TOWER RESOURCES PLC — Earnings Release 2016

Feb 28, 2017

Wentworth Resources Limited : Update and Q4 2016 Financial Statements and MD&A

Wentworth Resources Limited : Update and Q4 2016 Financial Statements and MD&A

PRESS RELEASE

28 February 2017

Wentworth Resources Limited

("Wentworth" or the "Company")

Update and Q4 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 an operational update along with its unaudited results for the

fourth quarter and twelve months ended 31 December 2016.

The following should be read in conjunction with the Q4 2016 Management

Discussion and Analysis ("MD&A") and Condensed Consolidated Interim Financial

Statements which are available on the Company's updated website at

http://www.wentworthresources.com.

Wentworth shall be issuing its audited 2016 Annual Consolidated Financial

Statements and MD&A following publication of the results of an annual

independent evaluation of the gas reserves at 31 December 2016 within the Mnazi

Bay Concession in Tanzania, carried out by RPS Energy Canada Ltd. ("RPS"),

Calgary, Canada which is expected during March 2017.

OPERATIONAL AND FINANCIAL UPDATE

* Mnazi Bay field production has averaged 44 MMscf/d year-to-date 2017, in

line with guidance of 40 - 50 MMscf/d for 2017.

* In addition, increasing gas demand from industrial customers, including

Goodwill Ceramics and Dangote Cement, is expected in 2017.

* Kinyerezi-I Expansion and Kinyerezi-II gas-fired power generation facilities

are under construction and on schedule for completion and commission

starting in 2018; anticipated additional demand from power sector of 70 -

80 MMscf/d once these new facilities are fully operational.

* All capital and operating expenditures incurred during 2016 expected to be

fully settled during Q1 2017; minimal capital expenditure planned during

* Production facilities now fully invested with capacity of up to 130 MMscf/d

and current well deliverability expected to support substantial increase in

demand.

* Work underway to secure industry partners for the appraisal programme of the

Tembo gas discovery in Mozambique; appraisal activities expected to commence

once industry partners are secured.

* Amended the timing of principal payments on the existing $20.0 million

credit facility to better align with the current production profile and

without further leveraging the Company at this time.

* Secured access to a new $2.5 million overdraft facility for working capital

purposes.

Q4 2016 HIGHLIGHTS

Financial

* Gas sales revenue of $2.73 million for the quarter, compared to $3.10

million in Q4 2015.

* Net loss of $0.42 million during Q4 2016 compared to a profit after tax of

$32.81 million in Q4 2015,which  includes a non-cash deferred tax recovery

of $34.34 million.

* Capital expenditures of $0.67 million compared to $0.73 million during Q4

* Cash and cash equivalents on hand of $0.98 million compared with $2.75

million on hand at December 31, 2015.

* Working capital was $4.96 million compared to $11.98 million at December

31, 2015.

* Reduced outstanding debt to $20.67 million following a $1.0 million

principal payment during Q4 2016 (2015 - $26.0 million).

Operational

Tanzania

* The Mnazi Bay field achieved average gross daily gas production during the

fourth quarter of 39.4 MMscf/d compared to 34.3 MMscf/d during Q3 2016 as

less downtime was experienced at the gas fired power generation facilities,

Ubungo-II and Kinyerezi-I power stations.

* Expansion of the liquid separation units and gas processing facilities at

Mnazi Bay was ongoing during Q4 2016 with commissioning and full operations

expected in Q2 2017.

Mozambique

* Completed reprocessing of approximately 1,000 km of 1984/1985 vibroseis data

which represents all of the existing regional seismic coverage over the

Tembo appraisal area.

* Finalized the design details of a new 2D seismic survey of approximately

700 km of new data.

Geoff Bury, Managing Director, commented:

"Fourth quarter gas sales volumes were in line with our guidance of 40 and 50

MMscf/d and we remain confident this level is achievable for 2017, as we

anticipate new demand from a local cement factory and a ceramics facility.  We

expect a material increase in gas demand beginning in 2018 when the new

Kinyerezi-I expansion and Kinyerezi-II power plants are commissioned.  The

Company has taken prudent steps in order to reduce administrative and overhead

costs coinciding with the reduction in capital activity expected in 2017.

During the quarter we have also had productive discussions with our external

lenders, amending the timing of principal payments on the existing $20.0 million

facility, to better align repayments with the current production profile.  We

are confident in the Company's ability to generate positive cashflow at the

existing production levels, allowing any upside in demand during 2017 to

directly benefit the bottom line."

"The Company is focused on advancing a new 2D seismic acquisition program over

the Tembo appraisal area in Mozambique and will be looking to secure an industry

partner to share the costs and risk on the appraisal of the gas discovery."

"We enter 2017 with a positive outlook and with a business which is well

positioned to take full advantage of the growing gas to power energy sector in

Tanzania."

A conference call for investors, analysts and other interested parties will be

held this morning at 01:30 MST (Calgary) / 08:30 GMT (London) / 09:30 CET

(Oslo).  Call in numbers:

Call in numbers:

Canada: +1 647 484 0480

Norway: +47 2350 0296

United States: +1 719 457 2086

International/ United Kingdom Dial In: +44 (0)330 336 9411

The participants will be asked for their name, company and confirmation code.

