Interim Results

RNS Number : 0987B

Westmount Energy Limited

31 March 2017

 



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 2016. 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 continued to be a challenging and uncertain time for the Oil & Gas industry but there were continued signs of improvement.

From a Westmount perspective, the more stable oil price and improved investor sentiment towards the E&P sector has given rise to some opportunities which should enable the process of repositioning your Company as a niche exploration and production investor in the conventional oil and gas sector.

We have identified the Guyana offshore basin as an area of interest and in line with our strategy, on February 8, 2017, we announced a £500k strategic investment in Eco (Atlantic) Oil & Gas Ltd ("EOG") at a price of 16 pence per ordinary share as part of the EOG IPO on AIM.

EOG successfully raised GBP5.09 million in an oversubscribed placing, which is further evidence of the improvement in investor sentiment and interest in ECO's Guyanese and Namibian exploration permits. Westmount holds 2.6% approximately of EOG's issued share capital and EOG is the only junior E&P company listed on AIM with exposure to offshore Guyana, which is emerging as a major oil province.

The primary motive for the investment in EOG was to offer Westmount shareholders a low entry cost exposure to the 1,800 km² Orinduik offshore block in the Guyana basin. The Orinduik block is operated by Tullow Oil Plc and is adjacent to, and updip of, the Stabroek Block operated by ExxonMobil. Stabroek contains the world-class Liza & Payara oil discoveries, which are estimated by ExxonMobil to have recoverable resources of approximately 1.4 - 2 billion boe. ExxonMobil is currently drilling the Snoek exploration well which is also located a short distance from the Orinduik block and well results are expected shortly. I expect to see significant exploration activity in the region over the coming years and would like to expand Westmount's interest in this exciting exploration region.

The Interim Financial Statements show a loss for the period of £136,164 of which £38,368 relates to a write down of the value of the portfolio.

Portfolio

The recent addition of the investment in ECO (Atlantic) Oil & Gas Ltd ('EOG') has transformed the portfolio.

We continue to hold our legacy investments with exposure to the Falkland Islands, namely Rockhopper and Argos. The share price performance of these holdings continues to be in line with weak oil prices. We have recently disposed of the remaining holding of Sterling Energy Plc for re investment in EOG.

FUTURE

The Board has carefully assessed the cash position of the Company and believes that the corporate overhead has been reduced as much as possible at the current time. The Board continues to believe that the current Westmount corporate structure and AIM listing provides an ideal platform to leverage on new investment opportunities or provide a vehicle for corporate transactions.

Westmount continues to seek and evaluate corporate transactions and investment opportunities with a focus on the Guyana offshore area.  The Board would expect to finance any future corporate transactions via the AIM market platform.  

Finally, I thank our shareholders and stakeholders for their continued support.

GERARD WALSH

Chairman

30 March 2017

For further information, please contact:

Westmount Energy Limited	www.westmountenergy.com
David King, Director	Tel: [phone]
Cenkos Securities plc Nomad and Broker	Tel: [phone]
Nicholas Wells / Elizabeth Bowman (Corporate Finance)

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 DECEMBER 2016

	Six months ended 31 Dec 2016 (unaudited) £		Six months ended 31 Dec 2015 (unaudited) £		Year ended 30 Jun 2016 (audited) £
Net loss on financial assets held at fair value through profit or loss	(38,368)		(284,950)		(260,911)
Administration expenses	(97,796)		(77,857)		(173,112)
Operating loss	(136,164)		(362,807)		(434,023)
Loss before tax	(136,164)		(362,807)		(434,023)
Tax			-		-
Comprehensive loss for the period / year	(136,164)		(362,807)		(434,023)
Basic loss per share (pence)	(0.01)		(0.02)		(2.59)
Diluted loss per share	(0.01)		(0.02)		(2.59)

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 2016

	31 Dec 2016 (unaudited) £		31 Dec 2015 (unaudited) £		30 Jun 2016 (audited) £
ASSETS
Non-current assets
Financial assets at fair value through profit or loss	239,205		192,261		216,299
Current assets
Other receivables	5,468		9,451		10,023
Cash and cash equivalents	234,516		494,245		402,716
	239,984		503,696		412,739
Total assets	479,189		695,957		629,038
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables	17,702		27,090		31,387
EQUITY
Share capital	3,027,221		3,027,221		3,027,221
Share option account	349,906		349,906		349,906
Retained earnings	(2,915,640)		(2,708,260)		(2,779,476)
Total equity	461,487		668,867		597,651
Total liabilities and equity	479,189		695,957		629,038

