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: +44 (0)1534 823028

 

Cenkos Securities plc, Nomad and Broker

Nicholas Wells / Elizabeth Bowman        Tel: +44 (0)20 7397 8900

 

                                                     

 

 

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)

 






 

 


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