Westmount Engy. Regulatory News (WTE)

26 Mar 2007 15:16

Westmount Energy Limited26 March 2007 26 March 2007 CONTACTS: Westmount Energy Limited Tel: 01534 814209Paul Anderson, Director Ruegg & Co Limited Tel: 020 7584 3663Gavin BurnellBrett Miller PRESS RELEASE WESTMOUNT ENERGY LIMITEDINTERIM RESULTS FOR THE SIX MONTHSENDED 31 DECEMBER 2006 The Board of Westmount Energy Limited ("the Company") today announces theinterim results of the Company for the six months ended 31 December 2006. Note for Editors: Westmount Energy Limited ("Westmount") is a Jersey based AIM quoted EnergyInvestment Company. Its present investments include, 30,000,000 shares of AIMquoted Sterling Energy plc, 5,500,000 shares of AIM quoted Desire Petroleum plc,37,622,687 shares of AIM quoted CDS Oil & Gas Group plc and 244,000 shares ofpresently unquoted Eclipse Energy UK plc. Westmount has no borrowings. Copies of the interim results will be available from the offices of Ruegg & CoLimited, 39 Cheval Place, London SW7 1EW for a period of one month from today'sdate. CHAIRMAN'S INTERIM REVIEW The results for the six months ended 31 December 2006 show a loss of £91,090versus a profit of £4,050,578 (restated following the introduction of FRS 20:Share Based Payment), after taxation for the six months ended 31 December 2005. Following the death of Westmount's Chairman Mr Derek G Williams on 19 January2007, steps have been taken to review the composition of the Board, and as aresult, the Board is pleased to have recently announced the appointment of AlanLevison as a director and as Chairman of the Board with effect from 17 March2007. Alan brings with him 30 years of experience in the oil and gas industry. Heholds a M.Sc. in Petroleum Geology from Imperial College London and has spentthe majority of his career in Chevron and BG in senior management roles. Inrecent years Alan has served on the boards of Fusion Oil and Gas plc, SterlingEnergy plc and is currently serving on the board of Eclipse Energy UK plc, whereWestmount holds a significant equity interest. The re-constituted Board is undertaking a detailed review of Westmount'sstrategy in relation to both existing investments as well as other opportunitieswhich may exist or which may arise, to enhance the value per share for thebenefit of shareholders. On 8 February 2007, Eclipse Energy UK plc ("Eclipse"), the low carbon energycompany, announced that it had been granted consent to construct and operate theOrmonde offshore wind farm and to generate and export electricity from theadjacent Ormonde Gas Fields development by the UK Government. This consentcompletes the series of principal permissions necessary to construct the world'sfirst co-development of offshore gas and wind energy in the East Irish Sea. When constructed, Ormonde is expected to be able to generate up to 200 MW ofelectricity from gas turbines and a dedicated offshore wind farm of 30 turbines.The project which anticipates the first energy to be produced in 2009, will beable to supply the equivalent of three quarters of Cumbria's domestic localgenerating demand which is enough energy to power over 155,000 homes, theequivalent of which 71,000 would be powered by renewable energy, and which willsave up to 286,000 tons of CO2 per year. The Board believes that as the largestequity shareholder in Eclipse, Westmount is in an excellent position tocapitalise on the potential next stages in Eclipse's development. On 8 January 2007, the £500,000 Convertible Loan to AIM quoted CDS Oil & GasGroup plc ("CDS"), together with accrued interest of £36,123.29, was convertedinto equity and Westmount subscribed for 37,622,687 shares in CDS. Westmount nowhas a 9.79% interest in the enlarged share capital of CDS. In addition to its interests in Eclipse and CDS, Westmount holds 30,000,000shares of AIM quoted Sterling Energy plc and 5,500,000 shares in AIM quotedDesire Petroleum plc. The Ordinary shares of Westmount (originally of 10p par value) commenced tradingon AIM on 2 October 1995 at 15p. Following a share capital re-organisation andrepurchase of shares by Westmount, there are now 7,425,000 20p Ordinary sharesin issue traded on AIM held by approximately 1,350 shareholders. There are alsoshare options outstanding over 750,000 20p Ordinary Shares exercisable at asubscription price of 103.5p per share, over various periods, expiring 31December 2012. PROFIT AND LOSS ACCOUNT Restated Restated Six months to Six months to Year to 31 December 2006 31 December 2005 