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-

Enquiries:
Wentworth	Lance Mierendorf, Chief Financial Officer	lance.mierendorf@wentworthresources.com +1 403 680 8773
	Katherine Roe Head of Investor Relations & Corporate Communications	katherine.roe@wentworthresources.com +44 7841 087 230
Swedbank First Securities	Broker(Norway)	+47 23 23 80 00
	Ove Gusevik
	Jarand Lønne
Crux Advisors	Investor Relations Adviser (Norway)	+47 909 808 48
	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
	Hugh Sanderson
FTI Consulting	Investor Relations Adviser (UK)	+ 44 (0) 20 3727 1000
	Edward Westropp Tom Hufton

***

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

	September 30, 2015	December 31, 2014
ASSETS
Current assets
Cash and cash equivalents	2,282	5,487
Trade and other receivables	2,712	2,613
Prepayments, deposits and advances to partners	226	1,418
Current portion of long-term receivables	24,305	14,530
	29,525	24,048
Non-current assets
Long-term receivables	13,435	19,472
Exploration and evaluation assets	43,434	33,762
Property, plant and equipment	95,192	85,035
	152,061	138,269
Total assets	181,586	162,317
LIABILITIES
Current liabilities
Trade and other payables	4,254	7,343
Current portion of contingent liability	3,214	861
Current portion of long-term loans	4,333	-
	11,801	8,204
Non-current liabilities
Long-term loans	21,437	5,718
Contingent liability	-	2,271
Decommissioning provision	921	782
	22,358	8,771
Equity
Share capital	411,493	404,225
Equity reserve	25,510	24,916
Accumulated deficit	(289,576)	(283,799)
	147,427	145,342
Total liabilities and equity	181,586	162,317

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

	Quarter ended September 30,		Nine months ended  September 30,
	2015	2014	2015	2014
Total revenue	972	270	1,536	759
Operating expenses
Production and operating	(752)	(474)	(2,645)	(1,646)
General and administrative	(1,479)	(1,767)	(4,332)	(5,066)
Share based compensation	(136)	(308)	(594)	(785)
Depreciation and depletion	(434)	(155)	(662)	(446)
Gain from sale of office assets	-	5	-	60
Loss from operating activities	(1,829)	(2,429)	(6,697)	(7,124)
Finance income	1,205	1,437	3,899	4,484
Finance costs	(625)	(326)	(2,979)	(878)
Net loss and comprehensive loss	(1,249)	(1,318)	(5,777)	(3,518)
Net loss per ordinary share
Basic and diluted (US$/share)	(0.01)	(0.01)	(0.04)	(0.02)

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	-	-	-	(3,518)	(3,518)
Share based compensation	-	-	785	-	785
Issue of share capital	250,000	227	(77)	-	150
Balance at September 30, 2014	154,122,700	404,225	24,611	(302,594)	126,242
Balance at December 31, 2014	154,122,700	404,225	24,916	(283,799)	145,342
Net loss and comprehensive loss	-	-	-	(5,777)	(5,777)
Share based compensation	-	-	594	-	594
Issue of share capital	15,412,269	7,639	-	-	7,639
Share issue costs	-	(371)	-	-	(371)
Balance at September 30, 2015	169,534,969	411,493	25,510	(289,576)	147,427

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

	Quarter ended  September 30,		Nine months ended  September 30,
	2015	2014	2015	2014
Operating activities
Net income/(loss) for the period	(1,249)	(1,318)	(5,777)	(3,518)
Adjustments for:
Share based compensation	136	308	594	785
Depreciation and depletion	434	155	662	446
Finance loss, net	(580)	(1,111)	(920)	(3,606)
Gain from sale of office assets	-	(5)	-	(60)
Change in non-cash working capital	(1,855)	3,760	523	(156)
Cash (used in)/generated from operating activities	(3,114)	1,789	(4,918)	(6,109)
Investing activities
Additions to evaluation and exploration assets	(382)	(7,976)	(9,672)	(16,447)
Additions to property, plant and equipment	(1,158)	(331)	(10,770)	(1,107)
Net (increase)/reduction in long-term receivable	481	43	(1,472)	235
Conversion of term deposits to cash	-	4,013	-	23,176
Interest income	-	21	-	96
Change in non-cash working capital	(7,777)	-	(2,978)	-
Cash (used in)/from investing activities	(8,836)	(4,230)	(24,892)	5,953
Financing activities
Issue of share capital, net of issue costs	7,268	-	7,268	150
Proceeds from long-term loans	5,161	-	20,000	-
Interest paid	(421)	(91)	(663)	(269)
Proceeds from sale of office assets	-	7	-	62
Cash from/(used in) financing activities	12,008	(84)	26,605	(57)
Net change in cash and cash equivalents	58	(2,525)	(3,205)	(213)
Cash and cash equivalents, beginning of the period	2,224	16,813	5,487	14,501
Cash and cash equivalents, end of the period	2,282	14,288	2,282	14,288

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.

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Source: Thomson Reuters ONE (November 19, 2015 - 2:00 AM EST)

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