Westmount Engy. Regulatory News (WTE)

WESTMOUNT ENERGY LIMITED

CHAIRMAN'S REVIEW

The past year has been difficult for the company, the junior oil and gas sector remained out of favour. Valuations and share prices have continued to fall, which has been reflected in the valuation of our portfolio of exploration shares. However there are some signs that the cycle could be bottoming out. The oil price remains strong, the industry has plenty of cash, major stock markets have been strong and there have been a number of IPOs in the oil & gas sector in recent months. There has been an increase in corporate activity, including the recent transaction between Falklands Oil & Gas and Desire Petroleum, both shares were held in the portfolio.

In line with our stated strategy, your board continued to look for an acquisition that would create value for shareholders. A large part of the year has been taken up with a specific proposal, outside the resource sector, that the majority of your board believed could have delivered significant value to shareholders.

The proposal did not come to fruition.

Westmount Energy Limited remains a highly attractive, Jersey based, investment vehicle quoted on AIM. The company is well positioned to evaluate and take advantage of new investment opportunities should they hold value creating potential for shareholders. The board together with our advisors continue to seek a suitable strategic acquisition, primarily but not exclusively within the resource sector where the board has core experience.

Finally, following my recent appointment as chairman, I would thank Mervyn Bradlow for his services to the company as chairman over many years, he remains a director of the company.

Gerard Walsh

26 March 2014

WESTMOUNT ENERGY LIMITED

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 DECEMBER 2013

(Expressed in United Kingdom Sterling)

Six months ended

Six months ended

Year ended

31 Dec 2013

31 Dec 2012

30 June 2013

(unaudited)

(unaudited)

(audited)

£

£

£

Realised gain on disposal of investments

- 

69,043

69,043

Unrealised gain/(loss) on financial assets at fair value through

profit or loss

88,305

(328,260)

(627,157)

Administration expenses

(69,873)

(120,157)

(196,977)

Operating gain/(loss)

18,432

(379,374)

(755,091)

Gain/(loss) before tax

18,432

(379,374)

(755,091)

Taxation

-

-

- 

Comprehensive gain/(loss) for the period

18,432

(379,374)

(755,091)

Basic gain/(loss) per share (pence)

0.19

(3.86)

(7.72)

Diluted loss per share (pence)

-

-

-

The Company had no items of other comprehensive income during the period.

WESTMOUNT ENERGY LIMITED

CONDENSED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2013

(Expressed in United Kingdom Sterling)

Six months ended

Six months ended

Year ended

31 Dec 2013

31 Dec 2012

30 June 2013

(unaudited)

(unaudited)

(audited)

£

£

£

ASSETS

Non current assets

Financial assets at fair value through profit and loss

834,480

1,045,072

746,175

Current assets

Trade receivables

4,962

4,892

7,642

Cash and cash equivalents

154,843

300,529

226,565

159,805

305,421

234,207

Total assets

994,285

1,350,493

980,382

LIABILITIES AND EQUITY

Current liabilities

Trade and other payables

85,392

84,315

89,921

EQUITY

Share Capital

1,966,060

1,966,060

1,966,060

Share Premium Account

492,103

497,737

492,103

Share Option Account

293,427

287,793

293,427

Profit and Loss Account

(1,842,697)

(1,485,412)

(1,861,129)

Total equity

908,893

1,266,178

890,461

Total liabilities and equity

994,285

1,350,493

980,382

WESTMOUNT ENERGY LIMITED

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 2012

1,946,060

480,295

305,235

(1,106,038)

1,625,552

Total comprehensive income

Loss for the period ended 31 December 2012

-

-

-

(379,374)

(379,374)

Transaction with owners

Issue of ordinary shares

20,000

-

-

-

20,000 

Premium on shares issued

-

17,442

-

-

17,442 

Realisation of share options

-

-

(17,442)

-

(17,442)

20,000

17,442

(17,442)

-

20,000  

At 31 December 2012

1,966,060

497,737

287,793

(1,485,412)

1,266,178

Total comprehensive income

Profit for the period ended 30 June 2013

-

-

-

-

(375,717)

