Final Results

Westmount Energy Limited
05 December 2006





5 December 2006


CONTACTS:

Westmount Energy Limited      Tel: [phone]
Paul Anderson, Director
Ruegg & Co Limited            Tel: [phone]
Gavin Burnell
Merlin                        Tel: [phone]
Tom Randell                   Mob: [phone]


                            
                            WESTMOUNT ENERGY LIMITED
                                                                                
                 PRELIMINARY RESULTS FOR YEAR ENDED 30 JUNE 2006


The Board of Westmount Energy Limited, the Jersey, Channel Islands based
independent oil and gas investment company ('the Company') today announces the
preliminary results of the Company and its subsidiary ('the Group') for the year
ended 30 June 2006. Highlights are as follows:


   • Turnover from discontinued operations in the North Sea £1,118 (2005:
     £137,925).

   • Profit before tax of £4,759,631, profit after tax £4,292,357 (2005:
     Profit before tax of £485,867, profit after tax £461,362).

   • Basic earnings per share of 57.19p (2005: 6.14p).

   • Diluted earnings per share of 56.20p (2005: 6.14p).

   • The results for the year ended 30 June 2006 include the surplus realised
     on the termination of the Group's overriding royalty interest relating to
     Licence P241 North Sea amounting to £1,706,201 and the profit realised on
     the disposal of 40 million of the Company's shareholding of 70 million
     Ordinary Shares of Sterling Energy plc amounting to £3,189,999.


Following the approval of Shareholders at the Extraordinary General Meeting of
the Company held on 22 December 2005 Capital of the equivalent of 50p per 10p
Ordinary Share totalling approximately £7,500,000 was authorised to be returned
to shareholders. Shareholders have also received one Consolidated Ordinary Share
of 20p for every two Ordinary Shares of 10p each held. On 31 January 2006 a
total of £5,836,679 was returned to shareholders and those shareholders not
receiving full earlier payment were forwarded return of capital on 1 May 2006,
totalling £1,670,001.50.

The 10p Ordinary Shares of the Company commenced trading on AIM on 2 October
1995 at 15p. Following the Share Capital Re-organisation and the purchase of
81,680 20p Ordinary Shares by the Company, there are now 7,425,000 20p Ordinary
Shares in issue traded on AIM held by approximately 1,600 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.

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

'The Board of Westmount continues to look forward to the growth in value of its
investments which already indicate a good profit margin over book value.'

Attached: Full text of the Chairman's Review from the forthcoming Annual Report,
including the Consolidated Profit and Loss Account, Consolidated Balance Sheet
and Consolidated Cash Flow Statement.

Copies of the preliminary 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 REVIEW

The results for the year ended 30 June 2006 show profits before taxation of
£4,759,631 (£4,292,357 after taxation) compared with profits before taxation of
£485,867 (£461,362 after taxation) for the year ended 30 June 2005. Turnover for
the year ended 30 June 2006 arising from the group's discontinued operations in
the North Sea amounted to £1,118 as compared with £137,925 for the year ended 30
June 2005.

For the year ended 30 June 2006 the results include the surplus realised on the
termination of the group's overriding royalty interest relating to Licence P241
North Sea amounting to £1,706,201. Also included in the profits for the year is
the profit realised on the disposal of 40,000,000 ordinary shares of Sterling
Energy plc ('Sterling') amounting to £3,189,999.

As set out in the circular to shareholders dated 25 November 2005 following the
sale of the two investments referred to above, the company had cash funds
available of approximately £9 million and your directors were in a position to
recommend return of capital to shareholders, whilst retaining sufficient funds
for the future growth of the company. Following the Extraordinary General
Meeting of the company held on 22 December 2005 it was announced that all
enabling resolutions as set out in the circular were duly passed and accordingly
capital of the equivalent of 50p per ordinary share totalling approximately
£7,500,000 would be returned to shareholders. Shareholders would also receive
one consolidated ordinary share of 20p for every two ordinary shares of 10p each
held. On 31 January 2006 a total of £5,836,679 was returned to shareholders and
those shareholders not receiving full earlier repayment were forwarded return of
capital on 1 May 2006, totalling £1,670,001.50.

