TOWER RESOURCES PLC — Interim / Quarterly Report 2016

Nov 15, 2016

Wentworth Resources Limited : Q3 2016 Financial Statements and MD&A

Wentworth Resources Limited : Q3 2016 Financial Statements and MD&A

PRESS RELEASE

15 November 2016

Wentworth Resources Limited

("Wentworth" or the "Company")

Q3 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 September 2016.

The following should be read in conjunction with the Q3 2016 Management

Discussion and Analysis and Financial Statements which are available on the

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

Q3 2016 HIGHLIGHTS

Financial

* Gas sales revenue of $2.38 million for the quarter (Q3 2015: $0.97 million)

* Loss before tax for the quarter of $0.9 million (Q3 2015: $1.25 million)

* Exploration, appraisal and development capital expenditures of $0.97 million

(Q3 2015: $1.51 million)

* Outstanding debt reduced to $21.7 million following a $3.33 million

principal payment during the period

* Cash and cash equivalents on hand of $3.73 million at September 30, 2016

(December 31, 2015: $2.75 million)

* Working capital was $1.59 million at September 30, 2016 (December 31, 2015:

$11.98 million)

* Continue to make progress to expand the Company's external debt capacity of

up to $50 million

Operational

Tanzania

* Achieved average gross daily gas production for the third quarter of 34

MMscf/d down from 51 MMscf/d during Q2 2016. Contributing to the production

decline from Q2 was the suspension of operations at the Symbion gas-fired

power plant as a result of a dispute with the Tanzania Government, overhauls

and commissioning of gas turbines at Ubungo II and Kinyerezi I power

stations, and allocation of gas demand to industry competitors at the Songo

Songo gas processing facility. The year-to-date average gross daily

production is 44 MMscf/d

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

Manzi Bay was ongoing during Q3 2016 with commissioning and full operations

expected in the coming months

* Potential increase in industrial consumer demand includes supplying the

Dangote cement plant (30-40 MMscf/d) and resumption of operations at the

Symbion power plant (20 MMscf/d)

Mozambique

* Engaged a third-party consulting firm to reprocess 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 data. This survey will further Wentworth's ability to identify a

suitable appraisal location for an appraisal well in 2018

* Ongoing analysis of existing seismic and well data in Mozambique and

Tanzania to further our understanding of the regional Cretaceous geologic

section

* Once the estimated cost of the new 2D seismic survey and preliminary cost of

an appraisal well are determined, it is the Company's intention to secure an

industry partner prior to commencing further capital activity associated

with the appraisal program

Geoff Bury, Managing Director, commented:

"Q3 2016 gas sales volumes were impacted by a combination of factors that were

primarily influenced by contractual issues beyond the control of the Mnazi Bay

joint venture partners. We anticipate base demand for the remainder of 2016 and

all of 2017 to be between 40 and 50 MMscf/d with possible significant increases

originating from gas sales to industrial consumers and resumption of operations

at the idle gas-fired Symbion power generation plant.

I am also pleased that progress continues to be made to bolster the balance

sheet by looking to refinance our existing debt facilities and expand the debt

capacity to provide further financial flexibility going forward.  We continue to

feel confident in the future build up in demand; as the new power plants,

Kinyerezi-1 expansion and Kinyerezi II, are under construction and expected to

be commissioned and operational during 2018, which coupled with increased

industrial demand, provides exceptional long-term potential for the Company."

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

held the same day at 06:00 MST (Calgary) / 13:00 GMT (London) / 14:00 CET

(Oslo).  Call in numbers:

International/ United Kingdom Dial In: +44 (0)20 7026 5967

Canada: +1 647 794 1827

Norway: +47 2350 0296

United States: +1 719 457 1036

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

The Wentworth Resources confirmation code is: 1690174.

