Half Yearly Report

RNS Number : 4737D

Westmount Energy Limited

23 March 2011

 



23 March 2011

Westmount Energy Limited

Interim results to 31 December 2010

CHAIRMAN'S REVIEW

I last wrote to you in December 2010 when we were planning to make a further capital repayment of 45p per share. You will have received this in mid February of this year and together with the two previous capital repayments make a total of 160p since the shares were originally floated in 1995 at 15p per share.

There has been little change in our portfolio since my letter on the 23^rd December. We continue to hold 2.45million shares in Desire Petroleum plc (Desire), 1.5million shares in Sterling Energy Plc (Sterling) and 1.million Argos Resources Limited (Argos) and in respect of each I can advise the following.

Desire

Improved Prospects for the Falkland Basin.

Rockhopper Exploration Plc (Rockhopper) has announced this week the result of their appraisal well drilled to investigate the reservoir presence and oil column adjacent to their Sea Lion discovery announced in 2010.

The well successfully flowed oil in the well bore and the drill data is now being evaluated. Rockhopper believe the result will significantly increase the potential for a commercial discovery in the Falkland basin, and are now considering further extending their drilling campaign beyond the three additional wells already contracted for with the Ocean Guardian Rig, which was announced last week

The rig will now move from the Rockhopper well to commence drilling Desire's Ninky prospect, its last remaining well to be drilled to in their present campaign. There is thus a minimum of a further six months of activity in the area and your board will be assessing its investment as further information becomes available.

Sterling

The drilling in Kurdistan has encountered geological problems with the result the well has been sidetracked and will re-drill to 3,300 metres. Results are expected in the second quarter of 2011. Your board continues to assess our holding and will make a decision on its future once the current drill results are announced

Argos Resources

Argos are currently conducting their seismic survey of their licence area and this should be completed in the second half of this year. Based on these results Argos will decide whether to contract for a rig to drill one or more exploration wells.

The Future

There has been no change to our agreed strategy to make disposals as and when the opportunity occurs with a view to returning further capital to our Shareholders and we will also pursue other opportunities to maximise Shareholder value.

Mervyn Bradlow

Chairman

23 March 2011

CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2010
(Expressed in United Kingdom Sterling)
							Six months ended						Six months ended					Year ended
							31 Dec  2010						31 Dec 2009					30 June 2010
							(unaudited)						(audited)					(audited)
							£						£					£
Realised gain on disposal of investments							1,466,481						137,174					1,612,003
Unrealised (loss)/gain on financial assets at fair value through  profit or loss							(2,880,250)						4,209,624					3,046,569
Administration  expenses							(175,909)						(141,890)					(333,784)
Operating (loss)/profit							(1,589,678)						4,204,908					(4,324,788)
Interest receivable							3,275						1,299					3,703
(Loss)/profit before tax							(1,586,403)						4,206,207					4,328,491
Taxation							-						-					-
Comprehensive (loss)/profit for the period							(1,586,403)						4,206,207					4,328,491
Basic (loss)/gain per share (pence)							(22.73)						60.23					62.01
Diluted (loss)/gain per share (pence)							(21.46)						55.17					58.76
	The Company had no items of other comprehensive income during the period.

CONDENSED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2010
(Expressed in United Kingdom Sterling)
					Six months ended			Six months ended			Year ended
					31 Dec  2010			31 Dec  2009			30 June 2010
				Notes	(unaudited)			(audited)			(audited)
					£			£			£
ASSETS
Non current assets
	Financial assets at fair value through profit and loss   2				3,012,375			6,951,513			5,485,350
Current assets
	Trade receivables				4,754			4,882			7,015
	Due from brokers				-			627,540			-
	Cash and cash equivalents				3,450,124			219,101			2,515,599
					3,454,878			851,523			2,522,614
Total assets					6,467,253			7,803,036			8,007,964
LIABILITIES AND EQUITY
Current liabilities
	Trade and other payables				234,692			149,021			210,507
EQUITY
	Share Capital				1,396,060			1,396,060			1,396,060
	Share Premium Account				261,682			261,682			261,682
	Share Option Account				298,717			256,052			277,210
	Profit and Loss Account				4,276,102			5,740,221			5,862,505
Total  equity					6,232,561			7,654,015			7,797,457
Total liabilities and equity					6,467,253			7,803,036			8,007,964

