TOWER RESOURCES PLC — Interim / Quarterly Report 2014

Nov 18, 2014

Wentworth Resources Limited : Q3 2014 Financial Statements and MD&A

Wentworth Resources Limited : Q3 2014 Financial Statements and MD&A

PRESS RELEASE

18 November 2014

Wentworth Resources Limited

("Wentworth" or the "Company")

Q3 2014 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 third quarter and nine months ended 30

September 2014.

The following should be read in conjunction with the Q3 2014 Management

Discussion and Analysis and Financial Statements which are available on the

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

Q3 2014 Highlights

·       Signed a long-term gas sales and purchase agreement to supply discovered

natural gas at a price of US$3.00 per mmbtu (approximately US$3.07 per mscf)

from our Mnazi Bay Concession to the new Government owned pipeline, which is

scheduled for completion and commissioning during Q1 2015.

·       Agreed the terms for two credit facilities totaling $26 million with a

Tanzanian bank.  Execution of the credit facility agreements is anticipated

during Q4 2014 pending finalization of a security agreement with the bank.

Following execution of the credit facility agreements, the Company will use the

funds to pay for field infrastructure costs, drilling of one development well in

Tanzania and the repayment of an existing $6 million long-term loan.

·       Completed acquisition of 315 km of conventional 2D seismic over

prospective areas of the Mnazi Bay Concession and commenced processing and

interpreting of the data.

·       Continued drilling the Tembo-1 exploration well in the Rovuma Onshore

Block in Mozambique.

·       Third quarter and nine months capital expenditures of $8.3 million and

$17.6 million, respectively, compared to $1.1 million and $4.8 million

respectively during the same periods in 2013.

·       Loss from operating activities for the quarter of $2.4 million compared

with a loss of $2.3 during the same period in 2013.

·       Cash and cash equivalents and short-term deposits of $14.3 million at

September 30, 2014 compared with $37.7 million at December 31, 2013.

·       Working capital at September 30, 2014 was $24.0 million compared to

$38.4 million at December 31, 2013.

Outlook

·       The frontier exploration well located onshore Mozambique, Tembo-1, which

commenced operations in June 2014 has reached a depth of approximately 2,965

meters on October 30, 2014.  Although it is difficult to predict how long

drilling will take, the Company plans to provide a complete update to

shareholders on the results once drilling operations are complete.

·       Following completion of Tembo-1 well, the drilling rig will be mobilized

to the northern section of the Onshore Rovuma Block, Mozambique and will

commence drilling of the Kifaru-1 prospect.

·       Development activity in the Mnazi Bay Concession will increase during

the months leading up to delivery of first gas to the Government owned

pipeline.  Wentworth's share of development expenses will be financed by a debt

facility from a Tanzanian based bank.  Funds from the debt facility will be

accessible following completion and execution of legal loan documentation

anticipated during Q4 2014.

Geoff Bury, Managing Director, commented:

"Signing of a long-term gas sales agreement on September 12, 2014 was a key

milestone for Wentworth and has established a solid foundation for significant

growth in East Africa.  With the Government owned, Chinese constructed gas

pipeline and gas processing facilities on schedule for completion and

commissioning in Q1 2015, development activities connecting our existing field

infrastructure to the pipeline have accelerated.   We expect to be ready to

deliver gas from our discovered gas fields in Mnazi Bay when requested by the

Government and production is expected to reach 80mmscf/day by the end of Q2

Drilling of the Tembo-1 exploration well has taken much longer than originally

planned and we appreciate the patience of shareholders as the well remains a

tight hole until drilling operations are complete.  With the drilling of Tembo-

1 and Kifaru-1 and the delivery of first gas, the next 3-6 months looks to be a

transformational period in the Company's short history."

Enquiries:

Wentworth Lance Mierendorf, Lance.mierendorf@wentworthresources.com

Chief Financial +1 403 680 8773

Officer

Katherine Roe, Head Katherine.roe@wentworthresources.com

of Investor +44 7841 087 230

Relations and

Corporate

Communications

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

Securities

Ove Gusevik

Jarand Lønne

Crux Kommunikasjon Investor Relations

Adviser

(Norway)

Jan Petter Stiff +47 99 51 38 91

Carl Christian +47 90 98 08 48

Bachke

Panmure Gordon AIM Nominated +44 (0) 20 7886 2500

Adviser and Broker

(UK)

Dominic Morley

Adam James

Tom Salvesen

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

Capital

Majid Shafiq

Travis Inlow

Investec Broker (UK) +44 (0) 20 7597 4000

Chris Sim

Instinctif Investor Relations +44 (0) 20 7457 2020

Partners Adviser (UK)

Catherine Wickman

Harry Cameron

Financial Statements

The following primary statements have been extracted from the Q3 2014 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

