Wentworth Resources Limited : 2015 Full Year Results

PRESS RELEASE
25 February 2016

Wentworth Resources Limited

("Wentworth" or the "Company")

2015 Full Year Results

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 audited financial results for the year ended 31 December 2015.

The following should be read in conjunction with the 2015 Management Discussion and Analysis ("MD&A") and Consolidated Financial Statements which are available on the Company's website at http://www.wentworthresources.com.

An independent reserves assessment of the Company's Tanzanian gas assets has also been completed and was released today.  The full report is available on the Company's website at www.wentworthresources.com. The Annual Statement of Reserves 2015 has been included in the 2015 MD&A. 

2015 HIGHLIGHTS

Corporate

• Independent reserves evaluation attributed Wentworth's share of Proved + Probable (2P) reserves in the Company's Tanzania gas fields valued at US$179.2 million NPV (10%) after tax at December 31, 2015.
• Successful completion of a private placement on 1 July 2015 and issue of 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 from new and existing shareholders.
• Agreement reached on payment security terms between Mnazi Bay Concession parties and the gas purchaser and first gas delivery to the new government owned Mtwara to Dar es Salaam Natural Gas pipeline commenced on 20 August 2015.

Financial

• Gas sales revenue of $4.64 million, up 337% from 2014 due to the commencement of gas sales to the new Mtwara to Dar es Salaam gas pipeline during Q3 2015.   
• Net income of $27.03 million, $0.17 per share (2014 - $15.28 million, $0.10 per share).
• As a consequence of commencing deliveries of commercial quantities of gas under a long-term gas sales agreement and obtaining an independent reserve report for the Company's share of gas reserves in Tanzania, the Company recognized a non-cash deferred tax asset of $34.34 million during Q4 2015 and a non-cash impairment reversal of $23.81 million during 2014.
• Development and exploration capital expenditures of $11.84 million and $9.38 million, respectively.
• Yearend cash and cash equivalents on hand of $2.75 million (2014 - $5.49 million).

Operational

Mnazi Bay Block, Tanzania

• First gas delivery to the new government owned Mtwara to Dar es Salaam natural gas pipeline commenced on 20 August 2015.
• Average gross daily gas production of 46 MMscf/d during the fourth quarter and 16 MMscf/d for 2015, with an expected increase up to 70-80 MMscf/d by the end of Q1 2016 as gas turbines at existing and new power generation facilities are commissioned and become fully operational.
• Continued construction of field infrastructure connecting the Mnazi Bay gas assets to the government owned gas pipeline.
• Completed drilling of the MB-4 development well in the Mnazi Bay Concession. MB-4 was drilled to a total depth of 2,788 meters penetrating the Miocene gas reservoirs with net pay of 24 meters (Upper Mnazi Bay) and 43 meters (Lower Mnazi Bay) for a total net pay of 67 meters.

Rovuma Onshore Block, Mozambique

• Discussions continued with the Mozambican Government 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 gas discovery and agreeing to a multi-year appraisal plan.
• During the first quarter of 2015, the Kifaru-1 exploration well reached TD 3,100 meters in Eocene age rocks which contributed to our understanding of the regional geology. 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.

Geoff Bury, Managing Director, commented:

"2015 was a turning point year for our business; with gas from Mnazi Bay flowing into the new pipeline and the start of meaningful revenue generation, Wentworth exited 2015 in a strong financial position.  The balance sheet will strengthen throughout the coming year as gas deliveries climb to an anticipated gross 70-80 MMscf/day by the end of Q1 2016. 

"We have also announced an increase of 20% in 2P reserves in our Tanzanian Concession, which is testament to the prospectivity of the Mnazi Bay acreage.  The Company will carefully consider growth opportunities through acquisition, farm-in and/or asset purchase leveraging, from an enviable positive cash flow position and seek to take advantage of the buyers' market that is expected to remain for much of the coming year."

Consolidated Financial Statements

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

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

WENTWORTH RESOURCES LIMITED
Consolidated Statement of Comprehensive Income/(Loss)
United States $000s, unless otherwise stated

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

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

About Wentworth Resources

Wentworth Resources is a publicly traded (OSE:WRL, AIM:WRL), independent oil & gas company with: natural gas production; exploration and appraisal opportunities; and large-scale gas monetisation initiatives, 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.