TOWER RESOURCES PLC — Interim / Quarterly Report 2018

Aug 16, 2018

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

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

PRESS RELEASE

16 August 2018

Wentworth Resources Limited

("Wentworth" or the "Company")

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 2018.

The following should be read in conjunction with the Q2 2018 Management

Discussion and Analysis and Financial Statements which are available on the

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

Corporate

* Wentworth's share of Tanzanian Proved + Probable (2P) reserves valued at

$159.6 million (after-tax NPV10) on 2P reserves of 115.1 Bscf, as at

December 31, 2017 and independently verified by RPS;

* Company continues to progress its Canada to UK re-domicile and Oslo Børs

delisting plans;

* UK based management team in place following relocation of corporate

headquarters from Calgary, Canada to London, UK. CFO Katherine Roe appointed

April 1, 2018; CEO Eskil Jersing appointed June 25, 2018.

Financial

* Achieved milestone Mnazi Bay gas sales revenue of $10.79 million, 112%

higher compared to H1 2017 of $5.10 million;

* Improved EBITDA by 229% to $4.18 million compared to H1 2017;

* Net loss of $6.5 million (H1 2017: $1.66 million), including a non-cash

deferred tax expense of $8.68 million;

* Cash and cash equivalents on hand of $4.04 million (December 2017: $3.75

million) as at June 30, 2018;

* Working capital of $15.45 million (December 2017: $15.14 million);

* Reduced outstanding long-term loans by $2.67 million during the first half

of 2018;

* Carrying value of long-term loans $13.11 million (December 2017: $15.90

million);

* Development capital expenditures of $0.69 million on field infrastructure

(tie-in) improvements in the Mnazi Bay Concession in Tanzania;

* Exploration capital expenditures of $0.98 million on the Tembo Appraisal

License in Mozambique;

* G&A expense of $5.15 million including non-recurring expenses $2.92 million

and recurring G&A of $2.23 million (H1 2017: $2.01 million);

* Non-recurring expenses includes, management re-structuring costs of $0.83

million comprising Calgary employee severance and travel expenses related to

corporate re-structuring; redomicile costs of $0.34 million comprising

consultancy, legal and professional charges and; Tanzanian tax assessments

of $1.75 million for the years of 2013 to 2016.

Operational

Tanzania

* Average gross daily gas production for the period increased 115% to 79.3

MMscf/d from 36.9 MMscf/d in H1 2017; above current annual 2018 guidance of

65-75 MMscf/d.

* Exited H1 2018 with a new high daily gas production rate of 89 MMscf/d;

* Production ramp up due to Kinyerezi-I and Ubungo-II power stations operating

at near full capacity, commissioning of the Kinyerezi-II gas-fired power

station during Q4 2017, increasing growth in demand from Industrial

customers and lower quantities of gas supplied by industry competitors;

* Low operating expense costs of $ 0.43 / Mscf (H1 2017: $1.16 / Mscf)

leveraging increased production volumes;

* Received total cash payments of $12.97 million from gas sales and recovery

of long-term government receivables during the first half of 2018;

* Regular monthly payments for gas sales continue to be received. As at June

30, 2018 six invoices for gas sales to TPDC were outstanding, with the

increase in receivables being accounted for by the increase in gas sales in

the outstanding months. Post June 30, 2018, TPDC has paid three invoices.

Mozambique

* A 12-month extension of the Tembo Appraisal License was granted by Instituto

Nacional de Petroleo ("INP") on June 16, 2018;

* During the first six months of 2018 above ground security continued to be a

concern, especially in the Mocimboa da Praia and Palma regions. The Company

continues to monitor the situation;

* Wentworth continues to seek a risk sharing partner, whilst in parallel

advancing its technical studies, with a focus on commercial and monetisation

options. Work continues on a subsurface review on materiality thresholds,

reservoir properties and economic flow rate potential.

Eskil Jersing, Chief Executive Officer, commented:

"The first half of 2018 has seen Wentworth make material progress on Mnazi Bay

Production growth, receipt of revenues and long term receivables, deleveraging

of our balance sheet and redomicile of the Company to the UK. In particular, we

have exited Q2 2018 with milestone production of 89 MMcf/d on Mnazi bay.

Further, we have fully transitioned the Management team from Calgary to the UK

and continue to make strides towards a simpler, cheaper, efficient and more

robust platform for growth.

We have a strong and empowered team across the Company, all working diligently

on maximising the value of our assets and towards a leaner operating model. I

look forward to continuing  to help unlock the latent value in our core Mnazi

Bay asset and sharing progress on our path to value with all our shareholders."

