Interim Results
Westmount Energy Limited
26 March 2007
26 March 2007
CONTACTS:
Westmount Energy Limited Tel: 01534 814209
Paul Anderson, Director
Ruegg & Co Limited Tel: 020 7584 3663
Gavin Burnell
Brett Miller
PRESS RELEASE
WESTMOUNT ENERGY LIMITED
INTERIM RESULTS FOR THE SIX MONTHS
ENDED 31 DECEMBER 2006
The Board of Westmount Energy Limited ('the Company') today announces the
interim results of the Company for the six months ended 31 December 2006.
Note for Editors:
Westmount Energy Limited ('Westmount') is a Jersey based AIM quoted Energy
Investment Company. Its present investments include, 30,000,000 shares of AIM
quoted Sterling Energy plc, 5,500,000 shares of AIM quoted Desire Petroleum plc,
37,622,687 shares of AIM quoted CDS Oil & Gas Group plc and 244,000 shares of
presently unquoted Eclipse Energy UK plc. Westmount has no borrowings.
Copies of the interim results will be available from the offices of Ruegg & Co
Limited, 39 Cheval Place, London SW7 1EW for a period of one month from today's
date.
CHAIRMAN'S INTERIM REVIEW
The results for the six months ended 31 December 2006 show a loss of £91,090
versus a profit of £4,050,578 (restated following the introduction of FRS 20:
Share Based Payment), after taxation for the six months ended 31 December 2005.
Following the death of Westmount's Chairman Mr Derek G Williams on 19 January
2007, steps have been taken to review the composition of the Board, and as a
result, the Board is pleased to have recently announced the appointment of Alan
Levison as a director and as Chairman of the Board with effect from 17 March
2007.
Alan brings with him 30 years of experience in the oil and gas industry. He
holds a M.Sc. in Petroleum Geology from Imperial College London and has spent
the majority of his career in Chevron and BG in senior management roles. In
recent years Alan has served on the boards of Fusion Oil and Gas plc, Sterling
Energy plc and is currently serving on the board of Eclipse Energy UK plc, where
Westmount holds a significant equity interest.
The re-constituted Board is undertaking a detailed review of Westmount's
strategy in relation to both existing investments as well as other opportunities
which may exist or which may arise, to enhance the value per share for the
benefit of shareholders.
On 8 February 2007, Eclipse Energy UK plc ('Eclipse'), the low carbon energy
company, announced that it had been granted consent to construct and operate the
Ormonde offshore wind farm and to generate and export electricity from the
adjacent Ormonde Gas Fields development by the UK Government. This consent
completes the series of principal permissions necessary to construct the world's
first co-development of offshore gas and wind energy in the East Irish Sea.
When constructed, Ormonde is expected to be able to generate up to 200 MW of
electricity from gas turbines and a dedicated offshore wind farm of 30 turbines.
The project which anticipates the first energy to be produced in 2009, will be
able to supply the equivalent of three quarters of Cumbria's domestic local
generating demand which is enough energy to power over 155,000 homes, the
equivalent of which 71,000 would be powered by renewable energy, and which will
save up to 286,000 tons of CO2 per year. The Board believes that as the largest
equity shareholder in Eclipse, Westmount is in an excellent position to
capitalise on the potential next stages in Eclipse's development.
On 8 January 2007, the £500,000 Convertible Loan to AIM quoted CDS Oil & Gas
Group plc ('CDS'), together with accrued interest of £36,123.29, was converted
into equity and Westmount subscribed for 37,622,687 shares in CDS. Westmount now
has a 9.79% interest in the enlarged share capital of CDS.
In addition to its interests in Eclipse and CDS, Westmount holds 30,000,000
shares of AIM quoted Sterling Energy plc and 5,500,000 shares in AIM quoted
Desire Petroleum plc.
The Ordinary shares of Westmount (originally of 10p par value) commenced trading
on AIM on 2 October 1995 at 15p. Following a share capital re-organisation and
repurchase of shares by Westmount, there are now 7,425,000 20p Ordinary shares
in issue traded on AIM held by approximately 1,350 shareholders. There are also
share options outstanding over 750,000 20p Ordinary Shares exercisable at a
subscription price of 103.5p per share, over various periods, expiring 31
December 2012.
