Interim Results

RNS Number : 3591I
Westmount Energy Limited
21 March 2018
 

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 2017. 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

2017 Highlights

 

·      Continued Focus on Guyana-Suriname Basin

 

·      Operating Profit of £197,645 for the 6 month period to December 31, 2017

 

·      Strategic Investment in Eco (Atlantic) Oil and Gas Limited to gain exposure to the Guyana offshore shows strong performance

 

·      Evaluation of Exploration & Production opportunities with potential for a substantial transaction continue

 

The second half of 2017 was characterised by a continuing improvement in oil prices and investor sentiment towards the sector. In addition, offshore Guyana is proving to be a major exploration hotspot with a string of significant oil discoveries announced by ExxonMobil throughout 2017 and into early 2018 and the announcement by Total of a multi-block farm-in on the 5th February 2018, subject to approval by the relevant authorities.  These elements have contributed to rising asset prices and this improvement is reflected in your Company's financial performance with a net operating profit of £197,645 for the six months to 31 December 2017.

 

The net operating profit results in the main from the share price performance of your Company's strategic investment in Eco (Atlantic) Oil & Gas ('EOG'). As at 20 March 2018, the EOG investment has more than doubled in value since our investment in February 2017 and continues to provide Westmount shareholders with exposure to Guyanese offshore exploration activity. EOG has recently been recognised as a 2018 TSX Venture 50™ company - an annual ranking of top-performing companies on the TSX Venture Exchange (the 'TSX-V') over the last year- achieving a 'top 10' status in the oil and gas sector, one of the five main sectors on the TSX-V.  This accolade reflects, inter alia, two achievements, namely the announcement of the Orinduik Farm-in option agreement with Total E&P Activités Pétrolières, ("Total") on 26th September 2017, which grants Total the option to acquire a 25% working interest in the Orinduik Block; and secondly, the Strategic Alliance and Share Subscription Agreement with Africa Oil Corporation, announced on 13th November 2017, which raised gross proceeds of CAD$14 million.

 

In addition to the general improvement in the London listed Oil & Gas sector, the ExxonMobil led exploration programme on the Stabroek Block, offshore Guyana, continues to deliver excellent results. On the 28th February 2018 ExxonMobil announced a further oil discovery, Pacora-1, the 7th major oil discovery on the block since May 2015 - adding to previous world-class discoveries at Liza, Payara, Snoek, Liza Deep, Turbot and Ranger, which are estimated to contain more than 3.2 billion recoverable oil-equivalent barrels.

Continued success on the Stabroek Block is likely to increase the industry's interest in the Guyanese offshore sector and should continue to support investor interest in EOG and other quoted companies offering investment exposure to this world class deep-water play.

Outlook

Your Company's focus continues to be to seek exposure to exploration opportunities in the Guyana-Suriname basin. Although competition has increased in this space, we believe that significant opportunities remain with the Westmount platform presenting an opportunity to create a London listed and financed vehicle with exploration exposure to the Guyana offshore play.

 

While Guyana is a primary focus, we continue to evaluate other investment and potential transaction opportunities. We will update investors on any significant developments at the earliest opportunity.

 

 

GERARD WALSH

Chairman

20 March 2018

 

 

For further information, please contact:

 

Westmount Energy Limited                             www.westmountenergy.com

David King, Director                                            Tel: +44 (0) 1534 823133

Jane Vlahopoulou                                              

 

Cenkos Securities plc (Nomad and Broker)

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

Elizabeth Bowman

 

 

 

 

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 DECEMBER 2017

 


Six months ended

31 Dec 2017

(unaudited)

£


Six months ended

31 Dec 2016

(unaudited)

£


Year ended

30 Jun 2017

(audited)

£

Net profit / (loss) on financial assets held at fair value through profit or loss

254,106


(38,368)


(8,682)

Administration expenses

(53,461)


(97,796)


(188,818)

Share options expensed

(3,000)


-


(3,000)







Operating profit / (loss)

197,645


(136,164)


(200,500)







Profit / (loss) before tax

197,645


(136,164)


(200,500)







Tax

-


-


-







Comprehensive profit / (loss)  for the period / year

197,645


(136,164)


(200,500)













Basic profit / (loss) per share (pence)

0.48


(0.60)


(0.79)

Diluted profit / (loss) per share

0.39


(0.60)


(0.79)

 

 

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 2017

 


31 Dec 2017

(unaudited)

£


31 Dec 2016

(unaudited)

£


30 Jun 2017

(audited)

£







ASSETS






Non-current assets






Financial assets at fair value through profit or loss

974,697


239,205


720,591

Current assets






Other receivables

2,984


5,468


10,778

Cash and cash equivalents

466,839


234,516


548,042


469,823


239,984


558,820







Total assets

1,444,520


479,189


1,279,411













LIABILITIES AND EQUITY






Current liabilities






Trade and other payables

38,200


17,702


73,736







EQUITY






Share capital

3,772,244


3,027,221


3,772,244

Share option account

355,906


349,906


352,906

Retained earnings

(2,721,830)