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

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

Tom Hufton

Financial Statements

The following primary statements have been extracted from the Q3 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

September 30, December 31,

2016 2015

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

ASSETS

Current assets

Cash and cash equivalents 3,728 2,746

Trade and other receivables 6,144 3,253

Prepayments, deposits and advances to partners 261 841

Current portion of long-term receivables 12,020 18,190

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

22,153 25,030

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

Non-current assets

Long-term receivables 19,731 18,897

Exploration and evaluation assets 44,803 43,141

Property, plant and equipment 94,159 95,168

Deferred tax asset 31,266 34,341

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

189,959 191,547

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

Total assets 212,112 216,577

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

LIABILITIES

Current liabilities

Trade and other payables 10,894 6,269

Current portion of long-term loans 8,593 5,270

Current portion of other liability 1,072 1,508

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

20,559 13,047

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

Non-current liabilities

Long-term loans 12,906 20,512

Other liability 1,321 1,634

Decommissioning provision 1,114 973

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

15,341 23,119

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

Equity

Share capital 411,493 411,493

Equity reserve 26,154 25,683

Accumulated deficit (261,435) (256,765)

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

176,212 180,411

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

Total liabilities and equity 212,112 216,577

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

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,

2016 2015 2016 2015

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

Total revenue 2,384 972 9,020 1,536

Operating expenses

Production and operating (778) (752) (2,448) (2,645)

General and (1,065) (1,479) (4,133) (4,332)

administrative

Depreciation and (832) (434) (3,135) (662)

depletion

Share based compensation (107) (136) (471) (594)

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

Loss from operating (398) (1829) (1,167) (6,697)

activities

Finance income 1,463 1,205 3,802 3,899

Finance costs (1,960) (625) (4,230) (2,979)

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

Loss before tax (895) (1,249) (1,595) (5,777)

Deferred tax expense (2,696) - (3,075) -

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

Net loss and (3,591) (1,249) (4,670) (5,777)

comprehensive loss

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

Net loss per ordinary

share

Basic and diluted (0.02) (0.01) (0.03) (0.04)

(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 - - - (5,777) (5,777)

comprehensive

loss

Share based - - 594 - 594

compensation

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

capital

Share issue - (371) - - (371)

costs

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

Balance at 169,534,969 411,493 25,510 (289,576) 147,427

September

30, 2015

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

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

December

31, 2015

Net loss and - - - (4,670) (4,670)

comprehensive

loss

Share based - - 471 - 471

compensation

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

Balance at 169,534,969 411,493 26,154 (261,435) 176,212

September

30, 2016

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

WENTWORTH RESOURCES LIMITED

Unaudited Condensed Consolidated Interim Statement of Cash Flows

United States $000s, unless otherwise stated

Three months ended Nine months ended

September 30, September 30,

2016 2015 2016 2015

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

Operating activities

Net loss for the period (3,591) (1,249) (4,670) (5,777)

Adjustments for:

Depreciation and 832 434 3,135 662

depletion

Finance costs/(income), 497 (580) 428 (920)

net

Deferred tax expense 2,696 - 3,075 -

Share based compensation 107 136 471 594

Change in non-cash (108) (1,855) (1,135) 523

working capital

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

Net cash generated 433 (3,114) 1,304 (4,918)

from/(utilized in)

operating activities

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

Investing activities

Acquisitions of (541) (3,834) (1,635) (10,986)

evaluation and

exploration assets

Acquisitions of property, - (4,834) (9) (12,234)

plant and equipment

Reductions of/(additions 1,905 (168) 8,294 (1,672)

to) long-term receivable

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

Net cash from/(used in) 1,364 (8,836) 6,650 (24,892)

investing activities

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

Financing activities

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

net of issue costs

Repayment of long-term (3,333) - (4,333) -

loan

Proceeds from long-term - 5,161 - 20,000

loan

Interest paid (835) (421) (1,859) (663)

Payment of other (186) - (780) -

liability

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

Net cash (used in)/from (4,354) 12,008 (6,972) 26,605

financing activities

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

Net change in cash and (2,557) 58 982 (3,205)

cash equivalents

Cash and cash 6,285 2,224 2,746 5,487

equivalents, beginning of

the period

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

Cash and cash 3,728 2,282 3,728 2,282

equivalents, 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.