TOWER RESOURCES PLC — Annual Report 2014

Mar 16, 2015

PRESS RELEASE 16 March 2015

Wentworth Resources Limited

("Wentworth" or the "Company")

2014 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 2014.

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

Further to the announcement of 26 February 2015 regarding the unaudited Q4 2014 Financial Statements and MD&A, an independent reserves assessment of the Company's Tanzanian gas assets was completed and announced on 9 March 2015 and an Annual Statement of Reserves 2014 has been included in the 2014 MD&A.

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.
• Independent reserves attributed to the Company's Mnazi Bay gas fields for the first time.
• 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) commencing Q3 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 to an 18 megawatt power plant in Mtwara, Tanzania.

• 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 and used to repay a \$6 million credit facility with Vitol Energy.
• 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.
• Continuing interpretation of seismic and drilling data to support the ongoing development plan and exploration opportunities.
• 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 (gross).

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:

"We are very pleased that we now have reserves associated with our Mnazi Bay concession. This is a further step towards bringing our gas on stream and follows on from the signing of our gas sales agreement last year, and the ongoing implementation of the field infrastructure. 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, which should generate significant free cash flow in 2015."

Enquiries:

Wentworth Lance Mierendorf, Chief Financial Officer

Katherine Roe Head of Investor Relations & Corporate Communications

lance.mierendorf@wentworthresources.com +1 403 680 8773

katherine.roe@wentworthresources.com +44 7841 087 230

Swedbank First Securities	Broker(Norway) Ove Gusevik Jarand Lønne	+47 23 23 80 00
Crux Kommunikasjon	Investor Relations Adviser (Norway) Jan Petter Stiff Carl Bachke	+47 995 138 91
Panmure Gordon	AIM Nominated Adviser and Broker (UK) Dominic Morley Adam James	+44 (0) 20 7886 2500
FirstEnergy Capital	Broker (UK) Travis Inlow	+44 (0) 20 7448 0200
Investec	Broker (UK) Chris Sim	+44 (0) 20 7597 4000
Instinctif Partners	Investor Relations Adviser (UK) David Simonson Anca Spiridon	+44 (0) 20 7457 2020

Consolidated Financial Statements

The following primary statements have been extracted from the 2014 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

	December 31,	December 31,
	2014	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 Consolidated Statement of Comprehensive Income/(Loss)

United States \$000s, unless otherwise stated

	Year ended December 31,
	2014	2013
Total revenue	1,060	955
Operating expenses
Production and operating	(2,592)	(1,656)
General and administrative	(6,826)	(7,931)
Share based compensation	(1,090)	(362)
Depreciation and depletion	(542)	(451)
Gain from sale of office assets	60	-
Reversal of impairment on exploration and evaluation assets	13,384	-
Reversal of impairment on property, plant and equipment	10,421	-
Income/(loss) from operating activities	13,875	(9,445)
Gain on derivative financial liability	-	610
Finance income	5,914	5,266
Finance costs	(4,512)	(6,420)
Net income/(loss) and comprehensive loss	15,277	(9,989)
Net income/(loss) per ordinary share
Basic and diluted (US\$/share)	0.10	(0.11)

WENTWORTH RESOURCES LIMITED

Consolidated 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	-	-	-	15,277	15,277
income
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

Consolidated Statement of Cash Flows

United States \$000s, unless otherwise stated

	Year ended December 31,
	2014	2013
Operating activities
Net income/(loss) for the year	15,277	(9,989)
Adjustments for:
Share based compensation	1,090	362
Depreciation and depletion	542	451
Finance loss/(income), net	(1,402)	679
Reversal of impairment on exploration and evaluation assets	(13,384)	-
Reversal of impairment on property, plant and equipment	(10,421)	-
Gain from sale of office assets	(60)	-
Gain on derivative financial liability	-	(610)
Change in non-cash working capital	(1,092)	1,288
Cash used in operating activities	(9,450)	(7,819)
Investing activities
Additions to evaluation and exploration assets	(22,869)	(6,045)
Additions to property, plant and equipment	(3,533)	(975)
Short-term investments	23,176	(23,176)
Interest income	100	70
Net (reduction)/increase in long-term receivable	(365)	301
Proceeds from sale of office assets	62	-
Change in non-cash working capital	4,454	1,958
Cash provided by/(used in) investing activities	1,025	(27,867)
Financing activities
Issue of share capital, net of share issue costs	150	42,190
Net proceeds from long-term loan	5,715	9,887
Repayment of long-term loan	(6,000)	(10,036)
Interest paid	(341)	(561)
Repayment of other long-term liabilities	(113)	(645)
Cash (used in)/provided by financing activities	(589)	40,835
Net change in cash and cash equivalents	(9,014)	5,149
Cash and cash equivalents, beginning of the year	14,501	9,352
Cash and cash equivalents, end of the year	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.

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.