TOWER RESOURCES PLC — Interim / Quarterly Report 2017

Aug 10, 2017

Wentworth Resources Limited : Q2 2017 and Half Year Financial Statements and MD&A

Wentworth Resources Limited : Q2 2017 and Half Year Financial Statements and MD&A

PRESS RELEASE

10 August 2017

Wentworth Resources Limited

("Wentworth" or the "Company")

Q2 2017 and Half Year 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 and six months ended 30 June 2017.

The following should be read in conjunction with the Q2 2017 Management

Discussion and Analysis and Financial Statements which are available on the

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

Corporate

* On 23 May 2017, the Company completed a private placement and issued

16,953,496 new common shares, for cash consideration of $0.326 (GBP 0.25 or

NOK 2.73) per share for total gross proceeds of $5.53 million (GBP4.2

million or NOK46.3 million).

Financial

* Gas sales revenue of $2.15 million for the quarter, compared to $2.94

million in Q1 2017 and $3.43 million in Q2 2016.    For the Half-year 2017

revenue was $5.10 million compared to $6.64 million in 2016.

* Net loss of $1.25 million and $1.66 million in Q2 and Half-year 2017

compared to net losses of $0.17 million and $1.08 in 2016 respectively.

* Capital expenditures of $0.61 million during Q2 and $1.3 million during

Half-year 2017 which compares to $2.16 million and $2.82 million in 2016

respectively.

* Cash and cash equivalents on hand of $3.83 million compared with $0.98

million on hand at December 31, 2016.

* Working capital of $9.08 million compared to $4.96 million at December

31, 2016.

* Drew $0.56 million on new overdraft credit facility for working capital

purposes during Q2 2017.

Operational

Tanzania

* Following 2016, a year in which gas demand varied significantly on a month

to month basis as existing government owned gas infrastructure was upgraded,

new infrastructure was commissioned and industry participation in the gas

supply and electrical power generation was established, gas demand started

to stabilise in the first half of 2017.

* Since the end of the wet season during Q2 2017 when hydro power generation

is at its annual peak, gas production volumes have increased substantially.

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

quarter of 30.7 MMscf/d and 36.9 MMscf/d during the first half of 2017, with

June 2017 production averaging 44.3 MMscf/d.  Gross gas sales for Q2 to date

have reached over 60 MMscf/d with management's forecast for the full year

2017 remaining within the guided range of 40 to 50 MMscf/d.

* Managed working capital with focus on petitioning purchasers of gas to

improve the timeliness of settling amounts owing and working with our two

main creditors, local banks and the operator of the Manzi Bay Concession, to

pay obligations upon settlement of receivables.

Mozambique

* Proceeding with plan to commence the drilling of an appraisal well on the

Tembo discovery next year, before acquiring additional seismic if necessary.

Consideration to acquiring additional seismic will be contingent upon the

results of the appraisal well.

* Continued work on reprocessing existing 2-D vibroseis seismic data,

completed Tembo-1 well analysis and continued mapping and interpretation of

all existing data with a view to selecting a well location.

* Continued the process of securing an industry partner to participate in the

appraisal programme in advance of drilling an appraisal well.

Geoff Bury, Managing Director, commented:

"Second quarter production was impacted by the rainy season during which hydro

power generation is used as a substitute for gas-fired power generation but

production rebounded to an average for July of 61 MMscf/d and we continue to

maintain an average production guidance for the year of between 40 and 50

MMscf/d.

The Company is effectively managing working capital through a period of slower

payments from its government agency customers TPDC and TANESCO. These efforts

include being fully engaged with Maurel & Prom and our local Tanzania based

banking institutions to effectively settle obligations as cash flows improve

through higher production volumes.

We continue to advance the process of securing a farm-in partner for the

drilling of an appraisal well in Mozambique and have received very positive

initial interest from industry. The Mozambique government has expressed their

support for the drilling of an appraisal well in 2018 in advance of the need to

acquire new seismic data over the gas discovery area. The Company is currently

determining a well location and expects to secure a farm-in partner before the

commencement of drilling operations."

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

held this morning at 01.30 MDT (Calgary) / 08.30 BST (London) / 09.30 CEST

(Oslo).

Call in numbers:

Please dial in 5-10 minutes prior to the start time and join the call by

referencing "Wentworth Q2

Results".

