Member Info for HighYield

Being a DNO shareholder, I would like DNO being able to acquire Faroe as cheap as possiible. However, I do realize that their offer is too low to get accepted. I think DNO's aim is to get at least 50% of the company, and make some substantial changes of the BOD and at a later stage possibly make a new bid for the remaining shares outstanding.

How high do you all think DNO nees to go in order to get at least 50% of the votes in Faroe?

Orca is predicting an even higher growth in demand and that there will be a supply deficit already in 2019. See slide 16, in the latest presentation from Orca.

http://www.orcaexploration.com/pdfs/OEG_Presentation_November_2018_Q3.pdf

"Gas demand soaring in Tanzania
This is going to rise from ca.160mcf/d (million cubic feet per day) currently, to up 300mcf daily in the next few years, Wentworth believes."

https://www.proactiveinvestors.co.uk/companies/news/208313/wentworth-resources-in-prime-spot-as-demand-for-gas-in-tanzania-soars-208313.html

Thank you all for spending 12 minutes of your time on WRL.

Drewky, your main point is really relevant. Where will the additional gas supply come from. New gas fired power plants are being build, but no additional gas supply is available, at least not in the short-term.
https://www.dailynews.co.tz/news/2018-10-135bc19878ea76a.aspx

Orca, is the only operator that can supply additional gas. But for some reason, no GSA has been signed yet. I have no idea why the Tanzanian authorities are dragging their feet to make extention of both production(WRL) and exploration(AEX) licenses. Their barganing position will be much worse, when gas demand can't be supplied by current production capacity, I think.

Aminex is actually being menthioned in Eskil Jersing's presentation at Proactive investors. I am not going to tell you when. So to find out you will have to look at it from the start.

https://www.proactiveinvestors.co.uk/companies/stocktube/11024/wentworth-resources-presents-at-oil-capital-october-2018-11024.html

https://www.proactiveinvestors.co.uk/companies/stocktube/11024/wentworth-resources-presents-at-oil-capital-october-2018-11024.html

I noticed the question on Sunday from Willowpillow, why the market cap of WRL is so low. Cperkin replyed, debt, unprofitable and moore Capex needed to expand production.

The only part were I agree with Cperkin, is that Capex will be needed to drill more wells. The current five wells
at Mnazi Bay currently produce about 85 mmscf/d. WRL holds 32% av the production license. WRL has said that the wells could produce more, but that could lead to long term negative effects on production. Accordingly, production is estimated at 80-90 mmscf/d, going forward. M&P (the operator) and WRL have stated that they will drill more wells, when they get a license extension beond 2031. You all know it could take some time to get a license extension.

WRL reported a net loss of 6.5 MUSD for the first 6 month of 2018, but that number included some one-off items, like a deferred tax expense of 8,7 MUSD (no cash flow effect) and eo admin expensesof 2.9 MUSD following the change of jurisdiction among other things. So, when adjusting for these one-off items, WRL is profitable.

Regarding debt, total interest bearing debt was 15.6 MUSD as of 30 June. Cash amounted to 13.5 MUSD, as of 22 October (latest presentation). I don't see debt as a problem for a company, when it has stable cash flow to serve the debt.

WRL did present on proactive investors today. They talked about future growth ambitions, but also about the strong demand for gas in Tanzania going forward.

https://www.proactiveinvestors.co.uk/companies/stocktube/11018/wentworth-resources-restructure-allows-easier-execution-of-growth-opportunities-

https://www.proactiveinvestors.co.uk/companies/stocktube/11018/wentworth-resources-restructure-allows-easier-execution-of-growth-opportunities-

For those of you that are interested in the Tanzanian gas story on a more general basis, WRL are presenting on the Oil Capital Conference today.The presentation can be found here, https://wentworthresources.com/presentations.php

My take from the presentation, is that cash increased to 13.5 MUSD as of 22 October, up from 4.0 MUSD as of 30 June. TPDC seems to paying on a regular basis. Mcap 53 MUSD.

The release is a bit old, so sorry if I am repeating information that has been posted here before.
http://www.bountyoil.com/wp-content/uploads/2018/10/Bounty-Oil-ASX-Release-Kiliwani-North-Project-5-October-2018.pdf

Bounty has fully reserved its rights against the operator under the relevant Joint Operating
Agreement in particular for payment of its entitlement to:-
• A receivable of USD 475,866 (AUD 665,000) for gas delivered and sold to Tanzania
Petroleum Development Corporation on its behalf by the operator.
• A substantial but yet to be quantified amount for condensate stripped from its gas
where the operator has failed to secure, sell and/or pursue payment for that
condensate in addition to payment for gas sold.

For those of you that are interested in gas producers in Tanazania, an updated corporate presentation from WRL might be of interest. Gas demand is growing, but who is going to supply the gas? Mnazi Bay is producing close to current capacity of about 90 mmscf/d.

https://www.wentworthresources.com/pdf/2018-10-02%20Wentworth%20Corporate%20Presentation%20v1.7.pdf

http://www.thecitizen.co.tz/News/Power-project-nears-completion/1840340-4778108-2u5iugz/index.html

Seems as though, mick2020, is struggeling to find the right words.

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

The cash call could of course include WRL part of CAPEX during the period, about 0.9 MUSD during this period, if I remember correctly. Capex is not included as a cost in the PL , just depreciation.

mick2020,

I agree it sounds a bit strange, but if it had been a cost, the same number should have been found in the profit and loss statement as well. Please post any reply from the company about this issue.

Mick2020,

Regarding your point 4, I am not sure what you are referring to. I find a liability of 3.5 MUSD towards MP,down from 4.4 MUSD at year-end, but that is not a cost for the 6 month period.

"4) Why do we keep incurring cost for “cash calls by the operator for operator costs”? 3.5 min for the first 6 months in 2018, a hefty sum. If we have to keep paying 550-600 k$ per month to Maurel for this indefinitely, then WRL will struggle to ever make any serious money I suspect, or at least not below 100 MMscf/d."

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 />

It is positive to see that license extensions can take place in Africa, also before formal expiry dates. "Further to the update at the time of the 2017 Annual Financial Statements in March regarding the Companys formal request of a one-year extension of the Appraisal License, the Company has received confirmation from Instituto Nacional de Petroleo (INP) that the extension has been granted. The extension will take effect from 16 June 2018 and enables Wentworth, along with its partner Empresa Nacional de Hidrocarbonetos (ENH), to continue to progress pre-drilling activities in the Tembo block."

Crusty, as an outsider I am not entitled to any answers from the company. However, one thing that puzzels me. Why did not AEX raise funds after the positive CPR report in the beginning of february? A capital raise of about 15 MUSD, whould only created a dilution of about 10% at that time (assuming a placing at 3.0 p). I seriously doubt that the company will manage a farm out without higher dilution ( need to farm out more than 7.5% to raise 15 MUSD). I believe that not raising capital at that time, is one of the worst mistakes that management and BOD have done.