Last checked at 31 Mar 2017 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 2016. 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 continued to be a challenging and uncertain time for the Oil & Gas industry but there were continued signs of improvement.
From a Westmount perspective, the more stable oil price and improved investor sentiment towards the E&P sector has given rise to some opportunities which should enable the process of repositioning your Company as a niche exploration and production investor in the conventional oil and gas sector.
We have identified the Guyana offshore basin as an area of interest and in line with our strategy, on February 8, 2017, we announced a £500k strategic investment in Eco (Atlantic) Oil & Gas Ltd ("EOG") at a price of 16 pence per ordinary share as part of the EOG IPO on AIM.
EOG successfully raised GBP5.09 million in an oversubscribed placing, which is further evidence of the improvement in investor sentiment and interest in ECO's Guyanese and Namibian exploration permits. Westmount holds 2.6% approximately of EOG's issued share capital and EOG is the only junior E&P company listed on AIM with exposure to offshore Guyana, which is emerging as a major oil province.
The primary motive for the investment in EOG was to offer Westmount shareholders a low entry cost exposure to the 1,800 km2 Orinduik offshore block in the Guyana basin. The Orinduik block is operated by Tullow Oil Plc and is adjacent to, and updip of, the Stabroek Block operated by ExxonMobil. Stabroek contains the world-class Liza & Payara oil discoveries, which are estimated by ExxonMobil to have recoverable resources of approximately 1.4 - 2 billion boe. ExxonMobil is currently drilling the Snoek exploration well which is also located a short distance from the Orinduik block and well results are expected shortly. I expect to see significant exploration activity in the region over the coming years and would like to expand Westmount's interest in this exciting exploration region.
The Interim Financial Statements show a loss for the period of £136,164 of which £38,368 relates to a write down of the value of the portfolio.
Portfolio
The recent addition of the investment in ECO (Atlantic) Oil & Gas Ltd ('EOG') has transformed the portfolio.
We continue to hold our legacy investments with exposure to the Falkland Islands, namely Rockhopper and Argos. The share price performance of these holdings continues to be in line with weak oil prices. We have recently disposed of the remaining holding of Sterling Energy Plc for re investment in EOG.
FUTURE
The Board has carefully assessed the cash position of the Company and believes that the corporate overhead has been reduced as much as possible at the current time. The Board continues to believe that the current Westmount corporate structure and AIM listing provides an ideal platform to leverage on new investment opportunities or provide a vehicle for corporate transactions.
Westmount continues to seek and evaluate corporate transactions and investment opportunities with a focus on the Guyana offshore area. The Board would expect to finance any future corporate transactions via the AIM market platform.
Finally, I thank our shareholders and stakeholders for their continued support.
GERARD WALSH
Chairman
30 March 2017
For further information, please contact:
Westmount Energy Limited | www.westmountenergy.com | |
David King, Director
| Tel: +44 (0)1534 823028 | |
Cenkos Securities plc Nomad and Broker | Tel: +44 (0)20 7397 8900 | |
Nicholas Wells / Elizabeth Bowman (Corporate Finance) | ||
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2016
Six months ended 31 Dec 2016 (unaudited) £ | Six months ended 31 Dec 2015 (unaudited) £ | Year ended 30 Jun 2016 (audited) £ | |||
Net loss on financial assets held at fair value through profit or loss | (38,368) | (284,950) | (260,911) | ||
Administration expenses | (97,796) | (77,857) | (173,112) | ||
Operating loss | (136,164) | (362,807) | (434,023) | ||
Loss before tax | (136,164) | (362,807) | (434,023) | ||
Tax | - | - | |||
Comprehensive loss for the period / year | (136,164) | (362,807) | (434,023) | ||
Basic loss per share (pence) | (0.01) | (0.02) | (2.59) | ||
Diluted loss per share | (0.01) | (0.02) | (2.59) |
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 2016
31 Dec 2016 (unaudited) £ | 31 Dec 2015 (unaudited) £ | 30 Jun 2016 (audited) £ | |||
ASSETS | |||||
Non-current assets | |||||
Financial assets at fair value through profit or loss | 239,205 | 192,261 | 216,299 | ||
Current assets | |||||
Other receivables | 5,468 | 9,451 | 10,023 | ||
Cash and cash equivalents | 234,516 | 494,245 | 402,716 | ||
239,984 | 503,696 | 412,739 | |||
Total assets | 479,189 | 695,957 | 629,038 | ||
LIABILITIES AND EQUITY | |||||
Current liabilities | |||||
Trade and other payables | 17,702 | 27,090 | 31,387 | ||
EQUITY | |||||
Share capital | 3,027,221 | 3,027,221 | 3,027,221 | ||
