PRESS RELEASE
19 May 2015

Wentworth Resources Limited

("Wentworth" or the "Company")

Q1 2015 Financial Statements and MD&A

Wentworth Resources Limited, the Oslo Stock Exchange (OSE: WRL) and London Stock Exchange (AIM: WRL) listed independent, East Africa-focused oil & gas company, today announces its results for the first quarter and three months ended 31 March 2015.

The following should be read in conjunction with the Q1 2015 Management Discussion and Analysis and Financial Statements which are available on the Company's updated website at http://www.wentworthresources.com:
http://www.wentworthresources.com.

Q1 2015 HIGHLIGHTS

Corporate

  • On March 9, 2015, an independent reserves evaluation attributed Wentworth's share of Proved + Probable (2P) reserves valued at US$152.9 million NPV (10%) after tax at December 31, 2014 to the Company's gas fields in Tanzania(1).
  • Continued working with the Tanzanian Government to finalise payment guarantee documentation in support of the Gas Sales Agreement for gas deliveries to the government owned pipeline.
  • The new transnational gas pipeline and processing facilities are nearly complete with delivery of first gas anticipated to occur early in Q3 2015.

Financial

  • Net loss for the quarter of $2.72 million, compared to a $0.85 million in 2014.
  • Revenue for the quarter of $0.27 million, up 15% from Q1 2014.
  • First quarter exploration and development capital expenditures of $6.98 million and $2.57 million respectively compared to $4.78 million and $0.48 million respectively in 2014.
  • Cash and cash equivalents on hand of $4.43 million at March 31, 2015 compared with $5.49 million on hand at December 31, 2014.
  • Working capital was $10.98 million compared to $15.84 million at December 31, 2014.

Operational

Mnazi Bay Block, Tanzania

  • The MB-4 development well spud during March. Drilling operations are expected to be completed during June and the well ready to produce gas in July.
  • Continued construction of field infrastructure to connect the Mnazi Bay and Msimbati gas fields to the new transnational government owned pipeline project. 
  • In late March, the Government communicated first gas delivery is now expected in July, a delay of approximately three months.

Rovuma Onshore Block, Mozambique

  • The Kifaru-1 exploration well reached TD 3,100 meters in Eocene age rocks. The well encountered all targeted zones in the Miocene, Oligocene and Eocene formations but failed to find an economic reservoir and as a result the well was plugged and abandoned in February.
  • Continued evaluation of the Tebmo-1 well data and working with the Rovuma Onshore Concession partners to determine a possible appraisal plan and change of operatorship in advance of the third exploration period expiring on August 28, 2015.

Geoff Bury, Managing Director, commented:
"We have made further progress this quarter towards delivery of first gas into the new pipeline with our continued tie-in work of the existing wells, the commencement of the MB-4 development well to further de-risk the existing fields and continued negotiations towards finalising the payment guarantee documentation.

The forthcoming cash flow from gas sales to the pipeline will be significant and will be used to fund the Company's growth initiatives within Tanzania, Mozambique and East Africa.  With an instant market for any newly discovered gas, the Company plans to partly reinvest the cash flow into exploration in the Mnazi Bay Concession in Tanzania.  This a unique and enviable opportunity the Company intends to capitalize upon.  In Mozambique, in coordination with the Rovuma Onshore Block joint venture partners, we are nearing a decision on the path forward for potentially appraising the discovery encountered within the Tembo-1 well announced in December 2014.  Exploration opportunities within our existing assets and additional accretive growth prospects emerging in East Africa provide the Company with strategic opportunities to become a leading oil and gas company in the region and create significant shareholder value."

-Ends-

Enquiries:     
Wentworth Lance Mierendorf,
Chief Financial Officer

 
lance.mierendorf@wentworthresources.com:
mailto:lance.mierendorf@wentworthresources.com
+1 403 680 8773
  Katherine Roe
Head of Investor Relations & Corporate Communications

 
katherine.roe@wentworthresources.com:
mailto:katherine.roe@wentworthresources.com
+44 7841 087 230
Swedbank First Securities Broker(Norway) +47 23 23 80 00
  Ove Gusevik  
  Jarand Lønne

 
 
Crux Kommunikasjon Investor Relations Adviser
(Norway)
+47 995 138 91
  Jan Petter Stiff  
  Carl Bachke

 
 
Stifel Nicolaus Europe Limited AIM Nominated Adviser and Broker (UK) +44 (0) 20 7710 7600
  Callum Stewart  
  Ashton Clanfield