Enquiries:  Eskil Jersing, eskil.jersing@wentworthresources.com

Wentworth Chief Executive +44 7717 847623

Officer

Katherine Roe, katherine.roe@wentworthresources.com

Chief Financial +44 7841 087 230

Officer

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

Europe Limited and Broker (UK)

Callum Stewart

Ashton Clanfield

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

Hugh Sanderson

Jonathan Wright

Peel Hunt LLP Broker (UK) +44 (0) 20 7418 8900

Richard Crichton

Ross Allister

FTI Consulting Communications wentworth@fticonsulting.com

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

Sara Powell

Molly Steward

Financial Statements

The following primary statements have been extracted from the H1 2018 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,

2018 2017

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

ASSETS

Current assets

Cash and cash equivalents 4,043 3,750

Trade and other receivables 20,591 13,322

Prepayments and deposits 204 191

TPDC receivables 8,704 15,550

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

33,542 32,813

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

Non-current assets

Tanzania Government receivables 4,959 4,959

Exploration and evaluation assets 48,903 47,921

Property, plant and equipment 87,804 90,336

Deferred tax asset 22,073 30,751

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

163,739 173,967

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

Total assets 197,281 206,780

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

LIABILITIES

Current liabilities

Trade and other payables 6,011 5,726

Overdraft credit facility 2,500 2,500

Current portion of long-term loans 7,936 7,260

Other liability 1,646 2,189

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

18,093 17,675

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

Non-current liabilities

Long-term loans 5,170 8,636

Decommissioning provision 917 865

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

6,087 9,501

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

Equity

Share capital 416,426 416,426

Equity reserve 26,516 26,490

Accumulated deficit (269,841) (263,312)

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

173,101 179,604

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

Total liabilities and equity 197,281 206,780

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

WENTWORTH RESOURCES LIMITED

Unaudited Condensed Consolidated Interim Statement of Comprehensive Loss

United States $000s, unless otherwise stated

Six months ended June 30,

2018 2017

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

Total revenue 10,792 5,096

Operating expenses

Production and operating (1,470) (1,813)

General and administrative (2,228) (2,014)

Tanzanian withholding tax costs (1,750) -

Management restructuring costs (832) -

Redomicile costs (335) -

Depreciation and depletion (3,220) (1,548)

Share based compensation (26) (145)

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

Profit/(loss) from operations 931 (424)

Finance income  2,053 991

Finance costs (671) (2,449)

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

Profit/(loss) before tax 2,313 (1,882)

Current tax expense (164) -

Deferred tax (expense)/recovery (8,678) 227

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

(8,842) 227

Net loss and comprehensive loss (6,529) (1,655)

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

Net loss per ordinary share

Basic and diluted (US$/share) (0.04) (0.01)

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

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 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 - - 145 - 145

compensation

Issued of share 16,953,496 5,527 - - 5,527

capital

Share issue costs, - (594) - - (594)

net of tax

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

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

30, 2017

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

Balance at 186,488,465 416,426 26,490 (262,566) 180,350

December 31, 2017

IFRS 9 - - - (746) (746)

transitional

adjustment

Net loss and - - - (6,529) (6,529)

comprehensive loss

Share based - - 26 - 26

compensation

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

Balance at June 186,488,465 416,426 26,516 (269,841) 173,101

30, 2018

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

WENTWORTH RESOURCES LIMITED

Unaudited Condensed Consolidated Interim Statement of Cash Flows

United States $000s, unless otherwise stated

Six months ended June

30,

2018 2017

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

Operating activities

Net loss for the year     (6,529) (1,655)

Adjustments for:

Depreciation and depletion     3,220 1,548

Finance (income)/costs, net     (1,382) 1,458

Deferred tax expense/(recovery)     8,678 (227)

Share based compensation     26 145

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

4,013 1,269

Change in non-cash working capital:

Trade and other receivables     (3,779) (1,503)

Prepayments and deposits     (14) 12

Trade and other payables     807 (360)

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

Net cash generated from/(utilized in) operating     1,027 (582)

activities

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

Investing activities

Additions to exploration and evaluation assets     (982) (950)

Additions to property, plant and equipment     (932) (391)

Reduction of long-term receivable     5,407 2,400

Proceeds from sale of office assets     3

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

Net cash from investing activities     3,496 1,059

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

Financing activities

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

Principal payments     (2,666) (2,014)

Debt restructuring fee     - (83)

Drawn on overdraft credit facility     - 558

Interest paid     (1,021) (966)

Payment of other liability     (543) (51)

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

Net cash (used in)/from financing activities     (4,230) 2,377

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

Net change in cash and cash equivalents     293 2,854

Cash and cash equivalents, beginning of the period     3,750 979

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

Cash and cash equivalents, end of the period     4,043 3,833

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

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.

Inside Information

The information contained within this announcement is deemed by Wentworth to

constitute inside information as stipulated under the Market Abuse Regulation

(EU) no. 596/2014 ("MAR"). On the publication of this announcement via a

Regulatory Information Service ("RIS"), this inside information is now

considered to be in the public domain.

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, 2017,

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.