(2,915,640)


(2,919,475)

Total equity

1,406,320


461,487


1,205,675







Total liabilities and equity

1,444,520


479,189


1,279,411







 

 

 

 

 

CONDENSED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 DECEMBER 2017

 

 

Share capital account

£

Share premium account

£

Share option account

£

Retained earnings

£

Total equity

£

As at 1 July 2016

2,966,120

-

349,906

(2,718,975)

597,651

Comprehensive Income

Loss for the year ended 30 June 2017

-

-

-

(200,500)

(200,500)

Transactions with owners

Subscription and open offer at 5p per nil par value ordinary share

805,524

-

-

-

805,524

Share options expensed

-

-

3,000

-

3,000

As at 30 June 2017

3,772,244

-

352,906

(2,919,475)

1,205,675

Comprehensive Income

 

 

 

 

 

Profit for the period ended 31 December 2017

-

-

-

197,645

197,645

Transactions with owners

 

 

 

 

 

Share options expensed

-

-

3,000

-

3,000

As at 31 December 2017

3,772,244

-

355,906

(2,721,830)

1,406,320

 

 

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 (as previously reported)

-

-

-

(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)

-

-

-

Prior year adjustment

(60,501)

-

-

60,501

-

As at 30 June 2016

2,966,120

-

349,906

(2,718,975)

597,651

 

 



 

CONDENSED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 31 DECEMBER 2017

 


Six months ended

31 Dec 2017

(unaudited)

£


Six months ended

31 Dec 2016

(unaudited)

£


Year ended

30 Jun 2017

(audited)

£

Cash flows from operating activities






Total comprehensive profit / (loss) for the period / year

197,645


(136,164)


(200,500)

 

Adjustments for net (profit) / loss on financial assets at fair value through profit or loss

(254,106)


38,368


8,682

 

Adjustment for share options expensed

3,000


-


3,000

 

Decrease / (increase) in other receivables

7,794


4,556


(755)

 

(Decrease) / increase in trade and other payables

(35,536)


(13,685)


42,349

 

Purchase of investments

-


(61,275)


(561,274)

 

Proceeds from sale of investments

-


-


48,300

 

Net cash out flow from operating activities

(81,203)


(168,200)


(660,198)

 

 






 

Cash flows from financing activities






 

Receipt of loan from Director

-


-


300,000

 

Repayment of loan from Director

-


-


(300,000)

 

Proceeds from issue of ordinary shares

-


-


805,524

 

Net cash generated from financing activities

-


-


805,524

 

 






 

Net (decrease) / increase in cash and cash equivalents

(81,203)


(168,200)


145,326

 

Cash and cash equivalents at the beginning of the period / year

548,042


402,716


402,716

 

Cash and cash equivalents at the end of the period / year

466,839


234,516


548,042

 

 

 

 

NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2017

 

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 2017. 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 2017.

 

 

2. Investments


Six months ended

31 December 2017


Six months ended

31 December 2016


Year

ended

30 June

2017


(unaudited)


(unaudited)


(audited)


£


£


£







Sterling Energy PLC, at market value

-


45,000


-

Cost, nil shares

-


517,838


-

(31 December 2016: 300,000 shares, 30 June 2017: nil shares)












Argos Resources Limited, at market value

28,000


45,000


30,000

Cost, 1,000,000 shares

310,775


310,775


310,775

(31 December 2016: 1,000,000 shares, 30 June 2017: 1,000,000 shares)












Eco Atlantic Oil & Gas Oil Limited, at market value

790,625


-


531,250

Cost,  3,125,000 shares

500,000


-


500,000

(31 December 2016: nil shares, 30 June 2017: 3,125,000 shares)












Rockhopper Exploration plc, at market value

75,210


81,477


80,582

Cost, 358,142 shares

799,081


799,081


799,081

(31 December 2016: 358,142 shares, 30 June 2017: 358,142 shares)












Pancontinental Oil and Gas NL, at market value

6,938


7,032


1,772

Cost, 3,000,000 shares

393,246


393,246


393,246

(31 December 2016: 3,000,000 shares, 30 June 2017: 3,000,000 shares)












JHI Associates Inc, at market value

73,923


60,696


76,987

Cost, 100,000 shares






(31 December 2016: 100,000 shares, 30 June 2017: 100,000 shares)

61,274


61,274


61,274







Total market value

974,696


239,205


720,591







Total cost

2,064,376


2,082,214


2,064,376







Current period movement

(1,089,680)


(1,843,009)


(1,343,785)

Reverse prior year FV adjustment

1,343,784


1,804,641


1,804,641


254,106


(38,368)


460,856







Realised (loss)

-


-


(469,538)

Unrealised gain / (loss)

254,106


(38,368)


460,856

Current period income statement impact

254,106


(38,368)


(8,682)

 






 

 


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