PRESS RELEASE
26 February 2015

Wentworth Resources Limited

("Wentworth" or the "Company")

Q4 2014 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 unaudited results for the fourth quarter and twelve months ended 31 December 2014.

The following should be read in conjunction with the Q4 2014 Management Discussion and Analysis ("MD&A") and Condensed Consolidated Interim Financial Statements which are available on the Company's updated website at http://www.wentworthresources.com:
http://www.wentworthresources.com/.

As previously announced, Wentworth shall be releasing its audited 2014 Annual Consolidated Financial Statements and MD&A on Monday, 16 March 2015.

2014 HIGHLIGHTS

Corporate

  • Landmark year in the development of the Company following execution of gas sales and purchase agreement ("GSA") with the Government of Tanzania.
  • GSA to supply discovered natural gas from the Mnazi Bay Concession at a price of US$3.00 per mmbtu (approximately US$3.07 per mscf) escalating at US CPI annually over a seventeen year term.
  • Poised for first production into pipeline and substantial free cash flow in 2015. 
  • The new (Government owned) Mtwara to Dar es Salaam pipeline and gas processing facilities are nearly complete with delivery of first gas for commissioning anticipated to occur in April 2015. Sales of Mnazi Bay gas to the new pipeline are expected to ramp up to 80 mmscf/day (gross) by the end of June 2015.

Financial

  • Net income in 2014 of $15.28 million ($0.10 per share) compared to a 2013 net loss of $9.99 million (($0.11) per share).
  • Recognized a non-recurring, non-cash reversal of $23.80 million of previously impaired oil and gas assets in the Mnazi Bay Concession due to the signing of the GSA and near completion of pipeline and infrastructure.
  • Revenue of $1.06 million, up 11% from 2013, due to increasing gas sales volumes at a fixed price of $5.36 per mmbtu.
  • Exploration and development capital expenditures of $22.87 million and $3.53 million respectively compared to $6.05 million and $0.98 million respectively in 2013.
  • Secured credit facilities totaling $26 million, of which $6 million was drawn down in December 2014.
  • Cash and cash equivalents on hand of $5.49 million at 31 December 2014 compared with $37.68 million, including short-term deposits, on hand at 31 December 2013.
  • Working capital at 31 December 2014 of $15.84 million compared to $38.37 million at 31 December 2013.

Operational

Mnazi Bay Block, Tanzania

  • Completed acquisition and processing of 315km of conventional 2D seismic over prospective areas in south and southwestern portion of the block.
  • Completed acquisition and processing of 58km of high resolution 2D seismic over the Mnazi Bay and Msimbati gas fields.
  • Commenced design and construction of field infrastructure to connect Mnazi Bay to the new transnational government pipeline project. 
  • Commenced planning for drilling operations of the fifth (MB-4) development well which is expected to spud in March, complete by June and is expected to initially produce 20mmscf/day.

Rovuma Onshore Block, Mozambique

·       The Tembo-1 exploration well reached a total depth of 4,553 meters and was plugged and abandoned in December 2014.  A discovery in the Cretaceous indicated 11 meters of natural gas net pay and well results are currently being evaluated to assess the potential commerciality of this discovery.
·       The drilling rig was moved from the Tembo-1 location to the Kifaru-1 exploration well location in December and drilling operations at Kifaru-1 commenced in January 2015. The Kifaru-1 well was drilled to a total depth of 3,100 metres, failed to find an economic reservoir and was plugged and abandoned on 23 February 2015.
·       Licence partners are evaluating all data collected to determine the next steps in the exploration phase of the onshore Rovuma block.

Geoff Bury, Managing Director, commented:

"With the government pipeline project on track for a Q2 2015 commissioning, Wentworth now has a defined market for its Mnazi Bay gas and is within a few months of commencing first production into the pipeline.  As a result, the Company expects to reclassify the majority of its contingent gas resources in Mnazi Bay into reserves in the near future.  As the Company ramps up production it expects to generate substantial free cash flow to fund future growth. We look forward to updating shareholders on these important near term catalysts which we anticipate will add substantial value to the Company and its shareholders."

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

 
 
Panmure Gordon AIM Nominated Adviser and Broker (UK) +44 (0) 20 7886 2500
  Dominic Morley  
  Adam James

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

 
 
Investec Broker (UK) +44 (0) 20 7597 4000
  Chris Sim

 
 
Instinctif Partners Investor Relations Adviser (UK) +44 (0) 20 7457 2020
  Catherine Wickman  
  Harry Cameron  
     

Financial Statements

The following primary statements have been extracted from the Q4 2014 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

  December 31,
2014
December 31,
2013
ASSETS    
Current assets    
Cash and cash equivalents 5,487 14,501
Short-term investments - 23,176
Trade and other receivables 2,613 1,845
Prepayments, deposits and advances to partners 1,418 1,674
Current portion of long-term receivables 14,530 658
  24,048 41,854
Non-current assets    
Long-term receivables 19,472 28,661
Exploration and evaluation assets 33,762 50,636
Property, plant and equipment 85,035 18,498
  138,269 97,795
Total assets 162,317 139,649
     