 
 
FirstEnergy Capital Broker (UK) +44 (0) 20 7448 0200
  Travis Inlow

 
 
FTI Consulting Investor Relations Adviser (UK) + 44 (0) 20 3727 1000
  Edward Westropp
Tom Hufton
 
     
     

(1) Source: RPS Energy Canada Ltd. - Mnazi Bay Field Reserves Assessment as at December 31, 2014

***

Financial Statements

The following primary statements have been extracted from the Q1 2015 unaudited consolidated financial statements which are located on the Company's website at www.wentworthresources.com:
http://www.wentworthresources.com.

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

  March 31,
2015
December 31,
2014
ASSETS    
Current assets    
Cash and cash equivalents 4,434 5,487
Trade and other receivables 2,581 2,613
Prepayments, deposits and advances to partners 1,395 1,418
Current portion of long-term receivables 11,018 14,530
  19,428 24,048
Non-current assets    
Long-term receivables 23,200 19,472
Exploration and evaluation assets 40,745 33,762
Property, plant and equipment 87,499 85,035
  151,444 138,269
Total assets 170,872 162,317
     
LIABILITIES    
Current liabilities    
Trade and other payables 8,451 8,204
  8,451 8,204
Non-current liabilities    
Long-term loans 16,221 5,718
Contingent liability 2,458 2,271
Decommissioning provision 810 782
  19,489 8,771
Equity    
Share capital 404,225 404,225
Equity reserve 25,222 24,916
Accumulated deficit (286,515) (283,799)
  142,932 145,342
Total liabilities and equity 170,872 162,317
     

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

  Three months ended March 31,
  2015 2014
     
Total revenue 272 236
     
Operating expenses    
Production and operating (504) (372)
General and administrative (1,497) (1,809)
Share based compensation (306) (154)
Depreciation and depletion (106) (135)
Gain from sale of office assets - 23
Loss from operating activities (2,141) (2,211)
     
Finance income 1,307 1,643
Finance costs (1,882) (277)
     
Net loss and comprehensive loss (2,716) (845)
     
Net loss per ordinary share    
Basic and diluted (US$/share) (0.02) (0.01)

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

  Number of shares Share capital Equity reserve Accumulated deficit Total  equity
    $ $ $ $
           
Balance at December 31, 2013 153,872,700 403,998 23,903 (299,076) 128,825
Net loss and comprehensive loss - - - (845) (845)
Share based compensation - - 154 - 154
Balance at March 31, 2014 153,872,700 403,998 24,057 (299,921) 128,134
           
           
           
Balance at December 31, 2014 154,122,700 404,225 24,916 (283,799) 145,342
Net loss and comprehensive loss - - - (2,716) (2,716)
Share based compensation - - 306 - 306
Balance at March 31, 2015 154,122,700 404,225 25,222 (286,515) 142,932
           

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

  Year ended December 31,
  2015 2014
Operating activities    
Net income/(loss) for the period (2,716) (845)
Adjustments for:    
Share based compensation 306 154
Depreciation and depletion 106 135
Finance loss/(income), net 575 (1,366)
Gain from sale of office assets - (23)
Change in non-cash working capital (70) (18)
Cash used in operating activities (1,799) (1,963)
     
Investing activities    
Additions to evaluation and exploration assets (6,983) (4,781)
Additions to property, plant and equipment (2,570) (481)
Net (reduction)/increase in long-term receivable (542) 101
Conversion of term deposits to cash - 10,325
Interest income - 40
Change in non-cash working capital 361 -
Cash (used in)/provided by investing activities (9,734) 5,204
     
Financing activities    
Proceeds from long-term loans 10,480 -
Interest paid - (89)
Proceeds from sale of office assets - 23
Cash provided by/(used in) financing activities 10,480 (66)
     
     
Net change in cash and cash equivalents (1,053) 3,175
Cash and cash equivalents, beginning of the period 5,487 14,501
Cash and cash equivalents, end of the period 4,434 17,676

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.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Q1 2015 Financial Statements:
http://hugin.info/136496/R/1922315/689125.pdf
Q1 2015 MDA:
http://hugin.info/136496/R/1922315/689126.pdf
2015 05 19 Press Release:
http://hugin.info/136496/R/1922315/689124.pdf



This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Wentworth Resources Limited via Globenewswire

HUG#1922315