Final Results

Westmount Energy Limited
12 November 2001




12 November 2001

                              PRESS RELEASE

                          WESTMOUNT ENERGY LIMITED

          PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2001


Westmount Energy Limited and its subsidiaries ('the group') today announces
its preliminary results for the year ended 30 June 2001, as follows:


  * Profits before taxation of £65,007 (2000: £200,982)


  * Turnover of £689,294 (2000: £357,843)


  * Basic (loss)/earnings per share of (0.80p) (2000: 0.91p)


  * Diluted (loss)/earnings per share of (0.80p) (2000: 0.90p)


  * The group's income is derived principally from its overriding royalty
    interest in the North Sea producing Buchan Oilfield and its overriding
    royalty and working interests in the Gulf of Mexico. (Income in 2000,
    included profits realised of £176,047 from the sale of investments).


  * The group owns 20 million fully paid ordinary shares in Fusion Oil & Gas
    plc ('Fusion') quoted on the Alternative Investment Market ('AIM'),
    representing 21.61% of Fusion's issued share capital. This investment
    provides the group with a substantial indirect interest in Fusion's
    projects offshore West Africa.


  * Through its investment of 5,844,830 shares in AIM quoted Desire
    Petroleum plc ('Desire'), representing 5.6% of the issued share capital of
    Desire, the group has an important continuing interest in oil exploration
    offshore the Falkland Islands.


  * The group owns 14.75% of the issued share capital of the unquoted
    Eclipse Energy Company Limited ('Eclipse'). Eclipse is now formulating a
    development plan for its first offshore power generation station,
    following the award of a licence in the East Irish Sea.


Commenting on the group's outlook, Mr Derek Williams, Chairman, stated:


'With the likely enhancement of the group's investment in Fusion from present
market value, the possibility of the fruition of plans for the resumption of
drilling offshore the Falkland Islands by Desire and the further progress
anticipated by Eclipse, the ensuing year should prove to be an active and
rewarding period for shareholders of the company.'



Contact:

Derek Williams         Chairman, Westmount Energy Limited
                       Tel: [phone]


Andrew Edwards         Investec Henderson Crosthwaite
                       Tel: [phone]


Paul Downes            Merlin Financial & Corporate Public Relations
Dominic Barreetto      Tel: [phone]





Copies of this Press Release will be available from the offices of Investec
Henderson Crosthwaite, 2 Gresham Street, London EC2V 7QP up to and including
29 November 2001.



Chairman's Review


Profits before taxation for the year ended 30 June 2001 (after making an
investment provision of £223,338) amounted to £65,007 (£109,282 loss after
taxation). This compares with profits before taxation of £200,982 (£121,149
profits after taxation) for the year ended 30 June 2000. Turnover, arising
mainly from the group's North Sea and Gulf of Mexico interests, is up to 
£689,294 from £357,843 for the previous year.



Trading has improved due to the higher oil and gas prices obtained and the
income from two further wells drilled in the Gulf of Mexico during the year.
The results for the year were achieved without the benefit received in the
previous year from profits of £176,047 arising from the sale of certain
investments.



It is disappointing that the excellent trading results were marred by the
provision that the Board has deemed prudent, against the long standing
investment in the Russian Econeft venture held through SL Energy Waste
Treatment Limited, due to the circumstances detailed in the Directors' Report.



The Board has continued its strategy of holding, in the group's portfolio of
assets, interests in oil and gas properties which provide sufficient cash flow
to cover the group's overheads, and at the same time have the potential for
enhancement of asset value. The main focus, however, remains in providing seed
capital to companies in the energy sector, prior to those companies being
brought to the stock market, which hold the possibility for considerable
capital growth on the funds invested.



The group's activities are currently spread over five major investments.
Through its wholly-owned subsidiaries, Westmount Petroleum UK Limited and
Westmount Resources, Inc., it receives cash flow as a result of income
arising, respectively, from its overriding royalty interests in the producing
Buchan Oilfield, North Sea and its overriding royalty and working interests in
producing oil and gas fields in the Gulf of Mexico and onshore Louisiana. In
addition, the group holds three seed capital investments for capital
appreciation. The investment in Fusion Oil & Gas plc ('Fusion') is held
through the company's wholly-owned subsidiary, Westmount Resources Limited and
the investments in Desire Petroleum plc ('Desire') and Eclipse Energy Company
Limited ('Eclipse') are held directly by the company. The shares of both
Fusion and Desire are traded on the AIM market. It is expected the shares of
Eclipse will be introduced to a stock market in due course. The combined
present value of these three investments is considerably in excess of the
carrying book values based on the market value of the shares held in Fusion
and Desire and the progress that has been made by Eclipse, which is at present
unquoted, as shown elsewhere in this review.