Share option account | 349,906 | 349,906 | 349,906 | ||
Retained earnings | (2,915,640) | (2,708,260) | (2,779,476) | ||
Total equity | 461,487 | 668,867 | 597,651 | ||
Total liabilities and equity | 479,189 | 695,957 | 629,038 | ||
CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2016
| 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 | - | - | - | (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) | - | - | - |
As at 30 June 2016 | 3,027,221 | - | 349,906 | (2,779,476) | 597,651 |
Total Comprehensive Income |
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Loss for the period ended 31 December 2016 | - | - | - | (136,164) | (136,164) |
As at 31 December 2016 | 3,027,221 | - | 349,906 | (2,915,640) | 461,487 |
| 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 |
CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2016
Six months ended 31 Dec 2016 (unaudited) £ | Six months ended 31 Dec 2015 (unaudited) £ | Year ended 30 Jun 2016 (audited) £ | ||||
Cash flows from operating activities | ||||||
Total comprehensive loss for the period / year | (136,164) | (362,807) | (434,023) |
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Adjustments for net loss on financial assets at fair value through profit or loss | 38,368 | 284,949 | 260,911 |
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Decrease / (increase) in other receivables | 4,556 | 270 | (302) |
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Decrease in trade and other payables | (13,685) | (4,670) | (373) |
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Purchase of investments | (61,275) | - | - |
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Proceeds from sale of investments | - | 59,611 | 59,611 |
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Net cash out flow from operating activities | (168,200) | (22,647) | (114,176) |
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Cash flows from financing activities |
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Proceeds from issue of ordinary shares | - | 509,601 | 509,601 |
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Net cash generated from financing activities | - | 509,601 | 509,601 |
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Net increase / (decrease) in cash and cash equivalents | (168,200) | 486,954 | 395,425 |
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Cash and cash equivalents at the beginning of the period / year | 402,716 | 7,291 | 7,291 |
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Cash and cash equivalents at the end of the period / year | 234,516 | 494,245 | 402,716 |
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NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2016
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 2016. 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 2016.
2. Investments
Six months ended 31 December 2016 | Six months ended 31 December 2015 | Year ended 30 June 2016 | ||||||
(unaudited) | (unaudited) | (audited) | ||||||
£ | £ | £ | ||||||
Sterling Energy PLC, at market value | 45,000 | 43,500 | 45,750 | |||||
Cost, 300,000 shares | 517,838 | 517,838 | 517,838 | |||||
(31 December 2015: 300,000 shares, 30 June 2016: 300,000 shares) | ||||||||
Argos Resources Limited, at market value | 45,000 | 45,000 | 37,500 | |||||
Cost, 1,000,000 shares | 310,775 | 310,775 | 310,775 | |||||
(31 December 2015: 1,000,000 shares, 30 June 2016: 1,000,000 shares) | ||||||||
Falkland Oil and Gas Limited ("Falkland"), at market value | - | 99,318 | - | |||||
Cost, nil shares | - | 799,081 | - | |||||
(31 December 2015: 1,196,600 shares, 30 June 2016: nil shares) | ||||||||
Rockhopper Exploration plc ("Rockhopper"), at market value | 81,477 | - | 128,036 | |||||
Cost, 358,142 shares | 799,081 | - | 799,081 | |||||
(31 December 2015: nil shares, 30 June 2016: 358,142 shares) | ||||||||
Pancontinental Oil and Gas NL ("Pancontinental"), at market value |
7,032 | 4,443 | 5,013 | |||||
Cost, 3,000,000 shares | 393,246 | 393,246 | 393,246 | |||||
(31 December 2015: 3,000,000 shares, 30 June 2016: 3,000,000 shares) | ||||||||
JHI Associates Inc ("JHI"), at market value | 60,696 | - | - | |||||
Cost, 100,000 shares | ||||||||
(31 December 2015: nil shares, 30 June 2016: nil shares) | 61,274 | - | - | |||||
Total market value | 239,205 | 192,261 | 216,299 | |||||
Total cost | 2,082,214 | 2,020,940 | 2,020,940 | |||||
Current period movement | (1,843,009) | (1,828,679) | (1,804,641) | |||||
Reverse prior year FV adjustment | 1,804,641 | 1,651,067 | 1,651,067 | |||||
(38,368) | (177,612) | (153,574) | ||||||
Realised (loss) | - | (107,337) | (107,337) | |||||
Unrealised (loss)/gain | (38,368) | (177,612) | (153,574) | |||||
Current period income statement impact | (38,368) | (284,949) | (260,911) | |||||
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This announcement contains inside information.