TOWER RESOURCES PLC — Earnings Release 2016

Aug 16, 2016

Wentworth Resources Limited : Q2 2016 Financial Statements and MD&A

Wentworth Resources Limited : Q2 2016 Financial Statements and MD&A

PRESS RELEASE

16 August 2016

Wentworth Resources Limited

("Wentworth" or the "Company")

Q2 2016 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 ended 30 June 2016.

The following should be read in conjunction with the Q2 2016 Management

Discussion and Analysis and Financial Statements which are available on the

Company's updated website at http://www.wentworthresources.com.

Q2 2016 HIGHLIGHTS

Financial

* Gas sales revenue of $3.43 million for the quarter, compared to $0.29

million in Q2 2015.

* Net loss for the quarter of $0.17 million, compared to a net loss of $1.81

million in Q2 2015.

* Exploration and development capital expenditures of $2.16 million compared

to $9.35 million during Q2 2015.

* Commenced repayment of existing debt facility with $1.0m principal repayment

during Q2 2016.

* Increase in cash and cash equivalents to $6.29 million at June 30, 2016 from

$2.75 million on hand at December 31, 2015.

* June 30, 2016 working capital was $7.28 million compared to $11.98 million

at December 31, 2015.

Operational

Tanzania

* Achieved average gross daily gas production for the second quarter of 51

MMscf/d compared to first quarter production of 48 MMscf/d.

* Installation of remaining components of permanent field infrastructure was

ongoing during Q2 2016 and is expected to be completed by the end of Q4

Mozambique

* Received Mozambique Government approval of a two-year appraisal program for

the Tembo gas discovery and increasing Wentworth's participation interest in

the Tembo appraisal area of the Rovuma Onshore Block from 11.59 per cent to

85 per cent.  Wentworth has been appointed Operator.

* Commenced reprocessing existing 2D seismic data over the Tembo appraisal

area as the first step in appraising the discovery.

* Preliminary evaluation of the Tembo-1 well results and the regional seismic

evaluation suggests the possibility of a substantial hydrocarbon

accumulation.

Geoff Bury, Managing Director, commented:

"In Tanzania, Wentworth has seen significant growth in gas sales since the start

of operation of the new pipeline in August 2015. This provides the Company with

consistent cash flow to fund our ongoing activities, service our debt facility

and to build cash reserves.  As we continue to strengthen our balance sheet, we

look forward to growing the Company without having to rely on the equity markets

to do so.

We are extremely pleased to have reached an agreement with the Government of

Mozambique to increase our participating interest to 85% in the Onshore Rovuma

Block, to be appointed Operator of the block and to have agreed an appraisal

plan for the Tembo discovery. This expands our portfolio in the Rovuma Basin, a

region that has recently seen significant interest from super-majors and

national oil companies. As operator of this concession we have the ability to

match the timing of the appraisal activities to our available cashflow and with

our increased interest we have the flexibility to seek industry partners to

participate in this appraisal plan."

Enquiries:

Wentworth Lance Mierendorf, lance.mierendorf@wentworthresources.com

Chief Financial +1 403 680 8773

Officer

Katherine Roe katherine.roe@wentworthresources.com

Vice President +44 7841 087 230

Corporate

Development &

Investor Relations

Swedbank First Broker (Norway) +47 23 23 80 00

Securities

Ove Gusevik

Jarand Lønne

Crux Advisers Investor Relations +47 909 808 48

Adviser

(Norway)

Jan Petter Stiff

Carl Bachke

Stifel Nicolaus AIM Nominated +44 (0) 20 7710 7600

Europe Limited Adviser and Broker

(UK)

Callum Stewart

Ashton Clanfield

FirstEnergy Capital Broker (UK) +44 (0) 20 7448 0200

Hugh Sanderson

FTI Consulting Investor Relations wentworth@fticonsulting.com

Adviser (UK) +44 (0) 20 3727 1000

Edward Westropp

Tom Hufton

Financial Statements

The following primary statements have been extracted from the Q2 2016 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

June 30, December 31,

2016 2015

---------------------------

ASSETS

Current assets

Cash and cash equivalents 6,285 2,746

Trade and other receivables 5,205 3,253

Prepayments, deposits and advances to partners 257 841

Current portion of long-term receivables 15,024 18,190

---------------------------

26,771 25,030

---------------------------

Non-current assets

Long-term receivables 18,423 18,897

Exploration and evaluation assets 44,253 43,141

Property, plant and equipment 94,576 95,168

Deferred tax asset 33,962 34,341

---------------------------

191,214 191,547

---------------------------

Total assets 217,985 216,577

---------------------------

LIABILITIES

Current liabilities

Trade and other payables 9,790 6,269

Current portion of long-term loans 8,595 5,270

Current portion of other liability 1,108 1,508

---------------------------

19,493 13,047

---------------------------

Non-current liabilities

Long-term loans 16,225 20,512

Other liability 1,504 1,634

Decommissioning provision 1,067 973

---------------------------

18,796 23,119

---------------------------

Equity

Share capital 411,493 411,493

Equity reserve 26,047 25,683

Accumulated deficit (257,844) (256,765)