Set out below is further information on the group's investments:



United Kingdom - North Sea



The group owns an overriding royalty based upon 0.5% of oil won and saved from
Licence P241 in the central North Sea, including approximately 90% of the
producing Buchan Oilfield operated by Talisman Energy (UK) Limited ('Talisman').
Oil won and saved from the P241 area for the year ended 30 June 2001
totalled 1,904,929 barrels, compared with 2,298,425 barrels in the previous
financial year.



The technically innovative coiled tubing drilling project to sidetrack
existing wells B3 and B6 has continued, which is expected to boost production
from the field. Work on the B3 well has now been completed and progress is
being made on the B6 well, which is planned to finish in 2002. On the
successful completion of the whole programme, Talisman has estimated remaining
production for the field to be in the order of 30 million barrels, with
production continuing to the end of the present decade.



Outside of the Buchan Oilfield there are exploration prospects in the Licence
P241 area, which may possibly be drilled in the future.



North America - Gulf of Mexico and Onshore Louisiana



The group owns a 0.6167% overriding royalty on production from the South
Timbalier 176 Field (Block 162) offshore Louisiana in the Gulf of Mexico.
Income is received from BP Amoco, El Paso Production Company and Tri-Union
Development Corporation.

The group also owns a 0.375% overriding royalty in the College Point Field
located in St James Parish, Louisiana, operated by Linder Oil Company. Total
income received from these properties for the year ended 30 June 2001 was
US$227,186 compared with US$56,372 in the previous year, reflecting the
benefit received from 2 further wells drilled during the year in South
Timbalier.



In addition the group owns a working interest of 3.125% in the Eugene Island
area (Block 255), Gulf of Mexico, operated by Forest Oil Corporation. Total
production of gas for the year ended 30 June 2001 was approximately 3.3
billion cubic feet ('BCF') compared with approximately 4.0 BCF in the previous
year. Taking into account also oil production from the property, the total
gross income received by the group from this working interest for the year
under review, reflecting exceptionally high gas prices, was in excess of
US$550,000 compared with approximately, US$400,000 in the previous year.



Falkland Islands - South Atlantic



Since June 1996, the company has invested a total of £684,915 in the issued
share capital of Desire for which it acquired 7,329,830 ordinary shares.
Desire's shares were admitted to AIM on 17 April 1998, and from June 1998 the
company has realised £688,182 from the sale of 1,485,000 ordinary shares. This
has resulted in the return of all the funds invested along with a surplus cash
flow of £3,267. The company has taken to profits from the proceeds of the
shares sold, £328,781, £50,211 and £176,047, respectively, in the three
financial years ended 30 June 1998, 1999 and 2000, totalling £555,039. The
company has, therefore, retained 5,844,830 ordinary shares representing
approximately 5.6% of the present issued share capital of Desire, with a
carrying book value of £551,772, equivalent to approximately 9.4p for each
Desire share held. The highest and lowest middle market share prices recorded
for a Desire share on AIM in the financial year ended 30 June 2001 were 27.5p
and 14.75p. The middle market closing price on 6 November 2001 of a Desire
share was 13p. This shareholding provides the company with a significant
indirect investment in exploration of the North Falkland Basin.



Following the results of the Aljubarrota No.2 sidetrack well in the Lusitanian
Basin in Portugal, Desire has reported that the evident lack of good
reservoirs at accessible depths, combined with the high costs of drilling, has
substantially down-graded the prospects of discovering hydrocarbons in
commercial quantities. Desire has accordingly decided not to commit further
funds to the project and will now be concentrating all efforts on restarting
the drilling programme in the North Falkland Basin.



Desire holds licence interests in tranches C, D, F, I and L. Of the six wells
drilled offshore in the North Falkland Basin in 1998, five recorded oil, or
oil and gas, shows. The first phase of drilling has demonstrated that this
basin contains a working, hydrocarbon system. Desire has identified 8 major
prospects with a total, unrisked, recoverable-reserve potential exceeding 2
billion barrels of oil and is now actively pursuing farmout opportunities with
a view to bringing new partners into the project to finance a resumption of
drilling in the area.



