Last checked at 30 Mar 2016 07:00
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 |
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Loss for the year ended 30 June 2015 | - | - | - | (222,239) | (222,239) |
Transactions with owners |
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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 |
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Loss for the period ended 31 December 2015 | - | - | - | (362,807) | (362,807) |
Transactions with owners |
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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 |
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| 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 |
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Loss for the year ended 30 June 2014 | - | - | - | (205,606) | (205,606) |
Transactions with owners |
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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 |
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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) | ||||||||
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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) | ||||||||
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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) | ||||||||
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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) | ||||||||
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Total market value | 192,261 | 601,621 | 536,821 | |||||
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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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