Half Yearly Report

RNS Number : 4493T

Westmount Energy Limited

30 March 2016

 

Westmount Energy Limited

("Westmount" or the "Company")

Interim Results

The Company is pleased to announce its Interim Results for the six months ended 31 December 2015. A copy of the results is available on the Company's website, www.westmountenergy.com, and will be posted to shareholders shortly.

CHAIRMAN'S REVIEW

The period under review has been an active one for your Company.

Last December your Company successfully raised a total of £509,602 by way of an Open Offer to existing shareholders and a Placing with two new investors, Mr John Craven and Mr Dermot Corcoran. Following the Annual General Meeting on 11 December 2015, the share capital was also amended to Nil Par Value. The amendments to our share capital, addition to our working capital and strengthening of our shareholder base has provided a strong platform to enhance shareholder value going forward.

Since the period end the oil price has continued to be volatile, hitting lows in January not seen since 2003. More recently, the oil price has recovered from the lows and according to the International Energy Agency, the oil price may have bottomed out.  Opportunities are emerging as a result of distressed situations, divestments from medium and large oil and gas exploration and production companies and due to cut backs in exploration budgets. We are focusing on repositioning your Company as a niche exploration and production investor in the conventional oil and gas sector, focusing on value creation in the low price environment, utilising the distressed environment to re-house high quality assets and to position investors to benefit from a likely price upswing in the next two to five years.

We continue to identify and assess investment opportunities in line with the above strategy which may take time to emerge but I believe that our patience should be rewarded.

Portfolio

Your Company's portfolio of energy shares is mainly focused on the Falkland Islands. In spite of positive news events, valuations have suffered as a result of the poor oil price environment and negative sentiment in the sector. Your Company recorded a loss in the portfolio of £284,950 which arose mainly from market depreciation in our holding in Falkland Oil and Gas ("FOGL").

During the period, FOGL completed Drilling - 14/20-2 (Isobel-2 Re-drill) as an oil discovery and also completed an all share merger with Rockhopper Exploration plc ("Rockhopper") in early January 2016, resulting in a net holding of 358,142 shares in Rockhopper.

As a result, our new Rockhopper investment provides shareholders with exposure to the Sea Lion oil field development as well as its substantial cash balances and diversification by way of its Mediterranean E & P portfolio.

We continue to hold investments in Argos Resources Ltd and Sterling Energy which will be kept under review while we assess investment opportunities in line with our strategy. We look forward to updating investors with further developments when appropriate.

Gerard Walsh

Chairman

29 March 2016

Enquiries:-

Westmount Energy Limited             www.westmountenergy.com

David King, Director                             Tel: [phone]

Cenkos Securities plc, Nomad and Broker

Nicholas Wells / Elizabeth Bowman        Tel: [phone]

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 DECEMBER 2015

	Six months ended 31 Dec 2015 (unaudited) £		Six months ended 31 Dec 2014 (unaudited) £		Year ended 30 Jun 2015 (audited) £
Net loss on financial assets held at fair value through profit or loss	(284,950)		(30,685)		(95,485)
Administration expenses	(77,857)		(59,659)		(126,754)
Operating loss	(362,807)		(90,344)		(222,239)
Loss before tax	(362,807)		(90,344)		(222,239)
Tax	-		-		-
Comprehensive loss for the period / year	(362,807)		(90,344)		(222,239)
Basic loss per share (pence)	(0.02)		(0.92)		(2.26)
Diluted loss per share	(0.02)		(0.92)		(2.26)

All results are derived from continuing operations.

The Company had no items of other comprehensive income during the period / year.

CONDENSED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2015

	31 Dec 2015 (unaudited) £		31 Dec 2014 (unaudited) £		30 Jun 2015 (audited) £
ASSETS
Non-current assets
Financial assets at fair value through profit or loss	192,261		601,621		536,821
Current assets
Other receivables	9,451		1,522		9,721
Cash and cash equivalents	494,245		69,326		7,291
	503,696		70,848		17,012
Total assets	695,957		672,469		553,833
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables	27,089		53,283		31,760
EQUITY
Share capital	3,027,222		1,966,060		1,966,060
Share premium account	-		516,777		551,560
Share option account	349,906		349,906		349,906
Retained earnings	(2,708,260)		(2,213,557)		(2,345,453)
Total equity	668,868		619,186		522,073
Total liabilities and equity	695,957		672,469		553,833