West Africa



Since February 1999, the group has invested a total of £1,026,789 in the
issued share capital of Fusion. These investment funds were utilised partly
from the cash proceeds of sale of certain Desire shares, referred to elsewhere
in this review and partly from the proceeds of £500,000 arising from a share
placing of 2,000,000 new shares by the company at 25p in August 1999.
Following the admission of Fusion's shares to AIM on 28 September 2000, the
group owns 20,000,000 fully paid ordinary shares in Fusion representing 21.61%
of the issued share capital of that company at 30 June 2001. Accordingly, the
carrying value in the books of the group of this shareholding is equivalent to
approximately 5p for each Fusion share held. The highest and lowest middle
market share prices recorded for a Fusion share on AIM from 28 September 2000
to the end of the financial year ended 30 June 2001 were 76p and 27p. The
middle market closing price on 6 November 2001 of a Fusion share was 27p. This
investment in Fusion provides the group with a substantial indirect interest
in Fusion's exciting projects offshore West Africa.



Fusion holds interests in 8 exploration licences across 6 countries,
comprising Mauritania, the Gambia, Senegal, Guinea-Bissau, Cameroon and Gabon.
In the period April/July 2001, Fusion, along with its joint venture partners,
participated in its first drilling programme offshore Mauritania with Woodside
as operator, for which Fusion was free carried for its 6% interest under the
farmout arrangements with Woodside and Agip. This 2 well drilling programme
resulted in an oil discovery on Fusion's maiden well. The success of the first
well, Chinguetti-1, offshore Mauritania has the potential to open up a new oil
producing province. The second well, Courbine-1A ST, was a sub-commercial gas
discovery.

These first two wells are the beginning of what is likely to be a long running
exploration and appraisal programme offshore Mauritania, where Fusion has 6%
and 3% equity interests in two large production sharing contact areas. The
results of the Mauritania drilling campaign are significant in upgrading the
prospectivity of Fusion's acreage to the south in the Gambia, where Fusion has
100% equity and the Senegal/Guinea-Bissau blocks, Cheval Marin and Croix de
Sud, where Fusion has equity interests of 10% and 88%, respectively.



Chinguetti-1, drilled in 800 metres of water, was completed in May 2001 as an
oil and gas discovery, reaching a depth of 2,620 metres. The Chinguetti
prospect is an anticlinal feature overlying a salt dome. The well intersected
several oil bearing sandstones in the Tertiary primary objective over a 120
metre gross hydrocarbon column without encountering an oil water contact. A
shallower secondary objective contained gas bearing sandstones over a 7 metre
interval. Using a wireline sampling tool, 4 oil samples were recovered from
the primary objective sandstones. The oil gravity is in the range of 25-30
degrees API in line with pre-drill predictions. The Chinguetti-1 oil discovery
demonstrates, for the first time, that a fully functioning petroleum system
exists in the Mauritanian deepwater basin. There are several prospects within
a 20 kilometre radius of Chinguetti-1 which could probably be developed from
central infrastructure. This has the potential to significantly improve the
economics of field development.



Courbine-1A ST, drilled in 1,300 metres of water, was completed in July 2001
as a sub-commercial gas discovery. The well was drilled to a depth of 4,452
metres. The primary reservoir objective, between 3,800 metres and 4,000 metres
to test an Upper Cretaceous objective was interpreted to be water bearing with
minor hydrocarbon shows. Tertiary sandstones comprising a secondary reservoir
above 3,184 metres were interpreted to contain a 9 metre gas column. Although
not a commercial success the Courbine-1A ST well demonstrated that various key
elements of the petroleum system are in place. The information provided by
both wells will be critical in guiding future exploration drilling.



Fusion has reported that for 2002, subject to the approval of the Mauritania
joint venture, one or two appraisal wells are anticipated on the Chinguetti
structure to determine the extent of the oil accumulation and the quality of
the reservoir. In addition, one or two exploration wells are expected to be
drilled in the vicinity of Chinguetti to establish the potential for
additional reserves which could be developed from central infrastructure. It
is likely that this would be followed by an ongoing exploration programme to
test further prospects in the licence area.



Outside of its interests in Mauritania, Fusion has completed six seismic
exploration programmes in its other licence areas and in five of these surveys
it was the project operator. Fusion has reported that data from these surveys
is currently being evaluated and it has started discussions with possible
farmin partners to maintain the pace of exploration activity over its various
projects.



Eclipse Venture



After subscribing for 20% of the seed capital raised by Eclipse, by investing
£130,000 last year, the company holds 14.75% of the issued share capital of
Eclipse. Eclipse has developed an innovative power generation concept, whereby
power would be generated from stranded offshore gas reserves, integrated with
power generated from wind turbines in an offshore generating station, and then
exported as electricity by cable to the National grid. On 27 July 2001,
Eclipse with its partner Rolls-Royce Ventures Limited, was awarded by the
Department of Trade and Industry a gas production licence over blocks 113/28
and 113/29, 10 kilometres to the west of Walney Island, off Barrow-in-Furness,
Cumbria in the East Irish Sea. Eclipse will now be preparing a Field
Development Plan for its first project.