Participant Std International Dial-In: +44 (0) 1452 542303

Participant UK LocalCall Dial-In Number:

United Kingdom, LocalCall: 08448719456

Norway: 21033911

Participant FreeCall Dial in numbers:

Canada: 18669923610

France: 0805110467

Norway: 80016886

United States: 18663899778

-Ends-

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

GMP FirstEnergy 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 Q2 2017 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,

2017 2016

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

ASSETS

Current assets

Cash and cash equivalents 3,833 979

Trade and other receivables 9,624 6,699

Prepayments and deposits 175 187

Current portion of long-term receivables 11,454 12,283

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

25,086 20,148

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

Non-current assets

Long-term receivables 14,608 18,034

Exploration and evaluation assets 46,455 45,538

Property, plant and equipment 92,196 93,366

Deferred tax asset 31,372 31,145

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

184,631 188,083

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

Total assets 209,717 208,231

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

LIABILITIES

Current liabilities

Overdraft credit facility 558 -

Trade and other payables 8,234 8,675

Current portion of long-term loans 5,924 5,258

Current portion of other liability 1,290 1,260

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

16,006 15,193

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

Non-current liabilities

Long-term loans 12,528 15,254

Other liability 1,030 1,100

Decommissioning provision 819 773

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

14,377 17,127

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

Equity

Share capital 416,426 411,493

Equity reserve 26,420 26,275

Accumulated deficit (263,512) (261,857)

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

179,334 175,911

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

Total liabilities and equity 209,717 208,231

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

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,

2017 2016 2017 2016

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

Total revenue 2,152 3,430 5,096 6,636

Operating expenses

Production and operating (903) (773) (1,813) (1,670)

General and administrative (1,084) (1,556) (2,014) (3,068)

Depreciation and depletion (654) (1,189) (1,548) (2,303)

Share based compensation (37) (136) (145) (364)

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

Loss from operating (526) (224) (424) (769)

activities

Finance income 370 1,072 991 2,339

Finance costs (597) (1,062) (2,449) (2,270)

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

Loss before tax (753) (214) (1,882) (700)

Deferred tax (493) 40 227 (379)

recovery/(expense)

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

Net loss and comprehensive (1,246) (174) (1,655) (1,079)

loss

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

Net loss per ordinary share

Basic and diluted (0.01) - (0.01) (0.01)

(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

Note shares capital reserve deficit  equity

$ $ $ $

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

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 10 - - 364 - 364

compensation

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

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

30, 2016

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

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

December

31, 2016

Net loss and   - - - (1,655) (1,655)

comprehensive

loss

Share based 10 - - 145 - 145

compensation

Issue of share 11 16,953,496 5,527 - - 5,527

capital

Share issue 11 - (594) - - (594)

costs, net of

tax

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

Balance at June   186,488,465 416,426 26,420 (263,512) 179,334

30, 2017

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

WENTWORTH RESOURCES LIMITED

Unaudited Condensed Consolidated Interim Statement of Cash Flows

United States $000s, unless otherwise stated

Three months Six months

ended ended

June 30  June 30,

2017 2016 2017 2016

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

Operating activities

Net loss for the period (1,246) (174) (1,655) (1,079)

Adjustments for:

Depreciation and depletion 654 1,189 1,548 2,303

Finance costs/(income), net 227 (10) 1,458 (69)

Deferred tax expense/(recovery) 493 (40) (227) 379

Share based compensation 37 136 145 364

Change in non-cash working capital (827) (88) (1,851) (1,027)

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

Net cash (utilized in)/generated from

operating activities (662) 1,013 (582) 871

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

Investing activities

Additions to evaluation and exploration (506) - (950) -

assets

Additions to property, plant and equipment (174) (9) (391) (9)

Reductions of long-term receivable 1,411 2,699 2,400 5,295

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

Net cash from investing activities 731 2,690 1,059 5,286

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

Financing activities

Issue of share capital, net of issue costs 4,933 - 4,933 -

Principal payments (2,000) (1,000) (2,014) (1,000)

Debt restructuring fee - - (83) -

Draw on overdraft credit facility 558 - 558 -

Interest paid (182) (251) (966) (1,024)

Payment of other liability - (221) (51) (594)

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

Net cash from/ (used in) financing activities 3,309 (1,472) 2,377 (2,618)

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

Net change in cash and cash equivalents 3,378 2,231 2,854 3,539

Cash and cash equivalents, beginning of the 455 4,054 979 2,746

period

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

Cash and cash equivalents, end of the period 3,833 6,285 3,833 6,285

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

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, 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.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.