(375,717)

Transaction with owners

Issue of ordinary shares

-

(5,634)

-

-

(5,634)

Cost of share options

-

-

5,634

-

5,634 

-

(5,634)

5,634

-

- 

At 30 June 2013

1,966,060

492,103

293,427

(1,861,129)

890,461

Total comprehensive income

Gain for the period ended 31 December 2013

-

-

-

18,432 

18,432

At 31 December 2013

1,966,060

492,103

293,427

(1,842,697)

908,893

WESTMOUNT ENERGY LIMITED

CONDENSED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 31 DECEMBER 2013

(Expressed in United Kingdom Sterling)

Six months ended

Six months ended

Year ended

31 Dec 2013

31 Dec 2012

30 June 2013

(unaudited)

(unaudited)

(audited)

Notes

£

£

£

Net cash outflows from operating activities

1

(71,722)

(131,371)

(205,335)

Sale of investments

-

160,429

160,429

Net cash generated from investing activities

-

160,429

160,429

Ordinary shares issued

-

20,000

20,000

Net cash generated in financing activities

-

20,000

20,000

Net (decrease)/increase in cash and cash equivalents

(71,722)

49,058

(24,906)

Cash and cash equivalents at the beginning of the period

226,565

251,471

251,471

Cash and cash equivalents at the end of the period

154,843

300,529

226,565

WESTMOUNT ENERGY LIMITED

NOTES TO THE UNAUDITED INTERIM RESULTS

FOR THE PERIOD ENDED 31 DECEMBER 2013

1

Cash flow statement

Reconciliation of net cash flow from operating activities

Six months ended

Six months ended

Year ended

31 Dec 2013

31 Dec 2012

30 June 2013

(unaudited)

(unaudited)

(audited)

Total comprehensive gain/(loss) loss for the period

18,432

(379,374)

(755,091)

Adjustment for net (gain)/loss on investments at fair value through profit or loss

(88,305)

328,260

627,157

Adjustments for realised loss on investments at fair value through profit or loss

- 

(69,043)

(69,043)

Decrease/(increase) in prepayments and accrued income

2,680

2,538

(212)

Decrease in creditors and accrued expenses

(4,529)

(13,752)

(8,146)

Net cash outflow from operating activities

(71,722)

(131,371)

(205,335)

WESTMOUNT ENERGY LIMITED

NOTES TO THE UNAUDITED INTERIM RESULTS (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2013

2

Investments

Six months ended

Six months ended

Year ended

31 Dec 2013

31 Dec 2012

30 June 2013

(unaudited)

(unaudited)

(audited)

£

£

£

Desire Petroleum PLC, ("Desire") at market value

- 

375,000

237,600

Cost, nil shares

- 

874,643

874,643

(31 December 2012: 2,000,000, 30 June 2013: 2,000,000 shares)

Sterling Energy PLC, at market value

216,250

193,125

176,250

Cost, 500,000 shares

863,064

863,064

863,064

(31 Dec 2012: 500,000, 30 June 2013: 500,000 shares)

Argos Resources Limited, at market value

145,000

247,500

188,800

Cost, 1,000,000 shares

310,775

310,775

310,775

(31 Dec 2012: 1,000,000, 30 June 2013: 1,000,000 shares)

Falkland Oil and Gas Limited ("Falkland"), at market value

374,380

57,000

53,000

Cost, 1,446,600 shares

966,029

91,386

91,386

(31 Dec 2012: 400,000 shares, 30 June 2013: 200,000 shares)

Pancontinental Oil & Gas NL ("Pancontinental"), at market value

98,850

172,447

90,525

Cost, 3,000,000 shares

393,246

393,246

393,246

(31 Dec 2012: 3,000,000 shares, 30 June 2013: 3,000,000 shares)

Total market value

834,480

1,045,072

746,175

Total cost

2,533,114

2,533,114

2,533,114

Current period movement

(1,698,634)

(1,488,042)

(1,786,939)

Reverse prior year FV adjustment

1,786,939

1,159,782

1,159,782

Current period income statement impact

88,305

(328,260)

627,157