PROFIT AND LOSS ACCOUNT
Restated Restated
Six months to Six months to Year to
31 December 2006 31 December 2005 30 June 2006
(unaudited) (unaudited) (audited)
£ £ £
Turnover -
discontinued operations - 1,118 1,118
Operating Costs - - -
Surplus on termination of
North Sea overriding royalty
interest (before taxation) - 1,706,201 1,706,201
Profit on disposal of
investments - 3,189,999 3,190,096
Interest Receivable 59,581 73,277 178,238
Administration Expenses (150,671) (452,743) (609,047)
________ ________ ________
Profit/(Loss) on ordinary
activities before taxation (91,090) 4,517,852 4,466,606
Taxation - (467,274) (467,274)
________ ________ ________
Profit/(Loss) on ordinary
activities after taxation (91,090) 4,050,578 3,999,332
________ ________ ________
Basic Earnings/(Loss) per
ordinary share (1.23)p 26.98p 53.44p
Diluted Earnings/(Loss)
per ordinary share (1.11)p 49.06p 48.57p
The results for both the prior period to 31 December 2005 and the year to 30
June 2006 have been restated for the application of Financial Reporting Standard
20: Share-based Payment. The 750,000 share options issued on 22 December 2005
have been ascribed a fair value of 39.07p each (total cost of £293,025). This
cost has been accounted for within Administration Expenses in prior periods and
an equal Share Option Reserve has been created in Shareholders Funds.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Restated Restated
Six months to Six months to Year to
31 December 2006 31 December 2005 30 June 2006
(unaudited) (unaudited) (audited)
£ £ £
Profit/(Loss) retained
for the period (91,090) 4,050,578 3,999,332
Cost of B share issue
and consolidation - - (155,895)
________ ________ ________
Total recognised gains
and losses
relating to the period (91,090) 4,050,578 3,843,437
________ ________ ________
BALANCE SHEET
Restated
31 December 2006 30 June 2006
Note (unaudited) (audited)
£ £
FIXED ASSETS
Investments 5,418,141 4,882,017
CURRENT ASSETS
Debtors - 505,549
Cash at bank 667,366 880,222
_________ ________
6,085,507 6,267,788
CREDITORS
Amounts falling due within one year (148,399) (176,148)
_________ ________
TOTAL ASSETS LESS CREDITORS 5,937,108 6,091,640
_________ ________
SHARE CAPITAL AND RESERVES
Share Capital 1 1,485,000 1,496,686
Share Premium Account 2 668,220 668,220
Share Option Account 3 293,025 293,025
Capital Redemption Reserve 4 150,134 150,134
Profit and Loss Account 5 3,340,729 3,483,575
_________ ________
SHAREHOLDERS' FUNDS 5,937,108 6,091,640
___________________
Notes:
£
1. Share Capital -
Balance 01.07.2006 1,496,686
Purchase of own shares (11,686)
Balance 31.12.2006 1,485,000
2. Share Premium Account -
Balance 01.07.2006 668,220
Balance 31.12.2006 668,220
3. Profit and Loss Account -
Balance 01.07.2006 -
Prior year adjustment - issue of
750,000 share options at
39p fair value 293,025
Adjusted balance 01.07.2006 293,025
Balance 31.12.2006 293,025
4. Capital Redemption Reserve -
Balance 01.07.2006 150,134
Balance 31.12.2006 150,134
5. Profit and Loss Account -
Balance 01.07.2006 3,776,600
Prior year adjustment -
issue of 750,000 share
options at 39p fair value (293,025)
Adjusted balance 01.07.2006 3,483,575
Loss for 6 months ended
31.12.2006 (91,090)
Purchase of own shares (51,756)
Balance 31.12.2006 3,340,729
CASH FLOW STATEMENT
Six months to Six months to Year to
31 December 2006 31 December 2005 30 June 2006
(unaudited) (unaudited) (audited)
£ £ £
Net cash inflow/(outflow) from
operating activities 327,129 (161,479) (325,752)
Returns on investment and
servicing of finance 59,581 73,277 178,238
Taxation paid - - (500,869)
Capital expenditure and
financial investment (536,123) 9,528,763 9,028,860
________ ________ ________
Cash inflow/(outflow)
before financing (149,413) 9,440,561 8,380,477
Financing (63,442) (42,527) (7,535,046)
________ ________ ________
Increase/(decrease) in cash (212,855) 9,398,034 845,431
________ ________ ________
Reconciliation of cash flow to
movement in net funds/(debt)
Increase/(decrease) in cash (212,855) 9,398,034 845,431
Loan advance - - 500,000
Loan repayment (500,000) - -
_________ ________ ________
Change in net funds/(debt)
resulting from cash flows (712,855) 9,398,034 1,345,431
Net funds brought forward 1,380,222 34,791 34,791
_________ ________ ________
Net funds carried forward 667,367 9,432,825 1,380,222
_________ ________ ________
Represented by:
Debtors - - 500,000
Cash at bank 667,367 9,432,825 880,222
_________ ________ ________
Net funds carried forward 667,367 9,432,825 1,380,222
_________ ________ ________
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