Wentworth Resources Limited : Q3 2015 Financial Statements and MD&A

PRESS RELEASE
19 November 2015

Wentworth Resources Limited

("Wentworth" or the "Company")

Q3 2015 Financial Statements and MD&A

Wentworth Resources Limited, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company, today announces its results for the third quarter and nine months ended 30 September 2015.

The following should be read in conjunction with the Q3 2015 Management Discussion and Analysis and Financial Statements which are available on the Company's updated website at http://www.wentworthresources.com.

Q3 2015 HIGHLIGHTS

Corporate

• Agreement reached on payment security terms between the gas purchaser in Tanzania, Tanzania Petroleum Development Corporation ("TPDC"), and the Mnazi Bay joint venture partners.
• Commenced gas sales to the new Mtwara to Dar es Salaam gas pipeline in Tanzania.
• On 1 July 2015 successfully completed a private placement (the "Private Placement") and issued 15,412,269 new common shares for cash consideration of $0.50 (GBP0.315 or NOK3.88) per share for total gross proceeds of $7.64 million (GBP4.9 million or NOK59.7 million).

Financial

• Commenced gas sales to the new Mtwara to Dar es Salaam gas pipeline in Tanzania generating revenue of $0.97 million for the quarter, up 260% from Q3 2014.   
• Net loss for the third quarter of $1.25 million, compared to a net loss of $1.32 million in Q3 2014.
• Utilized the remaining $5.16 million undrawn balance on a $26.0 million credit facility to fund Mnazi Bay development expenditures.
• Third quarter exploration capital expenditure of $0.38 million compared to $7.98 million in Q3 2014.
• Third quarter development capital expenditure of $1.16 million, compared to $0.33 million in Q3 2014.
• Cash and cash equivalents on hand of $2.28 million at September 30, 2015 compared with $5.49 million on hand at December 31, 2014.
• Working capital was $17.72 million compared to $15.84 million at December 31, 2014.
• Following the commencement of gas sales under the long-term gas sales agreement in Tanzania, the Company expects to generate sufficient cash flow to meet ongoing obligations extending beyond 12 months and therefore the going concern note has been removed from the unaudited condensed consolidated interim financial statements.

Operational

Mnazi Bay Block, Tanzania

• On 20 August 2015 first gas delivery to the new government-owned Mtwara to Dar es Salaam Natural Gas pipeline commenced. Gas delivered during the third quarter was primarily used by TPDC for commissioning of pipeline infrastructure and to fill and pressurize the 36" pipeline. 
• Current production into the new pipeline is approximately 45 MMscf/d with an expected gradual increase up to approximately 80 MMscf/d by the end of 2015 as gas turbines at existing and new power generation facilities are commissioned and become operational.
• During the third quarter development capital activity involved the ongoing construction of field infrastructure connecting the Mnazi Bay gas field infrastructure to the government-owned gas pipeline.

Rovuma Onshore Block, Mozambique

• On 21 July 2015, the Company provided formal notification to the Mozambique government of its intention to proceed with an appraisal of the gas discovery in the Tembo-1 well.   With the exception of state owned Empresa Nacional de Hidrocarbonetos de Mocambique ("ENH"), all other parties to the Rovuma Onshore Block Concession relinquished their participation interest effective 31 August 2015.
• Discussion ongoing with ENH regarding the assignment of the relinquishing parties' participation interest to the remaining parties in the Concession, selection and appointment of an operator of the Concession, determining the appraisal acreage for Tembo-1 discovery and agreeing to a multi-year appraisal plan.

Geoff Bury, Managing Director, commented:
"The third quarter of 2015 was a pivotal period in the Company's history.  Completion of a $7.6 million equity financing provided the necessary funds to see the Company through to first cash flow from gas sales to the new government-owned transnational pipeline in Tanzania.  First gas sales to TPDC commenced on 20 August 2015 and first payment was received in early November 2015 for gas sold in October 2015.  Four of the five wells are now tied in to the new pipeline with production rates and well performance being comfortably within expectations.  We expect to exit 2015 in a strong financial position and have positioned the Company to take advantage of strategic growth opportunities should they arise in 2016."

A conference call for investors, analysts and other interested parties will be held today at 06:00 MST (Calgary) / 13:00 GMT (London) / 14:00 CET (Oslo). See the Company's announcement from 13 November 2015 for call-in details.

-Ends-

***

Financial Statements

The following primary statements have been extracted from the Q3 2015 unaudited consolidated financial statements which are located on the Company's website at www.wentworthresources.com.

WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Financial Position
United States $000s, unless otherwise stated

WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss
United States $000s, unless otherwise stated

WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Changes in Equity
United States $000s, unless otherwise stated

WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim Statement of Cash Flows
United States $000s, unless otherwise stated

About Wentworth Resources

Wentworth Resources is a publicly traded (OSE:WRL, AIM:WRL), independent oil & gas company with: natural gas production; midstream assets; and exploration and appraisal opportunities; all in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique.

Cautionary note regarding forward-looking statements

This press release may contain certain forward-looking information.  The words "expect", "anticipate", believe", "estimate", "may", "will", "should", "intend", "forecast", "plan", and similar expressions are used to identify forward looking information.

The forward-looking statements contained in this press release are based on management's beliefs, estimates and opinions on the date the statements are made in light of management's experience, current conditions and expected future development in the areas in which Wentworth is currently active and other factors management believes are appropriate in the circumstances. Wentworth undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless required by applicable law.

Readers are cautioned not to place undue reliance on forward-looking information. By their nature, forward-looking statements are subject to numerous assumptions, risks and uncertainties that contribute to the possibility that the predicted outcome will not occur, including some of which are beyond Wentworth's control.  These assumptions and risks include, but are not limited to: the risks associated with the oil and gas industry in general such as operational risks in exploration, development and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the imprecision of resource and reserve estimates, assumptions regarding the timing and costs relating to production and development as well as the availability and price of labour and equipment, volatility of and assumptions regarding commodity prices and exchange rates, marketing and transportation risks, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in applicable law.  Additionally, there are economic, political, social and other risks inherent in carrying on business in Tanzania and Mozambique. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. See Wentworth's Management's Discussion and Analysis for the year ended December 31, 2014, available on Wentworth's website, for further description of the risks and uncertainties associated with Wentworth's business.

Notice

Neither the Oslo Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed this press release and neither accepts responsibility for the adequacy or accuracy of this press release.