Last checked at 23 Mar 2011 11:45
23 March 2011
Westmount Energy Limited
Interim results to 31 December 2010
CHAIRMAN'S REVIEW
I last wrote to you in December 2010 when we were planning to make a further capital repayment of 45p per share. You will have received this in mid February of this year and together with the two previous capital repayments make a total of 160p since the shares were originally floated in 1995 at 15p per share.
There has been little change in our portfolio since my letter on the 23rd December. We continue to hold 2.45million shares in Desire Petroleum plc (Desire), 1.5million shares in Sterling Energy Plc (Sterling) and 1.million Argos Resources Limited (Argos) and in respect of each I can advise the following.
Desire
Improved Prospects for the Falkland Basin.
Rockhopper Exploration Plc (Rockhopper) has announced this week the result of their appraisal well drilled to investigate the reservoir presence and oil column adjacent to their Sea Lion discovery announced in 2010.
The well successfully flowed oil in the well bore and the drill data is now being evaluated. Rockhopper believe the result will significantly increase the potential for a commercial discovery in the Falkland basin, and are now considering further extending their drilling campaign beyond the three additional wells already contracted for with the Ocean Guardian Rig, which was announced last week
The rig will now move from the Rockhopper well to commence drilling Desire's Ninky prospect, its last remaining well to be drilled to in their present campaign. There is thus a minimum of a further six months of activity in the area and your board will be assessing its investment as further information becomes available.
Sterling
The drilling in Kurdistan has encountered geological problems with the result the well has been sidetracked and will re-drill to 3,300 metres. Results are expected in the second quarter of 2011. Your board continues to assess our holding and will make a decision on its future once the current drill results are announced
Argos Resources
Argos are currently conducting their seismic survey of their licence area and this should be completed in the second half of this year. Based on these results Argos will decide whether to contract for a rig to drill one or more exploration wells.
The Future
There has been no change to our agreed strategy to make disposals as and when the opportunity occurs with a view to returning further capital to our Shareholders and we will also pursue other opportunities to maximise Shareholder value.
Mervyn Bradlow
Chairman
23 March 2011
CONDENSED STATEMENT OF COMPREHENSIVE INCOME |
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FOR THE PERIOD ENDED 31 DECEMBER 2010 |
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(Expressed in United Kingdom Sterling) |
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Six months ended | Six months ended | Year ended |
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31 Dec 2010 | 31 Dec 2009 | 30 June 2010 |
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(unaudited) | (audited) | (audited) |
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£ | £ | £ |
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Realised gain on disposal of investments | 1,466,481 | 137,174 | 1,612,003 |
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Unrealised (loss)/gain on financial assets at fair value through profit or loss | (2,880,250) | 4,209,624 | 3,046,569 |
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Administration expenses | (175,909) | (141,890) | (333,784) |
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Operating (loss)/profit | (1,589,678) | 4,204,908 | (4,324,788) |
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Interest receivable | 3,275 | 1,299 | 3,703 |
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(Loss)/profit before tax | (1,586,403) | 4,206,207 | 4,328,491 |
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Taxation | - | - | - |
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Comprehensive (loss)/profit for the period | (1,586,403) | 4,206,207 | 4,328,491 |
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Basic (loss)/gain per share (pence) | (22.73) | 60.23 | 62.01 |
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Diluted (loss)/gain per share (pence) | (21.46) | 55.17 | 58.76 |
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The Company had no items of other comprehensive income during the period. |
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CONDENSED STATEMENT OF FINANCIAL POSITION | ||||||||||||
AS AT 31 DECEMBER 2010 | ||||||||||||
(Expressed in United Kingdom Sterling) | ||||||||||||
Six months ended | Six months ended | Year ended | ||||||||||
31 Dec 2010 | 31 Dec 2009 | 30 June 2010 | ||||||||||
Notes | (unaudited) | (audited) | (audited) | |||||||||
£ | £ | £ | ||||||||||
ASSETS | ||||||||||||
Non current assets | ||||||||||||
Financial assets at fair value through profit and loss 2 | 3,012,375 | 6,951,513 | 5,485,350 | |||||||||
Current assets | ||||||||||||
Trade receivables | 4,754 | 4,882 | 7,015 | |||||||||
Due from brokers | - | 627,540 | - | |||||||||
Cash and cash equivalents | 3,450,124 | 219,101 | 2,515,599 | |||||||||
3,454,878 | 851,523 | 2,522,614 | ||||||||||
Total assets | 6,467,253 | 7,803,036 | 8,007,964 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Trade and other payables | 234,692 | 149,021 | 210,507 | |||||||||
