Westmount Engy. Regulatory News (WTE)

26 Mar 2008 11:19

Westmount Energy Limited26 March 2008 26 March 2008 CONTACTS: Westmount Energy Limited Tel: 01534 814209Paul Anderson,Director Ruegg & Co Limited Tel: 020 7584 3663Gavin BurnellBrett Miller PRESS RELEASE WESTMOUNT ENERGY LIMITED INTERIM RESULTS FOR THE SIX MONTHSENDED 31 DECEMBER 2007 The Board of Westmount Energy Limited (the "Company") today announces theinterim results of the Company for the six months ended 31 December 2007. These results will be available to download from the Company's websitewww.westmount-energy.co.uk and will be posted to shareholders today. Note for Editors: Westmount Energy Limited is a Jersey based AIM quoted Energy Investment Company.Its present investments include 30,000,000 shares of AIM quoted Sterling Energyplc, 5,200,000 shares of AIM quoted Desire Petroleum plc and 244,000 shares ofpresently unquoted Eclipse Energy UK plc. The Company has no borrowings.________________________________________________________________________________ SUMMARY AND OBJECTIVE The condensed information contained in this unaudited half-yearly financialreport has been prepared in accordance with pronouncements on interim reportingissued by the Accounting Standards Board (ASB). The information has beenprepared on the basis of the accounting policies set out in the company's mostrecent audited annual financial statements for the year ended 30 June 2007. CHAIRMAN'S HALF-YEAR REVIEW I trust you will have seen the announcement earlier this month of theresignation of our previous Chairman Alan Levison who due to other commitmentscould no longer continue his role as Chairman and Director of our company. Iwould like to thank Alan for his contribution to the company and wish him wellfor the future. The six months under review reflect the change of direction forecast by mypredecessor's statement issued with the Annual Report and Accounts in November2007 wherein we indicated that we would be concentrating on managing ourinvestments for realisation so as to create value for our shareholders. We thus took the opportunity in September 2007 to dispose of our holding of3,762,268 shares in CDS Oil and Gas at 22p per share which resulted in a netcash profit for the company after all costs of £289,071 and added £825,194 toour Treasury Funds. This is especially welcome considering the financialuncertainty and volatility of the current financial markets. As we had the extra liquidity, we took advantage of the weakness of our shareprice, and bought back for cancellation 315,500 ordinary shares at an averageprice of 79p inclusive of all costs for £249,309. The net asset value of thecompany at the time of purchase was 116p and it thus made good commercial senseto once more initiate the Share Buy Back plan. We have been disappointed with the share price performance of our holding inSterling Energy but we nevertheless believe that the next six months should seeresults from the drilling programs being initiated that will further improve theflow rate of the Chinquetti field in Mauritania and the already announceddrilling programme for the Gulf of Mexico. We would also hope to receive furthernews on the exploration portfolios in the Gabon, Kurdistan and Madagascar. Eclipse Energy has recently published a Memorandum of Information seekinginvestment partners to develop its Wind Farm and Gas Fields known as the Ormondeproject offshore Barrow in Furness in the Irish Sea. The results of this are dueto be published in the next few months and at that stage we will be able to moreclearly formulate an opinion as to the increase in value of our holding, and theplans that Eclipse Energy Board will be considering to further develop theirassets creating increased value for their shareholders. Our last remaining holding, and indeed the very first investment made by ourlate Chairman Derek Williams, Desire Petroleum Plc is at last moving towards adrilling programme in the Falkland Island Basin and they announced in February2008 that a Farm In agreement has been signed with a major oil company to drilltwo wells. This is extremely encouraging news and has been reflected in theincrease in the Desire share price which we took advantage of and sold 300,000ordinary shares at a price of 