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| | September 13, 2005
Wentworth Energy Secures Up To $4 Million Line Of Credit
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| | Wentworth Energy, Inc. (PINK SHEETS:WNWG) announced today that it has closed on a $1 Million working capital line of credit (LOC) from Coach Capital LLC. The terms of the LOC enable the Company to increase the funds available to $4 Million based on the achievement of mutually agreed performance criteria.
"Today's announcement marks an important milestone as we continue to transform the company from early stage to a viable junior energy producer," said John Punzo, Chairman and CEO, Wentworth Energy, Inc. "It is very difficult these days to secure traditional bank financing for a young company such as Wentworth Energy, and Coach Capital's eagerness to work with us speaks volumes for their confidence in our business plan and prospects."
The LOC is for three years with advances secured by promissory notes. At the option of the lender the loan can be converted into shares of Wentworth Energy at a price of $0.90 per share on the first $1 Million. Any funds over $1 Million are convertible at 75 percent of the five-day bid price proceeding the draw down of funds with a floor price of $0.90 per share. The interest rate on advances is 10 percent, calculated and payable annually, with an additional loan fee of two percent deducted from each advance of funds. A finders' fee of 100,000 common shares was paid to a third party on the completion of this transaction.
Gord McDougall, President of Wentworth Energy states, "Coach Capital is an ideal partner to help finance Wentworth's growth and the company's working capital needs, as we develop our oil and gas prospects throughout the Country."
About Wentworth Energy, Inc.
Located in Forth Worth, Texas, Wentworth Energy, Inc. is a diversified energy company focused on the responsible development of America's natural resources while providing maximum shareholder value. Wentworth Energy will apply innovative technologies towards the discovery and development of a diverse portfolio of high value, low risk energy projects such as the Company's opportunities in the Texas Barnett Shale gas play, the prolific oil and gas fields of the Gulf Coast, and the oil sands of eastern Utah. Wentworth Energy trades under the ticker symbol WNWG. For more information on the Company visit www.wentworthenergy.com
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Crosscheck Capital
Alex Johnston
Investor Relations
480-614-2088
Fax: 480-614-2089
info@crosscheckcapital.com
OR
Corporate Offices:
Wentworth Energy, Inc.
Toll Free: 877-329-8388
Fax: 817-288-0983
www.wentworthenergy.com |
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| | You can view the Next News Releases item: Wed Oct 5, 2005, Wentworth Energy Acquires Additional Texas Oil and Gas Leases
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