On 19 January 2006 the company announced it had provided a £500,000 convertible
loan to AIM quoted CDS Oil and Gas Group plc ('CDS') to be utilised solely
towards the funding of its exploration programme in the Chaco Basin in North
West Paraguay, South America. One of the features of the arrangements is that if
the Loan is not repaid on 29 December 2006, Westmount will apply the amount of
the Loan and accrued interest by subscribing for such number of new 1p ordinary
shares of CDS, calculated by the average price (less 5% thereof) of an ordinary
share of 1p each in CDS as traded on AIM for the previous 14 trading days.

The company's investment policy is to continue to invest, mainly in the energy
sector, selectively in companies principally at an early stage of their
development, which the directors of Westmount consider hold the possibility of
considerable capital growth of the funds invested. Your directors will also
continue its policy of divesting part or all of the funds so invested in a
company, when appropriate, to maximise the return from the investments, for the
benefit of Westmount shareholders.

Besides the recent investment in CDS, referred to above the company's other
investments include, 30,000,000 shares of AIM quoted Sterling, 5,500,000 shares
of AIM quoted Desire Petroleum plc ('Desire') and 244,000 shares of presently
unquoted Eclipse Energy Company Limited ('Eclipse'). The carrying book value of
these investments is £4,882,017. Having regard to the current middle-market
prices of the company's two AIM quoted investments, the indicated market value
shows up a surplus much in excess of the book carrying value of the investments.

Sterling is an oil and gas exploration and production company operating in the
Gulf of Mexico and Africa and recently published its interim results for the
first half of 2006. These show continued growth in its development over the
corresponding period last year. Turnover was increased 263% to £24.5 million,
net profit up 159% to £4.9 million and earnings per share up to 0.34p per share
from 0.13p per share. Sterling's strategy is to create value by achieving a
balance between production and exploration. Sterling has a growing cash position
and an active and largely carried exploration portfolio with 8 wells planned
over the next year.

Through its shareholding in Desire the company has a significant indirect
investment in the exploration of the North Falkland Basin, South Atlantic.
Following Desire's fundraising of £24.4 million last year it is ready to resume
drilling operations as soon as arrangements can be made to secure a suitable
rig.

Eclipse has developed an innovative concept for the hybrid production of
electricity from offshore gas and wind resources. The first development of
Eclipse is the Ormonde project located 10 kilometres offshore Barrow-in-Furness,
Cumbria in the East Irish Sea. Eclipse operates the undeveloped Ormonde North
and South gas fields located in Blocks 113/28a and 113/29a held under licences
P1032 and P1033. Eclipse completed a placing of new shares at a price of £7.50
each last year to raise £4,950,000 before expenses. Eclipse is currently waiting
approval from the DTI for the Ormonde project.

CDS's activities are focused on exploring several potential oil and gas plays in
the Chaco Basin in North West Paraguay. Under the terms of the joint-venture
agreement on the Gabino Mendoza block CDS had an obligation to drill a well
before the end of 2005. The well reached a planned depth of 1,635 metres and was
cased and suspended for testing and deepening at a later date. The initial
objective of the well was a potential oil-bearing zone between 705 metres and
1,600 metres. Analysis to date by CDS of the technical information derived from
the well, confirms that hydrocarbons were found within several zones, although
reservoir qualities are lower than required to flow oil unassisted. CDS believes
that the results from the well have improved the level of confidence of the gas
potential at depth on the Gabino Mendoza block and merits a deepening of the
well. The drilling of the well fulfilled CDS's work obligation on the block
although CDS has stated that at a later date it intends to drill the well to
3,250 metres to test for gas. CDS holds prospecting rights over a large area of
the under-explored Chaco Basin of North West Paraguay which is due east of, and
shares the same stratigraphy at shallower depth as, the oil and gas producing
areas in Bolivia. The two most interesting plays have yet to be drilled by CDS -
the Carboniferous oil on the Boqueron block and the deep Devonian gas on the
Gabino Mendoza block. CDS plans to bring in joint venture partners to provide
further funding, in addition to further placing of its shares (CDS reported on
17 October 2006 it had raised a further £1.8 million in cash), to spread the
risk for its shareholders.