CONDENSED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 DECEMBER 2016

	Share capital account £	Share premium account £	Share option account £	Retained earnings £	Total equity £
As at 1 July 2015	1,966,060	551,560	349,906	(2,345,453)	522,073
Comprehensive Income Loss for the year ended 30 June 2016	-	-	-	(434,023)	(434,023)
Transactions with owners Open offer at 4p per 20p ordinary share	509,601	-	-	-	509,601
Conversion of 20p ordinary shares to nil par value shares	551,560	(551,560)	-	-	-
As at 30 June 2016	3,027,221	-	349,906	(2,779,476)	597,651
Total Comprehensive Income
Loss for the period ended 31 December 2016	-	-	-	(136,164)	(136,164)
As at 31 December 2016	3,027,221	-	349,906	(2,915,640)	461,487

	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

CONDENSED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 31 DECEMBER 2016

	Six months ended 31 Dec 2016 (unaudited) £		Six months ended 31 Dec 2015 (unaudited) £		Year ended 30 Jun 2016 (audited) £
Cash flows from operating activities
Total comprehensive loss for the period / year	(136,164)		(362,807)		(434,023)
Adjustments for net loss on financial assets at fair value through profit or loss	38,368		284,949		260,911
Decrease / (increase) in other receivables	4,556		270		(302)
Decrease in trade and other payables	(13,685)		(4,670)		(373)
Purchase of investments	(61,275)		-		-
Proceeds from sale of investments	-		59,611		59,611
Net cash out flow from operating activities	(168,200)		(22,647)		(114,176)
Cash flows from financing activities
Proceeds from issue of ordinary shares	-		509,601		509,601
Net cash generated from financing activities	-		509,601		509,601
Net increase / (decrease) in cash and cash equivalents	(168,200)		486,954		395,425
Cash and cash equivalents at the beginning of the period / year	402,716		7,291		7,291
Cash and cash equivalents at the end of the period / year	234,516		494,245		402,716

NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2016

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 2016. 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 2016.

2. Investments

	Six months ended 31 December 2016			Six months ended 31 December 2015		Year ended 30 June 2016
	(unaudited)			(unaudited)		(audited)
	£			£		£
Sterling Energy PLC, at market value	45,000			43,500		45,750
Cost, 300,000 shares	517,838			517,838		517,838
(31 December 2015: 300,000 shares, 30 June 2016: 300,000 shares)
Argos Resources Limited, at market value	45,000			45,000		37,500
Cost, 1,000,000 shares	310,775			310,775		310,775
(31 December 2015: 1,000,000 shares, 30 June 2016: 1,000,000 shares)
Falkland Oil and Gas Limited ("Falkland"), at market value	-			99,318		-
Cost,  nil shares	-			799,081		-
(31 December 2015: 1,196,600 shares, 30 June 2016: nil shares)
Rockhopper Exploration plc ("Rockhopper"), at market value	81,477			-		128,036
Cost, 358,142 shares	799,081			-		799,081
(31 December 2015: nil shares, 30 June 2016: 358,142 shares)
Pancontinental Oil and Gas NL ("Pancontinental"), at market value	7,032			4,443		5,013
Cost, 3,000,000 shares	393,246			393,246		393,246
(31 December 2015: 3,000,000 shares, 30 June 2016: 3,000,000 shares)
JHI Associates Inc ("JHI"), at market value	60,696			-		-
Cost, 100,000 shares
(31 December 2015: nil shares, 30 June 2016: nil shares)	61,274			-		-
Total market value	239,205			192,261		216,299
Total cost	2,082,214			2,020,940		2,020,940
Current period movement	(1,843,009)			(1,828,679)		(1,804,641)
Reverse prior year FV adjustment	1,804,641			1,651,067		1,651,067
	(38,368)			(177,612)		(153,574)
Realised (loss)	-			(107,337)		(107,337)
Unrealised (loss)/gain	(38,368)			(177,612)		(153,574)
Current period income statement impact	(38,368)			(284,949)		(260,911)

This announcement contains inside information.

 

END

 

 

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