September 30, December 31,

2014 2013

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

ASSETS

Current assets

Cash and cash equivalents 14,288 14,501

Short-term investments - 23,176

Trade and other receivables 2,454 1,845

Prepayments, deposits and advances to partners 904 1,674

Current portion of long-term receivables 10,262 658

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

27,908 41,854

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

Non-current assets

Long-term receivables 23,210 28,661

Exploration and evaluation assets 67,083 50,636

Property, plant and equipment 19,157 18,498

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

109,450 97,795

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

Total assets 137,358 139,649

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

LIABILITIES

Current liabilities

Trade and other payables 3,928 3,487

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

3,928 3,487

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

Non-current liabilities

Long-term loans 4,146 3,816

Other long-term liabilities 2,284 2,836

Decommissioning provision 758 685

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

7,188 7,337

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

Equity

Share capital 404,225 403,998

Equity reserve 24,611 23,903

Accumulated deficit (302,594) (299,076)

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

126,242 128,825

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

Total liabilities and equity 137,358 139,649

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

WENTWORTH RESOURCES LIMITED

Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss

United States $000s, unless otherwise stated

Three months ended Nine months ended

September 30, September 30,

2014 2013 2014 2013

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

Total revenue 270 240 759 691

Operating expenses

Production and operating (474) (409) (1,646) (1,163)

General and (1,767) (1,847) (5,066) (5,786)

administrative

Share based compensation (308) (109) (785) (263)

Depreciation and (155) (140) (446) (402)

depletion

Gain from sale of office 5 - 60 -

assets

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

Loss from operating (2,429) (2,265) (7,124) (6,923)

activities

Finance income 1,437 1,454 4,484 4,216

Finance costs (326) (2,939) (878) (3,382)

Gain on derivative - 328 - 721

financial liability

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

Net loss and (1,318) (3,422) (3,518) (5,368)

comprehensive loss

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

Net loss per ordinary

share

Basic and diluted (0.01) (0.04) (0.02) (0.06)

(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 82,503,940 361,675 21,996 (289,087) 94,584

December

31, 2012

Net loss and - - - (5,368) (5,368)

comprehensive

loss

Share based - - 263 - 263

compensation

Issue of share 85,000 108 (37) - 71

capital

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

Balance at 82,588,940 361,783 22,222 (294,455) 89,550

September

30, 2013

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

Balance at 153,872,700 403,998 23,903 (299,076) 128,825

December

31, 2013

Net loss and - - - (3,518) (3,518)

comprehensive

loss

Share based - - 785 - 785

compensation

Issue of share 250,000 227 (77) - 150

capital

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

Balance at 154,122,700 404,225 24,611 (302,594) 126,242

September

30, 2014

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

WENTWORTH RESOURCES LIMITED

Unaudited Condensed Consolidated Interim Statement of Cash Flows

United States $000s, unless otherwise stated

Three months ended September 30, Nine months ended

September 30,

2014 2013 2014 2013

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

Operating activities

Net loss for the period (1,318) (3,422) (3,518) (5,368)

Adjustments for:

Share based compensation 308 109 785 263

Depreciation and depletion 155 140 446 402

Finance income, net (1,111) 1,485 (3,606) (834)

Gain from sale of assets (5) - (60) -

Gain on derivative financial   - (328) - (721)

liability

Change in non-cash working 3,760 (218) (156) (1,465)

capital

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

Cash provided by/(used in) 1,789 (2,234) (6,109) (7,723)

operating activities

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

Investing activities

Additions to evaluation and (7,976) (628) (16,447) (3,883)

exploration assets

Additions to property, plant (331) (450) (1,107) (871)

and equipment

Conversion of term-deposits 4,013 - 23,176 -

to cash

Interest income 21 1 96 20

Net reduction in long-term 43 68 235 195

receivable

Change in non-cash working - 397 - 1,772

capital

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

Cash (used in)/provided by (4,230) (612) 5,953 (2,767)

investing activities

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

Financing activities

Issue of share capital - - 150 71

Net proceeds from long-term - 5,965 - 9,887

loan

Repayment of long-term loan - (5,437) - (6,036)

Interest paid (91) (175) (269) (445)

Proceeds from sale of office 7 - 62 -

assets

Decrease of other long-term - (157) - (483)

liabilities

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

Cash (used in)/provided by (84) 196 (57) 2,994

financing activities

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

Net change in cash and cash (2,525) (2,650) (213) (7,496)

equivalents

Cash and cash equivalents, 16,813 4,506 14,501 9,352

beginning of the period

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

Cash and cash equivalents, 14,288 1,856 14,288 1,856

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; 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.

Gerold Fong, Vice President of Exploration (BSC Geophysics, 1982) who has 31

years of experience in the exploration and production industry, has read and

approved the technical disclosure in this regulatory announcement.

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, 2013,

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#1872267]