Outlook



With the likely enhancement of the group's investment in Fusion from present
market value, the possibility of the fruition of plans for the resumption of
drilling offshore the Falkland Islands by Desire and the further progress
anticipated by Eclipse, the ensuing year should prove to be an active and
rewarding period for shareholders of the company.




Derek G. Williams
Chairman
12 November 2001


REPORT OF THE DIRECTORS
TO THE MEMBERS OF WESTMOUNT ENERGY LIMITED


1.      The directors have pleasure in presenting the audited financial
statements of the company and of the group for the year ended 30 June 2001.

2.      The result for the year is set out on page 11 in the profit and loss
account.  The directors do not recommend the payment of a dividend in respect
of these accounts.

3.      The directors during the year were as follows:


         D G Williams (USA)
         P J Richardson
         M S D Yates

         Biographical Information:

         Derek G Williams, Chairman, age 70, a founding director of the
company, appointed 18 November 1992, has many years experience in the
international oil industry and is a chartered accountant.  He was appointed
to the board of Charterhall PLC in 1965 and became chairman and chief
executive in 1969, a position he held for seventeen years.  Charterhall was a
British independent oil company and a member of the consortium which
discovered the North Sea producing Buchan Oilfield in 1974.

         Charterhall was active in the UK offshore and onshore areas and in
the USA, Canada and Australia with offices in London, Denver, Calgary and
Melbourne.  Derek retired as chief executive of Charterhall in July 1986,
upon the change in control of Charterhall and left the board in July 1988.
Upon leaving Charterhall and until he joined the company in 1992, he acted as
an international petroleum consultant.  After living for several years in
Houston, he became a US citizen in March 1994.

         He was appointed a non-executive director of Fusion Oil & Gas NL in
April 1999 and a non-executive director of Fusion Oil & Gas plc in June 2000.

         Peter J Richardson, age 45, a Jersey resident, and a director of the
company since 25 June 1998, is a director of fund management and special
purpose vehicle administration companies.  Formally he was for six years
corporate trust manager of the Royal Bank of Scotland Trust Company (Jersey)
Limited and for the previous twenty years held senior positions with four
major international banks, including ten years in the role of trust officer
for clients and ten years in general banking and management.

         Marc S D Yates, age 41, a Jersey resident, and a director of the
company since 1 October 1998, is a partner in the Jersey based law firm,
Ogier & Le Masurier, and an advocate of the Royal Court of Jersey as well as
an English barrister of nineteen years standing.  He also holds a number of
public company directorships.

4.      The secretary of the company throughout the year was The Royal Bank
of Scotland Trust Company (Jersey) Limited.

5.      The principal activity of the company is, and continues to be,
investment holding and of the group, investment holding and investment in oil
and gas exploration and production.


6.      The directors and their families have the following interests in the
shares and options over shares of the company.

                   Ordinary shares of 10p each              Share options
                12 November    30 June   30 June   12 November   30 June 30 June
                       2001       2001      2000          2001      2001    2000
               
                                             

D G Williams(a)   1,510,000  1,510,000 1,610,000       250,000   250,000 250,000
P J Richardson            -          -         -       250,000   250,000 250,000
M S D Yates               -          -         -       250,000   250,000 250,000

         (a) Including non-beneficial holdings of 675,000 shares at 30 June
2001 (775,000 at 30 June 2000).

7.      At 12 November 2001 notification had been received of the following
holdings of more than 3% of the issued capital of the company:

                                                       Number        %

D G Williams                                        1,510,000    11.12
J Saville                                             705,000     5.19

8.      There are no service contracts with directors.  However, Ridge House
Resources Limited, a company in which D G Williams is interested is entitled to
a commission of 3% of profits arising from the group's current interest held
through Desire Petroleum plc and any future interests in the Falkland Islands.
During the year no transactions were made.

9.      The company is not resident in the United Kingdom and is, therefore,
not a close company within the meaning of the United Kingdom Income and
Corporation Taxes Act 1988.

10.     The movements in fixed assets are shown in notes 7 and 8 to the
financial statements on pages 22 to 24.  As referred to in note 8 of the
financial statements, due to the fact that the sale of the investment in SL
Energy Waste Treatment Limited to Eaglesham Limited is unlikely to proceed, the
investment is now being held as a fixed asset investment. The book value of the
investment which stood at £223,339, was equivalent to approximately 1.645p for
each Westmount 10p share in issue and 1.4% of the total value of investments
held as at 30 June 2001 after adding the surplus over cost and market prices of
the shares held in Desire Petroleum plc and Fusion Oil & Gas plc. The
investment was introduced by a former director of the company in 1994. It is
believed the interest in the Russian Econeft oil waste treatment venture,
represented by the investment may have been sold illegally in Russia to a third
party. The company has been informed by SL Energy Waste Treatment Limited that
it is pursuing the matter vigorously, in spite of practical difficulties of
taking action in Russia. The directors are also obtaining independent advice as
to what remedies are available. In the circumstances the directors have
considered it prudent to write the investment down to a carrying book value of
£1.