30 June 2006 (unaudited) (unaudited) (audited) £ £ £ Turnover - discontinued operations - 1,118 1,118 Operating Costs - - - Surplus on termination ofNorth Sea overriding royalty interest (before taxation) - 1,706,201 1,706,201 Profit on disposal of investments - 3,189,999 3,190,096 Interest Receivable 59,581 73,277 178,238 Administration Expenses (150,671) (452,743) (609,047) ________ ________ ________ Profit/(Loss) on ordinary activities before taxation (91,090) 4,517,852 4,466,606 Taxation - (467,274) (467,274) ________ ________ ________ Profit/(Loss) on ordinary activities after taxation (91,090) 4,050,578 3,999,332 ________ ________ ________ Basic Earnings/(Loss) per ordinary share (1.23)p 26.98p 53.44p Diluted Earnings/(Loss) per ordinary share (1.11)p 49.06p 48.57p The results for both the prior period to 31 December 2005 and the year to 30June 2006 have been restated for the application of Financial Reporting Standard20: Share-based Payment. The 750,000 share options issued on 22 December 2005have been ascribed a fair value of 39.07p each (total cost of £293,025). Thiscost has been accounted for within Administration Expenses in prior periods andan equal Share Option Reserve has been created in Shareholders Funds. STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES Restated Restated Six months to Six months to Year to 31 December 2006 31 December 2005 30 June 2006 (unaudited) (unaudited) (audited) £ £ £ Profit/(Loss) retained for the period (91,090) 4,050,578 3,999,332 Cost of B share issue and consolidation - - (155,895) ________ ________ ________ Total recognised gains and losses relating to the period (91,090) 4,050,578 3,843,437 ________ ________ ________ BALANCE SHEET Restated 31 December 2006 30 June 2006 Note (unaudited) (audited) £ £ FIXED ASSETSInvestments 5,418,141 4,882,017 CURRENT ASSETSDebtors - 505,549Cash at bank 667,366 880,222 _________ ________ 6,085,507 6,267,788 CREDITORSAmounts falling due within one year (148,399) (176,148) _________ ________ TOTAL ASSETS LESS CREDITORS 5,937,108 6,091,640 _________ ________ SHARE CAPITAL AND RESERVES Share Capital 1 1,485,000 1,496,686Share Premium Account 2 668,220 668,220Share Option Account 3 293,025 293,025Capital Redemption Reserve 4 150,134 150,134Profit and Loss Account 5 3,340,729 3,483,575 _________ ________ SHAREHOLDERS' FUNDS 5,937,108 6,091,640___________________ Notes: £ 1. Share Capital - Balance 01.07.2006 1,496,686 Purchase of own shares (11,686) Balance 31.12.2006 1,485,000 2. Share Premium Account - Balance 01.07.2006 668,220 Balance 31.12.2006 668,220 3. Profit and Loss Account - Balance 01.07.2006 - Prior year adjustment - issue of 750,000 share options at 39p fair value 293,025 Adjusted balance 01.07.2006 293,025 Balance 31.12.2006 293,025 4. Capital Redemption Reserve - Balance 01.07.2006 150,134 Balance 31.12.2006 150,134 5. Profit and Loss Account - Balance 01.07.2006 3,776,600 Prior year adjustment - issue of 750,000 share options at 39p fair value (293,025) Adjusted balance 01.07.2006 3,483,575 Loss for 6 months ended 31.12.2006 (91,090) Purchase of own shares (51,756) Balance 31.12.2006 3,340,729 CASH FLOW STATEMENT Six months to Six months to Year to 31 December 2006 31 December 2005 30 June 2006 (unaudited) (unaudited) (audited) £ £ £Net cash inflow/(outflow) fromoperating activities 327,129 (161,479) (325,752) Returns on investment andservicing of finance 59,581 73,277 178,238 Taxation paid - - (500,869) Capital expenditure andfinancial investment (536,123) 9,528,763 9,028,860 ________ ________ ________Cash inflow/(outflow) before financing (149,413) 9,440,561 8,380,477 Financing (63,442) (42,527) (7,535,046) ________ ________ ________ Increase/(decrease) in cash (212,855) 9,398,034 845,431 ________ ________ ________ Reconciliation of cash flow tomovement in net funds/(debt) Increase/(decrease) in cash (212,855) 9,398,034 845,431 Loan advance - - 500,000 Loan repayment (500,000) - - _________ ________ ________ Change in net funds/(debt) resulting from cash flows (712,855) 9,398,034 1,345,431 Net funds brought forward 1,380,222 34,791 34,791 _________ ________ ________ Net funds carried forward 667,367 9,432,825 1,380,222 _________ ________ ________ Represented by:Debtors - - 500,000 Cash at bank 667,367 9,432,825 880,222 _________ ________ ________ Net funds carried forward 667,367 9,432,825 1,380,222 _________ ________ ________ This information is provided by RNS The company news service from the London Stock Exchange