CONDENSED STATEMENT OF CHANGES IN EQUITY
(Expressed in United Kingdom Sterling)
			Share capital		Share premium		Share option		Retained		Total equity
			Account		Account		Account		Earnings
			£		£		£		£		£
As at 1 July 2009			1,396,060		261,682		244,363		1,534,014		3,436,119
Total comprehensive income
Profit for the period ended 31 December 2009			-		-		-		4,206,207		4,206,207
Transaction with owners
Costs of share options			-		-		11,689		-		11,689
			-		-		11,689		-		11,689
At 31 December 2009			1,396,060		261,682		256,052		5,740,221		7,564,015
Total comprehensive income
Profit for the period ended 30 June 2010				-	-		-		122,284		122,284
Transaction with owners
Cost of share options			-		-		21,158			-	21,158
			-		-		21,158		-		21,158
At 30 June 2010			1,396,060		261,682		277,210		5,862,505		7,797,457
Total comprehensive income
Loss for the period ended 31 December 2010			-		-		-		(1,586,403)		(1,586,403)
Transaction with owners
Cost of share options			-		-		21,507		-		21,507
			-		-		21,507		-		21,507
At 31 December 2010			1,396,060		261,682		298,717		4,276,102		6,232,561

CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2010
(Expressed in United Kingdom Sterling)
					Six months ended			Six months ended			Year ended
					31 Dec  2010			31 Dec  2009			30 June 2010
					(unaudited)			(audited)			(audited)
				Notes	£			£			£
Net cash outflows from  operating activities				1	(127,956)			(775,438)			(259,283)
Purchase of investments					(1,024,785)			(1,468,924)			(1,874,656)
Sale of investments					2,083,991			1,588,508			3,772,179
Interest received					3,275			1,299			3,703
Net cash generated from investing activities					1,062,481			120,883			1,901,226
Net increase/(decrease) in cash and cash equivalents					934,525			(654,555)			1,641,943
Cash and cash equivalents at the beginning of the period					2,515,599			873,656			873,656
Cash and cash equivalents at the end of the period					3,450,124			219,101			2,515,599

NOTES TO THE UNAUDITED INTERIM RESULTS
FOR THE PERIOD ENDING 31 DECEMBER 2010
1	Cash flow statement
	Reconciliation of net cash flow from the operating activities
					Six months ended			Six months ended			Year ended
					31 Dec  2010			31 Dec  2009			30 June 2010
					(unaudited)			(audited)			(audited)
	Total comprehensive (loss)/profit for the period				(1,586,403)			4,206,207			4,328,491
	Adjustment for interest income				(3,275)			(1,299)			(3,703)
	Adjustment for net loss/(gain) on investments at fair value through profit or loss				2,880,250			(4,209,624)			(3,046,569)
	Adjustment for costs attributable to share re options				21,507			11,689			32,846
	Adjustments for realised gains on investments at fair value through profit or loss				(1,466,481)			(137,174)			(1,612,003)
	Dreasece/(increase) in prepayments and accrued income				2,261			(621,881)			3,525
	Increase/(decrease) in creditors and accrued expenses				24,185			(23,356)			38,130
	Net cash (outflow) from operating activities				(127,956)			(775,438)			(259,283)
2	Investments
					Six months ended			Six months ended			Year ended
					31 Dec  2010			31 Dec  2009			30 June 2010
					(unaudited)			(audited)			(audited)
					£			£			£
	Desire PLC, at market value				1,217,625			4,416,000			3,306,600
	Cost, 2.55 million shares				1,115,171			1,149,501			1,080,826
	(31 December 2009: 4.8million, 30 June 2010: 3.674 million shares)
	Sterling Energy, at market value				1,263,750			2,535,513			2,178,750
	Cost, 1.5 million shares				2,589,192			2,823,625			2,589,192
	(31 Dec 2009: 1.636 million, 30 June 2010: 1.5 million shares)
	Argos Resources Limited, at market value				531,000			-			-
	Cost, 1.2 million shares				372,930			-			-
	(30 June 2010: nil)
		Total market value			3,012,375			6,951,513			5,485,350
		Total cost			4,077,293			3,973,126			3,670,018
		Current year movement			(1,064,918)			2,978,387			1,815,332
		Reverse prior year FV adjustment			(1,815,332)			1,231,237			1,231,237
		Current period income statement impact			(2,880,250)			4,209,624			3,046,569

Contacts

Paul R. Anderson, Westmount Energy Limited                                Tel [phone]

Elizabeth Bowman, Nomad and Broker, Cenkos Securities plc            Tel [phone]

 

END

 

 

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