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

 







Cenkos Securities plc Nomad and Broker

Tel: +44 (0)20 7397 8900

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.


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