Outlook

The Board of Westmount continues to look forward to the growth in value of its
investments which already indicate a good profit margin over book value.


DEREK G WILLIAMS
Chairman

5 December 2006




CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2006
(Expressed in United Kingdom Sterling)


                                                       2006                     2005
                                              £           £            £           £

Turnover
Continuing operations                         -                        -
Discontinued operations                   1,118                  137,925
                                        --------                 --------
                                                      1,118                  137,925

Operating costs                                           -                   (5,927)
                                                    --------                 --------
Operating profit before
administrative
expenses
Continuing operations                         -                        -
Discontinued operations                   1,118                  131,998
                                        --------                 --------
                                                      1,118                  131,998

Administrative expenses                            (316,022)                (280,841)

Profit on termination of oil
and gas
field interests                       1,706,201                        -
Profit on disposal of                 3,190,096                  639,751
investments
Interest and similar fees               178,238                   27,584
receivable
Bank loan interest and
charges
payable                                       -                  (32,625)
                                       --------                  --------
                                                  5,074,535                  634,710
                                                   --------                 --------
Net profit on ordinary
activities before taxation 
                                                  4,759,631                  485,867

Taxation                                           (467,274)                 (24,505)
                                                    --------                 --------
Profit for the year                               4,292,357                  461,362
                                                    --------                 --------

Basic earnings per share                              57.19p                    6.14p
                                                    --------                 --------

Diluted earnings per share                            56.20p                    6.14p
                                                    --------                 --------




CONSOLIDATED BALANCE SHEET AT 30 JUNE 2006
(Expressed in United Kingdom Sterling)


                                                    2006                        2005
                                         £             £             £             £


FIXED ASSETS
Tangible fixed assets                    -                      32,563
Investments                      4,882,017                   9,482,017
                                  --------                    --------
                                               4,882,017                   9,514,580

CURRENT ASSETS

Debtors                            505,549                      11,779
Cash at bank                       880,222                      34,791
                                  --------                    --------
                                 1,385,771                      46,570
CREDITORS: amounts
falling due
within one year                   (176,148)                    (71,060)
                                  --------                    --------

NET CURRENT ASSETS/
(LIABILITIES)                                  1,209,623                     (24,490)
                                                --------                    --------

TOTAL ASSETS LESS CURRENT LIABILITIES          6,091,640                   9,490,090
                                                --------                    --------


SHARE CAPITAL AND RESERVES

Share capital                                  1,496,686                   1,501,336
Share premium account                            668,220                     974,248
Capital redemption reserve                       150,134                           -
Profit and loss account                        3,776,600                   7,014,506
                                                --------                    --------

SHAREHOLDERS' FUNDS                            6,091,640                   9,490,090
                                                --------                    --------


These financial statements were approved by the board of directors on 5 December 2006.

D G WILLIAMS
Chairman




CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2006
(Expressed in United Kingdom Sterling)


                                           2006              2005
                                              £                 £

Net cash outflow from operating
activities                              (325,752)          (64,519)

Returns on investments and
servicing of finance
                                         178,238            63,813

Taxation                                (500,869)          (19,605)

Capital expenditure and financial      9,028,860           779,581
investment                              --------          --------

Cash outflow before financing          8,380,477           759,270

Financing                             (7,535,046)         (764,174)
                                        --------           --------

Increase/(decrease) in cash in           845,431            (4,904)
the year                                --------           --------

Reconciliation of cash flow to movement
in net funds/(debt)

Increase/(decrease) in cash in          845,431             (4,904)
the year

Cash outflow from decrease in                 -            764,174
debt

Loan advance                            500,000                  -

Cash inflow from decrease in                  -            (94,332)
current asset                          --------            --------

Change in net funds resulting         1,345,431            664,938
from cashflows

Non-cash movements on debt                   -            (575,900)
                                       --------
                                                          --------

Movement in net funds in the year     1,345,431             89,038

Net funds/(debt) brought forward         34,791            (54,247)
                                       --------           --------

Net funds carried forward             1,380,222             34,791
                                       --------           --------










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