77.79 per share. We await further news on thisdevelopment. It remains your Board's intention to realise value from the investment portfolioas and when the opportunities arise, and to return capital to shareholders. Mervyn Bradlow Chairman 26 March 2008 CONDENSED PROFIT AND LOSS ACCOUNT(Expressed in United Kingdom Sterling) Six months ended Six months ended Year ended 31 December 2007 31 December 2006 30 June 2007 (unaudited) (unaudited) (audited) £ £ £Administrative expenses (168,381) (150,671) (436,410)Profit on disposal of investments 289,072 - -Interest Receivable 21,306 59,581 72,487 Net profit/(loss) on ordinary activities before taxation 141,997 (91,090) (363,923) Taxation - - - Profit/(loss) for the period 141,997 (91,090) (363,923) Basic earnings per share 1.92p (1.23)p (4.89)pDiluted earnings per share 1.92p (1.11)p (4.89)p STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES(Expressed in United Kingdom Sterling) Six months to Six months to Year to 31 December 2007 31 December 2006 30 June 2007 (unaudited) (unaudited) (audited) £ £ £Profit/(loss) retained for the period 141,997 (91,090) (363,923) Total recognised gains and lossesrelating to the period 141,997 (91,090) (363,923) Prior period adjustment - - (143,664) Total profit/(loss) recognised since last annual report 141,997 (91,090) (507,587) CONDENSED BALANCE SHEET(Expressed in United Kingdom Sterling) 31 December 2007 30 June 2007 Note (unaudited) (audited) £ £FIXED ASSETSInvestments 4,882,017 5,418,141 CURRENT ASSETSDebtors 9,159 5,824Cash at bank 1,033,142 540,609 1,042,301 546,433 CREDITORS amounts falling duewithin one year (116,597) (143,341) NET CURRENT ASSETS 925,704 403,092 TOTAL ASSETS LESS CURRENTLIABILITIES 5,807,721 5,821,233 SHARE CAPITAL AND RESERVESShare Capital 1 1,443,900 1,488,000Share Premium Account 2 550,787 679,469Share Option Account 3 242,686 225,413Capital Redemption Reserve 4 210,570 166,470Profit and Loss Account 5 3,359,778 3,261,881 SHAREHOLDERS' FUNDS 5,807,721 5,821,233 Notes to the condensed balance sheet: £ 1. Share Capital -Balance 01.07.2007 1,488,000Purchase of 220,500 own shares of 20p (44,100)Balance 31.12.2007 1,443,900 2. Share Premium Account -Balance 01.07.2006 and 31.12.2007 679,469Purchase of 220,500 own shares of 20p (128,682)Balance 31.12.2007 550,787 3. Share Option Account -Balance 01.07.2007 225,413Costs attributable to period 17,272Balance 31.12.2007 242,685 4. Capital Redemption Reserve -Balance 01.07.2007 166,470Purchase of 220,500 own shares of 20p 44,100Balance 31.12.2007 210,570 5. Profit and Loss Account -Balance 01.07.2007 3,261,881Profit for 6 months ended 31.12.2007 141,997Purchase of 220,500 own shares of 20p (44,100)Balance 31.12.2007 3,359,778 CONDENSED CASH FLOW STATEMENT Six months to Six months to Year to 31 December 2007 31 December 2006 30 June 2007 (unaudited) (unaudited) (audited) £ £ £Net cash (outflow)/inflow fromoperating activities (Note 1) (181,188) 327,129 (326,654) Returns on investment andservicing of finance 21,307 59,581 36,234 Taxation - - - Capital expenditure andfinancial investment 825,195 (536,123) - Cash inflow/(outflow) before financing 665,314 (149,413) (290,420) Financing (172,782) (63,442) (49,193) Increase/(decrease) in cash 492,532 (212,855) (339,613) Reconciliation of cash flow tomovement in net funds/(debt) Increase/(decrease) in cash 492,532 (212,855) (339,613) Loan repayment - (500,000) - Change in net funds/(debt) resultingfrom cash flows 492,532 (712,855) (339,613) Conversion of loan to equity investment - - (500,000) Movement in net funds in the year 492,532 (712,855) (839,613) Net funds brought forward 540,609 1,380,222 1,380,222 Net funds carried forward 1,033,141 667,367 540,609 Represented by:Cash at bank 1,033,141 667,367 540,609 Net funds carried forward 1,033,141 667,367 540,609 Note to the cash flow statement: 1. Reconciliation of net operating loss to net cash flow outflow from operatingactivities - £Administrative expenses (168,381)Cost attributable to issue of share options 17,272(Decrease) in prepayments and accrued income (3,335)(Decrease) in creditors and accrued expenses (26,744)Net cash outflow from operating activities (181,188) This information is provided by RNS The company news service from the London Stock Exchange