Wentworth Resources Limited : Q2 2017 and Half Year Financial Statements and MD&A

PRESS RELEASE
10 August 2017

Wentworth Resources Limited

("Wentworth" or the "Company")

Q2 2017 and Half Year 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 quarter and six months ended 30 June 2017.

The following should be read in conjunction with the Q2 2017 Management Discussion and Analysis and Financial Statements which are available on the Company's updated website at http://www.wentworthresources.com.

Corporate

• On 23 May 2017, the Company completed a private placement and issued 16,953,496 new common shares, for cash consideration of $0.326 (GBP 0.25 or NOK 2.73) per share for total gross proceeds of $5.53 million (GBP4.2 million or NOK46.3 million).

Financial

• Gas sales revenue of $2.15 million for the quarter, compared to $2.94 million in Q1 2017 and $3.43 million in Q2 2016.    For the Half-year 2017 revenue was $5.10 million compared to $6.64 million in 2016. 
• Net loss of $1.25 million and $1.66 million in Q2 and Half-year 2017 compared to net losses of $0.17 million and $1.08 in 2016 respectively.
• Capital expenditures of $0.61 million during Q2 and $1.3 million during Half-year 2017 which compares to $2.16 million and $2.82 million in 2016 respectively.
• Cash and cash equivalents on hand of $3.83 million compared with $0.98 million on hand at December 31, 2016.
• Working capital of $9.08 million compared to $4.96 million at December 31, 2016.
• Drew $0.56 million on new overdraft credit facility for working capital purposes during Q2 2017.

Operational

Tanzania

• Following 2016, a year in which gas demand varied significantly on a month to month basis as existing government owned gas infrastructure was upgraded, new infrastructure was commissioned and industry participation in the gas supply and electrical power generation was established, gas demand started to stabilise in the first half of 2017. 
• Since the end of the wet season during Q2 2017 when hydro power generation is at its annual peak, gas production volumes have increased substantially.
• The Mnazi Bay field achieved average gross daily gas production during the quarter of 30.7 MMscf/d and 36.9 MMscf/d during the first half of 2017, with June 2017 production averaging 44.3 MMscf/d.  Gross gas sales for Q2 to date have reached over 60 MMscf/d with management's forecast for the full year 2017 remaining within the guided range of 40 to 50 MMscf/d. 
• Managed working capital with focus on petitioning purchasers of gas to improve the timeliness of settling amounts owing and working with our two main creditors, local banks and the operator of the Manzi Bay Concession, to pay obligations upon settlement of receivables.

Mozambique

• Proceeding with plan to commence the drilling of an appraisal well on the Tembo discovery next year, before acquiring additional seismic if necessary. Consideration to acquiring additional seismic will be contingent upon the results of the appraisal well.
• Continued work on reprocessing existing 2-D vibroseis seismic data, completed Tembo-1 well analysis and continued mapping and interpretation of all existing data with a view to selecting a well location.
• Continued the process of securing an industry partner to participate in the appraisal programme in advance of drilling an appraisal well.

Geoff Bury, Managing Director, commented:

"Second quarter production was impacted by the rainy season during which hydro power generation is used as a substitute for gas-fired power generation but production rebounded to an average for July of 61 MMscf/d and we continue to maintain an average production guidance for the year of between 40 and 50 MMscf/d.

The Company is effectively managing working capital through a period of slower payments from its government agency customers TPDC and TANESCO. These efforts include being fully engaged with Maurel & Prom and our local Tanzania based banking institutions to effectively settle obligations as cash flows improve through higher production volumes.

We continue to advance the process of securing a farm-in partner for the drilling of an appraisal well in Mozambique and have received very positive initial interest from industry. The Mozambique government has expressed their support for the drilling of an appraisal well in 2018 in advance of the need to acquire new seismic data over the gas discovery area. The Company is currently determining a well location and expects to secure a farm-in partner before the commencement of drilling operations."

A conference call for investors, analysts and other interested parties will be held this morning at 01.30 MDT (Calgary) / 08.30 BST (London) / 09.30 CEST (Oslo). 

Call in numbers:

Please dial in 5-10 minutes prior to the start time and join the call by referencing "Wentworth Q2

Results".

Participant Std International Dial-In: +44 (0) 1452 542303

Participant UK LocalCall Dial-In Number:

United Kingdom, LocalCall: 08448719456

Norway: 21033911

Participant FreeCall Dial in numbers:

Canada: 18669923610

France: 0805110467

Norway: 80016886

United States: 18663899778

-Ends-

Financial Statements

The following primary statements have been extracted from the Q2 2017 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

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

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

WENTWORTH RESOURCES LIMITED
Unaudited Condensed Consolidated Interim 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.