Wentworth Resources : Limited : Operations Update - First Gas Delivery

PRESS RELEASE
20 August 2015

WENTWORTH RESOURCES LIMITED

("Wentworth" or the "Company")

Operations Update - First Gas Delivery

Wentworth, the Oslo Stock Exchange (OSE: WRL) and AIM (AIM: WRL) listed independent, East Africa-focused oil & gas company, is pleased to announce an update on operations within the Mnazi Bay Concession, Southern Tanzania ("Mnazi Bay").

Highlights

• First gas delivery to the new transnational pipeline commenced on 20 August 2015
• Production rates are expected to reach 70 mmscf/d by October 2015 and 80 mmscf/d by the end of 2015
• Agreement reached on payment security terms between the gas purchaser, Tanzania Petroleum Development Corporation ("TPDC"), and the Mnazi Bay joint venture partners ("Partners")

             
             
Gas deliveries have now commenced to the new transnational pipeline in Tanzania. Two wells are now producing and the remaining three wells will be put on production in the coming months. Initial production volumes will be used for commissioning purposes and to fill the pipeline.  Production rates are expected to increase to 70 mmscf/d by October 2015 and reach 80 mmscf/d by the end of 2015.  Gas deliveries by TPDC for use by power and industrial companies are expected to commence in October. The Partners will receive payment at the end of each calendar month for sales volumes delivered during that month.   Under the Gas Sales Agreement signed on 12 September 2014, the sale price has been set at US$3.00 per million BTU, or around US$3.07 per thousand cubic feet, rising in line with the US CPI industrial index.

The Partners have agreed payment security terms with TPDC, the buyer of the gas, and various other parties.  The payment security provides the Partners with sufficient assurance that sales of natural gas will be settled in accordance with the agreed payment terms.

Geoff Bury, Managing Director, commented:

"We are very pleased to announce that production from Mnazi Bay has now commenced and the Mnazi Bay joint venture is the first supplier to the new transnational pipeline in Tanzania. Concluding the payment guarantee and starting production in our Mnazi Bay gas fields are pivotal events for Wentworth and underpin the long-term viability of our operations in East Africa and our partnership with Maurel & Prom and TPDC. 

"Wentworth is well positioned to become a significant gas producer in Tanzania, where supply and demand dynamics offer an opportunity which we and our Partners are uniquely placed to realize. We expect to exit 2015 in a strong financial position."

-Ends-

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.

Wentworth holds a 31.94% participation interest in production operations and a 39.925% participation interest in exploration operations of the Mnazi Bay Concession. M&P is operator and holds a 48.06% participation interest in production operations and 60.075% participation interest in exploration operations with Tanzania Petroleum Development Corporation ("TPDC") holding the remaining 20% participation interest in production operations.

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.