---------------------------

179,696 180,411

---------------------------

Total liabilities and equity 217,985 216,577

---------------------------

WENTWORTH RESOURCES LIMITED

Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss

United States $000s, unless otherwise stated

Three months ended June Six months ended June

30, 30,

2016 2015 2016 2015

--------------------------------------------------

Total revenue 3,430 292 6,636 564

Operating expenses

Production and operating (773) (1,389) (1,670) (1,893)

General and administrative (1,556) (1,356) (3,068) (2,853)

Depreciation and depletion (1,189) (122) (2,303) (228)

Share based compensation (136) (152) (364) (458)

--------------------------------------------------

Loss from operating (224) (2,727) (769) (4,868)

activities

Finance income 1,072 1,387 2,339 2,694

Finance costs (1,062) (472) (2,270) (2,354)

--------------------------------------------------

Loss before tax (214) (1,812) (700) (4,528)

Deferred tax 40 - (379) -

recovery/(expense)

--------------------------------------------------

Net loss and comprehensive (174) (1,812) (1,079) (4,528)

loss

--------------------------------------------------

Net loss per ordinary share

Basic and diluted (0.00) (0.01) (0.01) (0.03)

(US$/share)

--------------------------------------------------

WENTWORTH RESOURCES LIMITED

Unaudited Condensed Consolidated Interim Statement of Changes in Equity

United States $000s, unless otherwise stated

Number of Share Equity Accumulated Total

shares capital reserve deficit equity

$ $ $ $

--------------------------------------------------------------

Balance at 154,122,700 404,225 24,916 (283,799) 145,342

December

31, 2014

Net loss and - - - (4,528) (4,528)

comprehensive

loss

Share based - - 458 - 458

compensation

--------------------------------------------------------------

Balance at June 154,122,700 404,225 25,374 (288,327) 141,272

30, 2015

--------------------------------------------------------------

Balance at 169,534,969 411,493 25,683 (256,765) 180,411

December

31, 2015

Net loss and - - - (1,079) (1,079)

comprehensive

loss

Share based - - 364 - 364

compensation

--------------------------------------------------------------

Balance at June 169,534,969 411,493 26,047 (257,844) 179,696

30, 2016

--------------------------------------------------------------

WENTWORTH RESOURCES LIMITED

Unaudited Condensed Consolidated Interim Statement of Cash Flows

United States $000s, unless otherwise stated

Three months ended June Six months ended June

30, 30,

2016 2015 2016 2015

--------------------------------------------------

Operating activities

Net loss for the period (174) (1,812) (1,079) (4,528)

Adjustments for:

Depreciation and depletion 1,189 122 2,303 228

Finance income, net (10) (915) (69) (340)

Deferred tax (40) - 379 -

(recovery)/expense

Share based compensation 136 152 364 458

Change in non-cash working (88) 2,448 (1,027) 2,378

capital

--------------------------------------------------

Net cash generated 1,013 (5) 871 (1,804)

from/(utilized in) operating

activities

--------------------------------------------------

Investing activities

Acquisitions of evaluation - (1,355) - (7,152)

and exploration assets

Acquisitions of property, (9) (4,138) (9) (7,400)

plant and equipment

Reductions of/(additions to) 2,699 (829) 5,295 (1,504)

long-term receivable

--------------------------------------------------

Net cash from/(used in) 2,690 (6,322) 5,286 (16,056)

investing activities

--------------------------------------------------

Financing activities

Repayment of long-term loan (1,000) - (1,000) -

Proceeds from long-term loan - 4,359 - 14,839

Interest paid (251) (242) (1,024) (242)

Payment of other liability (221) - (594) -

--------------------------------------------------

Net cash (used in)/from (1,472) 4,117 (2,618) 14,597

financing activities

--------------------------------------------------

Net change in cash and cash 2,231 (2,210) 3,539 (3,263)

equivalents

Cash and cash equivalents, 4,054 4,434 2,746 5,487

beginning of the period

--------------------------------------------------

Cash and cash equivalents, 6,285 2,224 6,285 2,224

end of the period

--------------------------------------------------

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, 2015,

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.

[HUG#2035376]