Wentworth Energy denies default events connected to $24 million in notes issued in July 2006

By Sheri Kasprzak

New York, May 2 - Wentworth Energy, Inc. said it denies allegations that it defaulted on $24 million in senior convertible notes issued in July 2006.

The company said in an 8-K filed Wednesday with the Securities and Exchange Commission that it received notice from holders Camofi Master LDC; Highbridge International LLC; and Castlerigg Master Investments, Ltd. that they are demanding redemption of the notes in full.

The redemption price that the three holders claim is more than $33.6 million plus interest.

Wentworth received notices on April 26, April 30 and May 1 from its investors.

"The company is evaluating other consequences of the claimed defaults, which could include obligations to re-price existing warrants and issue additional warrants to these investors," said the company in the 8-K. "As previously reported, the company has been negotiating with the restructuring of these notes but has been unable to finalize that transaction.

"The company disagrees with certain aspects of the defaults asserted with the amounts claimed and with the imposition of various aspects of the penalty provisions asserted. The company does not intend to redeem the notes pursuant to the demands and does not presently have the funds to do so."

The notes were sold in principal of $30.85 million and are due July 25, 2009. The 9.15% notes are convertible at $1.40 each.

Located in Fort Worth, Texas, Wentworth is an oil and natural gas exploration and development company focused on projects in the Gulf Coast and eastern Texas.

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