The Wentworth Resources confirmation code is: 3878585.

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

Crux Advisers Investor Relations +47 909 808 48

Adviser

(Norway)

Carl Bachke

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

Europe Limited Adviser and Broker

(UK)

Callum Stewart

Nicholas Rhodes

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

Financial Statements

The following primary statements have been extracted from the Q4 2016 unaudited

condensed 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

December 31, December 31,

2016 2015

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

ASSETS

Current assets

Cash and cash equivalents 979 2,746

Trade and other receivables 6,699 3,253

Prepayments, deposits and advances to partners 187 841

Current portion of long-term receivables 12,283 18,190

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

20,148 25,030

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

Non-current assets

Long-term receivables 18,034 18,897

Exploration and evaluation assets 45,538 43,141

Property, plant and equipment 93,366 95,168

Deferred tax asset 31,145 34,341

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

188,083 191,547

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

Total assets 208,231 216,577

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

LIABILITIES

Current liabilities

Trade and other payables 8,675 6,269

Current portion of long-term loans 5,258 5,270

Current portion of other liability 1,260 1,508

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

15,193 13,047

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

Non-current liabilities

Long-term loans 15,254 20,512

Other liability 1,100 1,634

Decommissioning provision 773 973

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

17,127 23,119

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

Equity

Share capital 411,493 411,493

Equity reserve 26,275 25,683

Accumulated deficit (261,857) (256,765)

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

175,911 180,411

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

Total liabilities and equity 208,231 216,577

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

WENTWORTH RESOURCES LIMITED

Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss

United States $000s, unless otherwise stated

Three months ended Twelve months ended

December 31, December 31,

2016 2015 2016 2015

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

Total revenue 2,730 3,101 11,750 4,637

Operating expenses

Production and operating (923) (569) (3,371) (3,214)

General and administrative (1,264) (2,035) (5,397) (6,367)

Depreciation and depletion (729) (1,045) (3,864) (1,707)

Share based compensation (121) (173) (592) (767)

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

Loss from operating (307) (721) (1,474) (7,418)

Finance income 1,051 1,020 4,693 4,818

Finance costs (1,045) (1,829) (5,115) (4,707)

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

Loss before tax (301) (1,530) (1,896) (7,307)

Deferred tax (121) 34,341 (3,196) 34,341

(expense)/recovery

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

Net (loss)/profit and (422) 32,811 (5,092) 27,034

comprehensive (loss)/profit

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

Net (loss)/profit per

ordinary share

Basic and diluted - 0.19 (0.03) 0.17

(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 - - - 27,034 27,034

comprehensive

loss

Share based - - 767 - 767

compensation

Issue of share 15,412,269 7,639 - - 7,639

capital

Share issue - (371) - - (371)

costs

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

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

December

31, 2015

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

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

December

31, 2015

Net loss and - - - (5,092) (5,092)

comprehensive

loss

Share based - - 592 - 592

compensation

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

Balance at 169,534,969 411,493 26,275 (261,857) 175,911

December

31, 2016

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

WENTWORTH RESOURCES LIMITED

Unaudited Condensed Consolidated Interim Statement of Cash Flows

United States $000s, unless otherwise stated

Three months ended Twelve months ended

December 31, December 31,

2016 2015 2016 2015

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

Operating activities

Net (loss)/profit for the (422) 32,811 (5,092) 27,034

period

Adjustments for:

Depreciation and depletion 729 1,045 3,864 1,707

Finance (income)/costs, net (6) 809 422 (111)

Deferred tax 121 (34,341) 3,196 (34,341)

expense/(recovery)

Share based compensation 121 173 592 767

Change in non-cash working (1,371) (348) (2,506) 175

capital

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

Net cash (utilized (828) 149 476 (4,769)

in)/generated from

operating activities

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

Investing activities

Acquisitions of evaluation (736) 687 (2,371) (10,299)

and exploration assets

Acquisitions of property, (2,338) (692) (2,347) (12,926)

plant and equipment

Reductions of/(additions 2,469 556 10,763 (1,116)

to) long-term receivable

Interest income - 7 - 7

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

Net cash (used in)/from (605) 558 6,045 (24,334)

investing activities

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

Financing activities

Proceeds from long-term - - - 20,000

loan

Repayment of long-term loan (1,000) - (5,333) -

Interest paid (214) (243) (2,073) (906)

Issue of share capital, net - - - 7,268

of issue costs

Payment of other liability (102) - (882) -

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

Net cash (used in)/from (1,316) (243) (8,288) 26,362

financing activities

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

Net change in cash and cash (2,749) 464 (1,767) (2,741)

equivalents

Cash and cash equivalents, 3,728 2,282 2,746 5,487

beginning of the period

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

Cash and cash equivalents, 979 2,746 979 2,746

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.

This announcement contains inside information as defined in EU Regulation No.

596/2014 and is in accordance with the Company's obligations under Article 17 of

that Regulation.