CONDENSED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 DECEMBER 2015

	Share capital account £	Share premium account £	Share option account £	Retained earnings £	Total equity £
As at 1 July 2014	1,966,060	516,778	349,906	(2,123,214)	709,530
Total Comprehensive Income
Loss for the year ended 30 June 2015	-	-	-	(222,239)	(222,239)
Transactions with owners
Expired redemption of B shares not taken up	-	34,782	-	-	34,782
As at 30 June 2015	1,966,060	551,560	349,906	(2,345,453)	522,073
Total Comprehensive Income
Loss for the period ended 31 December 2015	-	-	-	(362,807)	(362,807)
Transactions with owners
Conversion to Nil Par Value Shares	551,560	(551,560)	-	-	-
Open offer at 0.04 per share	509,602	-	-	-	509,602
As at 31 December 2015	3,027,222	-	349,906	(2,708,260)	668,868

	Share capital account £	Share premium account £	Share option account £	Retained earnings £	Total equity £
As at 1 July 2013 as previously stated	1,966,060	492,103	293,427	(1,861,129)	890,461
Prior year adjustment	-	-	56,479	(56,479)	-
As at 1 July 2013 restated	1,966,060	492,103	349,906	(1,917,608)	890,461
Total Comprehensive Income
Loss for the year ended 30 June 2014	-	-	-	(205,606)	(205,606)
Transactions with owners
Expired redemption of B shares not taken up	-	24,675	-	-	24,675
As at 30 June 2014	1,966,060	516,778	349,906	(2,123,214)	709,530

CONDENSED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 31 DECEMBER 2015

	Six months ended 31 Dec 2015 (unaudited) £		Six months ended 31 Dec 2014 (unaudited) £		Year ended 30 Jun 2015 (audited) £
Net cash (outflows) from operating activities	(82,259)		(58,123)		(154,939)
Cash flows from investing activities
Sale of investments	59,611		50,582		50,582
Net cash generated from investing activities	59,611		50,582		50,582
Cash flows from financing activities
Expired redemption - B Shares not taken up	-		-		34,782
Ordinary shares issues - open offer	509,602		-		-
Net cash used in financing activities	509,602		-		34,782
Net (decrease) in cash and cash equivalents	486,954		(7,541)		(69,575)
Cash and cash equivalents at the beginning of the period / year	7,291		76,866		76,866
Cash and cash equivalents at the end of the period / year	494,245		69,325		7,291

Reconciliation of net cash flow from operating activities
	Six months ended 31 Dec 2015 (unaudited) £		Six months ended 31 Dec 2014 (unaudited) £			Year ended 30 Jun 2015 (audited) £
Total comprehensive loss for the period / year	(362,807)		(90,344)			(222,239)
Adjustment for unrealised (gain) / loss on investments at fair value through profit or loss	177,612		(263,960)			(199,159)
Adjustments for realised gains on investments at fair value through profit or loss	107,337		294,644			294,644
Decrease / (increase) in prepayments and accrued income	270		6,087			(2,114)
Decrease in creditors and accrued expenses	(4,671)		(4,548)			(26,071)
Net cash out flow from operating activities	(82,259)		(58,123)			(154,939)

NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2015

1. Accounting Policies

Basis of accounting

The interim financial statements have been prepared in accordance with the International Accounting Standard ("IAS") 34, Interim Financial Reporting.

The interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company's annual financial statements for the period to 30 June 2015. The annual financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS").

The same accounting policies and methods of computation are followed in the interim financial statements as in the annual financial statements for the period ended 30 June 2015.

2. Investments

			Six months ended 31 Dec 2015 (unaudited) £			Six months ended 31 Dec 2014 (unaudited) £		Year ended 30 Jun 2015 (audited) £
Sterling Energy PLC, at market value		43,500				58,620		52,500
Cost, 300,000 shares		517,838				517,838		517,838
(31 December 2014: 300,000 shares, 30 June 2015: 300,000 shares)
Argos Resources Limited, at market value		45,000				145,000		81,300
Cost, 1,000,000 shares		310,775				310,775		310,775
(31 December 2014: 1,000,000 shares, 30 June 2015: 1,000,000 shares)
Falkland Oil and Gas Limited ("Falkland"), at market value		99,318				296,553		394,198
Cost, 1,196,600 shares		799,081				966,029		966,029
(31 December 2014: 1,446,600 shares, 30 June 2015: 1,446,600 shares)
Pancontinental Oil and Gas NL ("Pancontinental"), at market value		4,443				101,448		8,823
Cost, 3,000,000 shares		393,246				393,246		393,246
(31 December 2014: 3,000,000 shares, 30 June 2015: 3,000,000 shares)
Total market value	192,261					601,621		536,821
Total cost	2,020,940					2,187,888		2,187,888
Current period movement	(1,828,679)					(1,586,267)		(1,651,067)
Reverse prior year FV adjustment	1,651,067					1,850,226		1,586,267
	(177,612)					263,959		(64,800)
Realised (loss	(107,337)					(294,644)		(294,644)
Unrealised (loss) / gain	(177,612)					263,959		199,159
Current period income statement impact	(284,949)					(30,685)		(95,485)

 

END

 

 

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