Wentworth Energy, Inc.
OTC Bulletin Board : WNWG

Wentworth Energy, Inc.

August 10, 2006 08:30 ET

Wentworth Energy Updates East Texas Acquisition and Plan for 27,557-Acre Mineral Block

Management Team to Commence Work Program on Minerals

PALESTINE, TEXAS--(CCNMatthews - Aug. 10, 2006) - Wentworth Energy, Inc. (OTCBB:WNWG) reported further details on its acquisition of a 27,557-acre mineral block in East Texas and Barnico Drilling, Inc., a Texas-based oil and gas drilling services company. The minerals and Barnico were acquired following the completion of a $32.3 million institutional private placement. The $32,350,000 financing consists of 9.15% convertible secured notes due July 25, 2009. The notes are convertible into 23,107,143 shares of the Company's common stock at a conversion price of $1.40 per share. The investors also received warrants to purchase up to 46,214,286 shares of common stock at an exercise price of $1.40 per share. These warrants are valid for five years, and if exercised, would result in an additional $64.7 million funding for a total combined financing of $97 million.

Wentworth Energy is also pleased to announce that a work program is set to commence on the Company's 27,557-acre mineral block in Anderson and Freestone Counties of East Texas. The Company reports that it is planning to commence drilling several identified prospects on a 5,000-acre section of the Freestone County minerals over the next several weeks.

"Our initial program will focus on expanding existing Woodbine formation and developing behind pipe pay on two wells we have on the minerals," said Mike Studdard, who will become President of Wentworth Energy. "We will also be developing offsets to the current Rodessa production that is adjacent to our minerals, and attempt to develop low risk reserves, offsetting the Michael Birch, BETO, and Red Lake fields."

The mineral block is on trend with the three most active areas of East Texas, the Bossier Sand, Cotton Valley Lime, and the Cotton Valley Pinnacle Reef Trend. Activity within these trends has been high for the past five years and is projected to continue.

In addition to these highly active trends, the minerals are favorably situated for the traditional "tried and true" formations of the Woodbine, Rodessa/Pettit and Travis Peak. Opportunities exist on the minerals to exploit these shallower formations to develop cash flow streams to sustain future operations.

The minerals are significantly underdeveloped. For example, seven wells on the property produce from the Cotton Valley Consolidated reservoir within Nan-Su-Gail Field. In May of 2004, the spacing for the Cotton Valley was reduced from 640 acres to 40 acres. This will allow additional wells to be drilled offsetting the current producers. Currently, 43 potential in-fill locations have been identified for drilling. Prospect mapping is currently underway and has identified several high potential prospects slated for development in the near future. Based on extensive analysis of the mineral block over the past several months, Wentworth Energy believes the property could accommodate over 200 oil and gas wells over the next 10 years.

Wentworth Energy's development of the minerals will be led by Michael (Mike) Studdard, a professional landman and seismic exploration specialist; Dr. Tom Temples, Ph.D, a petroleum geologist and registered environmental manager with over 30 years of experience in exploration, development and management of petroleum ventures in North America; and George Barnes, an East Texas O&G drilling expert, with over 25 years of drilling operations experience with Barnico Drilling, which was recently acquired by Wentworth Energy. Both Barnes and Studdard will be joining the Company's Board of Directors.

"The new members of the management team have a proven record of identifying high-impact targets which will be critical in the initial stages of Wentworth's development of the mineral block," said John Punzo, Wentworth Energy's Chairman and CEO. "We believe that the minerals are significantly underdeveloped, and with our new additions to the management team on board we will have the technical and drilling expertise to maximize returns for our shareholders."

About Wentworth Energy, Inc.

Wentworth Energy, Inc. is a diversified energy company focused on the responsible development of America's natural resources while maximizing shareholder value. Wentworth Energy applies innovative technologies toward the discovery and development of a diverse portfolio of high-value, low-risk energy projects in North America, including the oil and gas fields of East Texas and the Gulf Coast. Wentworth Energy trades under the ticker symbol WNWG. For more information on the Company visit www.wentworthenergy.com.

This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects", "projects", "plans", and certain of the other foregoing statements may be deemed "forward-looking statements". Although Wentworth Energy believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the drilling of oil and natural gas wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil and natural gas drilling and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and gas prices and other risk factors.


Contact Information