adopt a new Memorandum of Association and Articles of Association (the "Articles");
The Company's shares are expected to continue to be traded on AIM and the Oslo Børs; (with an Oslo Børs delisting application being submitted shortly thereafter); and
All property and rights to which the Company was entitled immediately before the Continuance will remain the property and rights of the Company post Continuance and the Company will remain subject to all criminal and civil liabilities, all contracts, debts and other obligations and all legal proceedings, to which it was subject immediately before the Continuance.
Full details of the Continuance process and its implications will be provided, in due course, in a Continuance Circular.
Delisting from Oslo Børs
The intent behind the redomicile is to reduce costs and simplify the Company's corporate structure. The Board believes the redomicile process will provide a positive long-term benefit for all of its shareholders and improve the overall liquidity and risk profile of the stock.
To further this objective, the Company is also seeking to de-list from the Oslo Børs, which is consistent with the Company's plan to move towards a UK based corporate governance regime and is in line with the appointment of a UK based management team. The Company is confident that the AIM mar
Started: CrudeTrader, 19 Jun 2018 18:34
Last post: mick2020, 20 Jun 2018 13:34
Fully agree crudetrader! It will be interesting to watch when trading springs back to life. Production will grow a lot further in the comng months (130 MMscf/d this time next year?), and with money coming in consistently, it is only a matter of time I would say!
I think Wentworth is one of the most overlooked E&Ps on AIM/LSE. The development of the asset was slow, and the ramp up was slow and payments were slow. All these factors seem to have resulted in that investor lost interest in the stock. But I think now that the stock is very interesting due to a few reasons: First, production so far in 2018 is outperforming guidance. Secondly, payments have been more consistent in 2018. Which has resulted in a rapidly improved balance sheet. The company should be net debt free during 2018. Thirdly, there seems to be more demand for gas in the next 12 month which could support an increase in production guidance. The stock is now where cheap on cash flow to enterprise value multiples and other metrics. Furthermore, the company has moved the management from Calgary to London to reduce cost. I think this process has unintentionally resulted in that the company has not been out meeting investor much, the past 6 months. As the CEO and CFO left the company when the office move was decided. The stock isnt moving much but investors will eventually recognize that it's among the cheapest E&P on AIM/LSE.