EQUITY | ||||||||||||
Share Capital | 1,396,060 | 1,396,060 | 1,396,060 | |||||||||
Share Premium Account | 261,682 | 261,682 | 261,682 | |||||||||
Share Option Account | 298,717 | 256,052 | 277,210 | |||||||||
Profit and Loss Account | 4,276,102 | 5,740,221 | 5,862,505 | |||||||||
Total equity | 6,232,561 | 7,654,015 | 7,797,457 | |||||||||
Total liabilities and equity | 6,467,253 | 7,803,036 | 8,007,964 | |||||||||
CONDENSED STATEMENT OF CHANGES IN EQUITY | ||||||||||||
(Expressed in United Kingdom Sterling) | ||||||||||||
Share capital | Share premium | Share option | Retained | Total equity | ||||||||
Account | Account | Account | Earnings | |||||||||
£ | £ | £ | £ | £ | ||||||||
As at 1 July 2009 | 1,396,060 | 261,682 | 244,363 | 1,534,014 | 3,436,119 | |||||||
Total comprehensive income | ||||||||||||
Profit for the period ended 31 December 2009 | - | - | - | 4,206,207 | 4,206,207 | |||||||
Transaction with owners | ||||||||||||
Costs of share options | - | - | 11,689 | - | 11,689 | |||||||
- | - | 11,689 | - | 11,689 | ||||||||
At 31 December 2009 | 1,396,060 | 261,682 | 256,052 | 5,740,221 | 7,564,015 | |||||||
Total comprehensive income | ||||||||||||
Profit for the period ended 30 June 2010 | - | - | - | 122,284 | 122,284 | |||||||
Transaction with owners | ||||||||||||
Cost of share options | - | - | 21,158 | - | 21,158 | |||||||
- | - | 21,158 | - | 21,158 | ||||||||
At 30 June 2010 | 1,396,060 | 261,682 | 277,210 | 5,862,505 | 7,797,457 | |||||||
Total comprehensive income | ||||||||||||
Loss for the period ended 31 December 2010 | - | - | - | (1,586,403) | (1,586,403) | |||||||
Transaction with owners | ||||||||||||
Cost of share options | - | - | 21,507 | - | 21,507 | |||||||
- | - | 21,507 | - | 21,507 | ||||||||
At 31 December 2010 | 1,396,060 | 261,682 | 298,717 | 4,276,102 | 6,232,561 | |||||||
CONDENSED STATEMENT OF CASH FLOWS | ||||||||||||
FOR THE PERIOD ENDED 31 DECEMBER 2010 | ||||||||||||
(Expressed in United Kingdom Sterling) | ||||||||||||
Six months ended | Six months ended | Year ended | ||||||||||
31 Dec 2010 | 31 Dec 2009 | 30 June 2010 | ||||||||||
(unaudited) | (audited) | (audited) | ||||||||||
Notes | £ | £ | £ | |||||||||
Net cash outflows from operating activities | 1 | (127,956) | (775,438) | (259,283) | ||||||||
Purchase of investments | (1,024,785) | (1,468,924) | (1,874,656) | |||||||||
Sale of investments | 2,083,991 | 1,588,508 | 3,772,179 | |||||||||
Interest received | 3,275 | 1,299 | 3,703 | |||||||||
Net cash generated from investing activities | 1,062,481 | 120,883 | 1,901,226 | |||||||||
Net increase/(decrease) in cash and cash equivalents | 934,525 | (654,555) | 1,641,943 | |||||||||
Cash and cash equivalents at the beginning of the period | 2,515,599 | 873,656 | 873,656 | |||||||||
Cash and cash equivalents at the end of the period | 3,450,124 | 219,101 | 2,515,599 | |||||||||
NOTES TO THE UNAUDITED INTERIM RESULTS | ||||||||||||
FOR THE PERIOD ENDING 31 DECEMBER 2010 | ||||||||||||
1 | Cash flow statement | |||||||||||
Reconciliation of net cash flow from the operating activities | ||||||||||||
Six months ended | Six months ended | Year ended | ||||||||||
31 Dec 2010 | 31 Dec 2009 | 30 June 2010 | ||||||||||
(unaudited) | (audited) | (audited) | ||||||||||
Total comprehensive (loss)/profit for the period | (1,586,403) | 4,206,207 | 4,328,491 | |||||||||
Adjustment for interest income | (3,275) | (1,299) | (3,703) | |||||||||
Adjustment for net loss/(gain) on investments at fair value through profit or loss | 2,880,250 | (4,209,624) | (3,046,569) | |||||||||
Adjustment for costs attributable to share re options | 21,507 | 11,689 | 32,846 | |||||||||
Adjustments for realised gains on investments at fair value through profit or loss | (1,466,481) | (137,174) | (1,612,003) | |||||||||
Dreasece/(increase) in prepayments and accrued income | 2,261 | (621,881) | 3,525 | |||||||||
Increase/(decrease) in creditors and accrued expenses | 24,185 | (23,356) | 38,130 | |||||||||
Net cash (outflow) from operating activities | (127,956) | (775,438) | (259,283) | |||||||||
2 | Investments | |||||||||||
Six months ended | Six months ended | Year ended | ||||||||||
31 Dec 2010 | 31 Dec 2009 | 30 June 2010 | ||||||||||
(unaudited) | (audited) | (audited) | ||||||||||
£ | £ | £ | ||||||||||
Desire PLC, at market value | 1,217,625 | 4,416,000 | 3,306,600 | |||||||||
Cost, 2.55 million shares | 1,115,171 | 1,149,501 | 1,080,826 | |||||||||
(31 December 2009: 4.8million, 30 June 2010: 3.674 million shares) | ||||||||||||
Sterling Energy, at market value | 1,263,750 | 2,535,513 | 2,178,750 | |||||||||
Cost, 1.5 million shares | 2,589,192 | 2,823,625 | 2,589,192 | |||||||||
(31 Dec 2009: 1.636 million, 30 June 2010: 1.5 million shares) | ||||||||||||
Argos Resources Limited, at market value | 531,000 | - | - | |||||||||
Cost, 1.2 million shares | 372,930 | - | - | |||||||||
(30 June 2010: nil) | ||||||||||||
Total market value | 3,012,375 | 6,951,513 | 5,485,350 | |||||||||
Total cost | 4,077,293 | 3,973,126 | 3,670,018 | |||||||||
Current year movement | (1,064,918) | 2,978,387 | 1,815,332 | |||||||||
Reverse prior year FV adjustment | (1,815,332) | 1,231,237 | 1,231,237 | |||||||||
Current period income statement impact | (2,880,250) | 4,209,624 | 3,046,569 | |||||||||
Contacts
Paul R. Anderson, Westmount Energy Limited Tel 01534 814209
Elizabeth Bowman, Nomad and Broker, Cenkos Securities plc Tel 020 7397 8928