Wentworth Resources : Limited : 2011 Financial Statements and MD&A

Wentworth Resources Limited

("Wentworth" or "the Company")

2011 Financial Statements and MD&A

Wentworth Resources Limited ("Wentworth"), the AIM (AIM: WRL) and Oslo Stock Exchange (OSE: WRL) listed independent, East Africa-focused oil & gas company, today releases its audited Consolidated Financial Statements and Management's Discussion and Analysis for the year ended December 31, 2011.  

HIGHLIGHTS:

Mnazi Bay, Tanzania

• Increased interest in the Mnazi Bay Concession and, subject to government approval of M&P's exercise of their pre-emptive rights: 

  • Wentworth will  have a 31.94% participation interest in petroleum operations (39.925% participation interest in exploration operations) in the Mnazi Bay concession 

  • M&P will make a cash payment to Wentworth of approximately US$19 million and will pay 60.075% of the contingent consideration due as part of the acquisition of Cove Energy's participation interest 

  • Wentworth will continue to be carried through a majority of the exploration programme as it will pay approximately 12 percent of the drilling costs of the  Ziwani-1 well and the second exploration or appraisal well 

• Drilling of the Ziwani-1 exploration well ongoing 

• Completed an agreement to dispose of the Company's 18MW gas-fired power plant and associated assets to Tanzania Electric Supply Company ("TANESCO") for cash consideration of $13.5 million, $12.825 million of which has been received to date with the remainder to be paid after handover on March 31, 2012 

Onshore Rovuma, Mozambique

• Onshore Rovuma Basin partners committed to Phase 2 of the exploration programme 

Corporate

• Successful listing on the AIM market of the London Stock Exchange on 25 October 2011  

Financial information

• Cash balance of $9.1 million and working capital of $4.2 million at 31 December 2011  

OUTLOOK:

• Work overs on three existing wells will commence upon completion of drilling of the Ziwani-1 exploration well; work overs designed to ensure gas deliverability to meet anticipated demand 

• The Company will work with the Mnazi Bay Concession partners and the government to: 

  • expedite the necessary documents to finalize the acquisition of additional interest in the Mnazi Bay Concession, and 

  • finalize a gas supply agreement with the government to supply the proposed Mtwara to Dar es Salaam pipeline 

• The seismic programme will commence Q2 2012 in the Onshore Rovuma Basin, Mozambique