LIABILITIES    
Current liabilities    
Trade and other payables 8,204 3,487
  8,204 3,487
Non-current liabilities    
Long-term loans 5,718 3,816
Contingent long-term liabilities 2,271 2,836
Decommissioning provision 782 685
  8,771 7,337
Equity    
Share capital 404,225 403,998
Equity reserve 24,916 23,903
Accumulated deficit (283,799) (299,076)
  145,342 128,825
Total liabilities and equity 162,317 139,649
     

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

  Quarter ended December 31, Twelve months ended December 31,
  2014 2013 2014 2013
         
Total revenue 301 264 1,060 955
         
Operating expenses        
Production and operating (946) (493) (2,592) (1,656)
General and administrative (1,760) (2,145) (6,826) (7,931)
Share based compensation (305) (99) (1,090) (362)
Depreciation and depletion (96) (49) (542) (451)
Gain from sale of office assets - - 60 -
Reversal of impairment on exploration and evaluation assets 13,384 - 13,384 -
Reversal of impairment on property, plant and equipment 10,421 - 10,421 -
Income/(loss) from operating activities 20,999 (2,522) 13,875 (9,445)
         
(Loss)/gain on derivative financial liability - (111) - 610
Finance income 1,430 1,050 5,914 5,266
Finance costs (3,634) (3,038) (4,512) (6,420)
Net income/(loss) and comprehensive loss 18,795 (4,621) 15,277 (9,989)
         
Net income/(loss) per ordinary share        
Basic and diluted (US$/share) 0.12 (0.04) 0.10 (0.11)

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, 2012 82,503,940 361,675 21,996 (289,087) 94,584
Net loss and comprehensive loss - - - (9,989) (9,989)
Reclassification of warrants - - 1,678 - 1,678
Share based compensation - - 362 - 362
Issue of share capital 71,368,760 46,200 (133) - 46,067
Share issue costs - (3,877) - - (3,877)
Balance at December 31, 2013 153,872,700 403,998 23,903 (299,076) 128,825
           
           
           
Balance at December 31, 2013 153,872,700 403,998 23,903 (299,076) 128,825
Net income and comprehensive income - - - 15,277 15,277
Share based compensation - - 1,090 - 1,090
Issue of share capital 250,000 227 (77) - 150
Balance at December 31, 2014 154,122,700 404,225 24,916 (283,799) 145,342
           

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

  Quarter ended December 31, Twelve months ended December 31,
  2014 2013 2014 2013
Operating activities        
Net income/(loss) for the period 18,795 (4,621) 15,277 (9,989)
Adjustments for:        
Share based compensation 305 99 1,090 362
Depreciation and depletion 96 49 542 451
Finance loss/(income), net 2,204 1,556 (1,402) 679
Reversal of impairment on exploration and evaluation assets (13,384) - (13,384) -
Reversal of impairment on property, plant and  equipment (10,421) - (10,421) -
Gain from sale of office assets - - (60) -
Gain on derivative financial liability - 111 - (610)
Change in non-cash working capital (936) 2,710 (1,092) 1,288
Cash provided by/(used in) operating activities (3,341) (96) (9,450) (7,819)
         
Investing activities        
Additions to evaluation and exploration assets (6,422) (2,162) (22,869) (6,045)
Additions to property, plant and equipment (2,426) (104) (3,533) (975)
Short-term investments - (23,176) 23,176 (23,176)
Interest income 4 50 100 70
Net (reduction)/increase in long-term receivable (600) 106 (365) 301
Proceeds from sale of office assets - - 62 -
Change in non-cash working capital 4,454 186 4,454 1,958
Cash (used in)/provided by investing activities (4,990) (25,100) 1,025 (27,867)
         
Financing activities        
Issue of share capital, net of share issue costs - 42,119 150 42,190
Net proceeds from long-term loan 5,715 - 5,715 9,887
Repayment of long-term loan (6,000) (4,000) (6,000) (10,036)
Interest paid (72) (116) (341) (561)
Repayment of other long-term liabilities (113) (162) (113) (645)
Cash (used in)/provided by financing activities (470) 37,841 (589) 40,835
         
         
Net change in cash and cash equivalents (8,801) 12,645 (9,014) 5,149
Cash and cash equivalents, beginning of the period 14,288 1,856 14,501 9,352
Cash and cash equivalents, end of the period 5,487 14,501 5,487 14,501

About Wentworth Resources

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

Gerold Fong, Vice President of Exploration (BSC Geophysics, 1982) who has 31 years of experience in the exploration and production industry, has read and approved the technical disclosure in this regulatory announcement.

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 to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Q4 2014 Financial Statements:
http://hugin.info/136496/R/1897482/673458.pdf
Q4 2014 MDA:
http://hugin.info/136496/R/1897482/673459.pdf
2015 02 26 Press Release:
http://hugin.info/136496/R/1897482/673461.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#1897482