Wentworth Resources Limited : Q4 2011 Financial Statements and MD&A

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Wentworth Resources Limited

(“Wentworth” or “the Company”)

Q4 2011 Financial Statements and MDA

Wentworth Resources Limited (“Wentworth”), the AIM (AIM: WRL) and Oslo Stock Exchange (OSE: WRL) listed independent, East Africa-focused oil gas company, today releases its unaudited Fourth Quarter 2011 and Preliminary Year End 2011 Financial Statements and Management’s Discussion and Analysis.  

HIGHLIGHTS:

Mnazi Bay, Tanzania

  • During the 4th Quarter of 2011 

    • 2012 work programme agreed which includes the drilling of one exploration well, work-overs of three existing wells and the possibility of one additional exploration or appraisal well 

    • Secured a land rig for the drilling programme and commenced mobilization to the Ziwani-1 well site  

    • Continued discussions with the government regarding the potential to supply in excess of 200mmcf/d of natural gas through a proposed coastal pipeline  

  • Post balance sheet events  

    • Increased interest in the Mnazi Bay Concession and, subject to government approval of MP’s exercise of their pre-emptive rights: 

      • Wentworth will  have a 31.94% participation interest in petroleum operations (39.925% participation interest in exploration operations) in the Mnazi Bay concession 

      • MP will make a cash payment to Wentworth of approximately US$19 million plus MP will assume 60.075% of the contingent consideration due as part of the acquisition of Cove Energy’s participation interest 

      • Wentworth will continue to be carried through a majority of the exploration programme as it will pay approximately 12 percent of the drilling costs of the  Ziwani-1 well and the second exploration or appraisal well 

    • Spudded Ziwani-1 exploration well on 1 February 2012 

    • Entered into an agreement to dispose of the Company’s 18MW gas-fired power plant and associated assets to Tanzania Electric Supply Company (“TANESCO”) for cash consideration of $13.5 million 

Onshore Rovuma, Mozambique

  • Onshore Rovuma Basin partners committed to Phase 2 of the exploration programme  

Corporate

  • Successful listing on the AIM market of the London Stock Exchange on 25 October 2011  

Financial information

  • Cash balance of $9.1 million and working capital of $4.2 million at 31 December 2011  

OUTLOOK:

  • Drilling of the three well work overs will commence upon completion of drilling of the Ziwani-1 exploration well  

  • The seismic programme will commence Q2 2012 in the Onshore Rovuma Basin 

  • The Company will work with the Mnazi Bay Concession partners and the government to expedite the necessary documents to finalize the acquisition of additional interest in the Mnazi Bay Concession 

Geoff Bury, Managing Director, commented:

“We are pleased to report our Q4 financial results as well as providing shareholders with an update on our plans for 2012.  We have an extensive work programme, which we are very excited about, and is already underway in Mnazi Bay with the drilling of the Ziwani-1 well. The Company is also in a very strong financial position, as a result of recently announced transactions, and is fully funded to meet all of its budgeted 2012 capital and operating commitments. We  expect to exit the year with a positive cash position. We look forward to providing further updates as the year progresses.”

Enquiries:

About Wentworth Resources
Wentworth Resources is a publicly traded (AIM:WRL, OSE:WRL), independent oil gas company with:  natural gas production; midstream and downstream assets; a committed exploration and appraisal drilling programme; and large-scale gas monetisation programmes, all in the Rovuma Delta Basin of coastal southern Tanzania and northern Mozambique.

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, 2010, 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 announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Wentworth Resources Limited via Thomson Reuters ONE