11.     At the annual general meeting on 11 December 2000 the authorised share
capital of the company was increased from £1,500,000 divided into 15,000,000
shares of 10p each to £2,000,000 divided into 20,000,000 shares of 10p each.

12.     It is group policy to settle all debts owing on a timely basis, taking
account of the credit period given by each supplier.  The group has few trade
creditors and the majority of year end credit was due to professional advisers.
  For this reason, the directors consider that the publication of the number of
creditor days would not provide meaningful information.

13.     Significant post balance sheet events are described in detail in the
chairman's review.

14.     Company law requires the directors to prepare financial statements
for each financial year which give a true and fair view of the state of
affairs of the company and of the group and of the profit or loss of the
group for that year.  In preparing these financial statements, the directors
are required to:

*       Select suitable accounting policies and then apply them
        consistently;
*       Make judgements and estimates that are reasonable and prudent;
*       State whether applicable accounting standards have been followed,
        subject to any material departures disclosed and explained in the       
        financial statements;
*       Prepare the financial statements on the going concern basis unless
        it is inappropriate to assume that the company will continue in         
         business.

         The directors are responsible for keeping proper accounting records
which disclose with reasonable accuracy at any time the financial position of
the company and of the group and to enable them to ensure that the financial
statements comply with the Companies (Jersey) Law 1991.  They are also
responsible for safeguarding the assets of the group and hence for taking
reasonable steps for the prevention and detection of fraud, error and non
compliance with laws and regulations.


15.     A resolution to re-appoint the auditors, Moore Stephens, and
authorising the directors to fix their remuneration will be submitted to the
forthcoming annual general meeting.


                                                  By Order of the Board

                                                  For and on behalf of
                                            The Royal Bank of Scotland Trust
                                                Company (Jersey) Limited


                                                     L M G Thebault

                                                        Secretary


PO Box 298
23-25 Broad Street
St Helier
Jersey
JE4 8TL
Channel Islands



12 November 2001


CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2001

(Expressed in United Kingdom Sterling)


                             Note                    2001                  2000
                                            £           £         £           £

Turnover                     2                   689,294               357,843
Operating costs                                 (115,285)              (97,285)
Operating profit before
administrative
expenses                                         574,009               260,558
Administrative expenses                         (299,575)             (244,571)
Net operating profit                             274,434                15,987

Interest receivable                   13,911                  8,948
Amount written off                  (223,338)                     -
investment
Profit on disposal of                      -                176,047
investments
                                                (209,427)              184,995

Net profit on ordinary
activities
before taxation              2,3                  65,007               200,982
Tax on net profit on
ordinary
activities                   5                  (174,289)              (79,833)
(Loss)/profit retained for                      (109,282)              121,149
the year

Basic (loss)/earnings per    6                    (0.80)p                 0.91p
share
Diluted (loss)/earnings per  6                    (0.80)p                 0.90p
share


Turnover and operating costs for 2001 and 2000 related wholly to continuing
activities.




CONSOLIDATED BALANCE SHEET
AT 30 JUNE 2001

(Expressed in United Kingdom Sterling)

                          Note                 2001                    2000
                                       £           £            £           £

FIXED ASSETS
Tangible fixed assets      7     142,199                 243,586
Investments                8   1,708,760                1,569,260

                                           1,850,959                1,812,846

CURRENT ASSETS

Investments                8          -                  223,339
Debtors                    9     51,134                  210,707
Cash at bank                    536,427                  221,356
                                587,561                  655,402
CREDITORS: amounts
falling due
within one year           10   (201,958)                (109,792)
NET CURRENT ASSETS                           385,603                  545,610


TOTAL ASSETS LESS CURRENT
LIABILITIES                                2,236,562                2,358,456




SHARE CAPITAL AND
RESERVES

Equity share capital      11               1,357,653                1,357,653
Share premium account     12                 555,127                  555,127
Profit and loss account   12                 323,782                  445,676


EQUITY SHAREHOLDERS'      13               2,236,562                2,358,456
FUNDS



These financial statements were approved by the Board of Directors on 12
November 2001


Director     D G WILLIAMS