Wentworth Energy, Inc.

Also, as of June 30, 2010, the Company had an account receivable of $13,050 due from an entity owned by a former President and director of the Company. The Company determined that it was overpaying overriding royalties to Roboco Energy, Inc., a corporation owned by Mike Studdard, the Company’s former President and former director, and the Barnes family. As a result, the Company recorded an account receivable for the overpayment. This overpayment will be deducted from future royalties.

On July 26, 2010, the Company entered into a settlement agreement with Mike Studdard and Roboco Energy for release and conveyance of 3% Overriding Royalty Interest in mineral properties in Anderson and Freestone Counties, TX.

We experienced net losses of $2.0 million and $1.5 million for the three-months ended June 30, 2010 and 2009 respectively. The increase in the net loss of $0.5 million was due to a decrease in the net loss from discontinued operations ($1.2 million) offset by a reduction in the unrealized gain on derivatives ($1.7 million).

We also experienced net losses of $3.2 million and $5.3 million for the six-months ended June 30, 2010 and 2009 respectively. The decrease in the net loss of $2.1 million was due principally to a decrease in the net loss from discontinued operations ($1.5 million), a decrease in operating expenses ($0.3 million) and by an increase in the unrealized gain on derivatives ($.3 million).

We had $1.4 million other expenses for the six months ended June 30, 2010, versus $3.1 million for the six months ended June 30, 2009. The finance and interest costs have been discussed above. In addition to the interest and finance costs discussed above, unrealized gains related to the change in the fair value of the derivative contract liability went from $0.5 million for the six months ended June 30, 2009 to $0.8 million for the six months ended June 30, 2010. The derivative liabilities relate to the fair value of the beneficial conversion feature of our convertible debentures and senior secured convertible notes issued in 2006, and the fair value of the related warrants. Under guidance from ASC 815, the Company is required to report the liability at fair value and record the fluctuation in the fair value to current operations.

The loss from discontinued operations went from $1.5 million for the six months ended June 30, 2009 to zero in for the six months ended June 30, 2010. The loss in 2009 relates to the sale of drilling equipment which we repossessed from CamTex Energy in March 2009.