Westmount Engy. Regulatory News (WTE)

29 Mar 2005 11:09

Westmount Energy Limited29 March 2005 CONTACTS: Westmount Energy Limited Tel: 01534 814209Derek G. Williams, Chairman Oriel Securities Limited Tel: 020 7710 7600Andrew EdwardsScott Richardson Brown Merlin Tel: 020 7653 6620Paul Downes / Tom Randell 29 March 2005 WESTMOUNT ENERGY LIMITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2004 The Board of Westmount Energy Limited ("the Company") today announces theinterim results of the Company and its subsidiary for the six months ended 31December 2004. Highlights are as follows: • Turnover of £60,090 (2003: £69,342). • Loss after tax of £91,690 (2003: Net profit after tax of £6,556,561). • Loss per share of 0.61p (2003: Earnings per share of 47.85p). • As no investments were sold in the six months period ended 31 December 2004, no benefit has been included in the results from investment activities. Profits are brought into account when realised. (2003 includes profit of £6,635,500 from the sale of the Company's subsidiary undertaking, Westmount Resources Limited). • The market value of the Company's two AIM quoted investments, Sterling Energy plc and Desire Petroleum plc on 31 December 2004 totalled £14,572,500 compared with a carrying book value of £8,890,469, showing an unrealised gross surplus on that date of £5,682,031. Attached: Full text of the Chairman's Interim Review from the forthcomingInterim Report, including the Consolidated Profit and Loss Account, ConsolidatedBalance Sheet and Consolidated Cash Flow Statement.Note: Westmount Energy Limited is a Jersey, Channel Islands, based independentoil and gas investment company with its shares traded on AIM of which there arepresently 15,013,361 fully paid shares in issue held by some 1,600 shareholders.No share options are currently outstanding. Copies of this Press Release will be available from the offices of OrielSecurities Limited, 4 Wood Street, London EC2V 7JB for a period of one monthfrom today's date. Registered in Jersey, Channel Islands. No. 53623 CHAIRMAN'S INTERIM REVIEW For the six months ended 31 December 2004 the Group sustained a loss on ordinaryactivities before taxation of £80,786 (£91,690 loss after taxation). Thiscompares with a net profit before taxation of £6,569,071 (£6,556,561 net profitafter taxation) in the previous period. Turnover for the period under review,arising from the Group's 0.5 percent overriding royalty interest in LicenceP241, North Sea, totalled £60,090, compared with £69,342 for the same periodlast year. Production from the Buchan Oilfield within Licence P241 for the sixmonths ended 31 December 2004 totalled 999,780 barrels compared with 1,212,801barrels for the same period in the previous year. It is expected the newdiscovery, Tweedsmuir, also located within Licence P241, will commence producingoil, with Talisman as operator, in late 2006. The Group profit in the same period last year arose from the sale of theCompany's subsidiary undertaking, Westmount Resources Limited, including itsWest African assets, to AIM quoted Sterling Energy plc ("Sterling"). Sterlingnow has two principal geographical areas of operation, namely production in theGulf of Mexico and exploration and development offshore West Africa. The Group invests principally in companies which hold the possibility ofconsiderable capital growth on the funds invested. Profits are only brought toaccount when an investment is sold. The Group's investments continue to performwell. The market value of the Group's two AIM quoted investments, namely,Sterling and Desire Petroleum plc ("Desire") at 31 December 2004 totalled£14,572,500 compared with a carrying book value of £8,890,469, showing anunrealised gross surplus on that date of £5,682,031. Since 31 December 2004 the Group has sold 5 million of its shares in Sterlingand the Group's shareholding in Sterling now stands at 70 million shares. Theproceeds were utilised in repaying the Group's Bank Loan and the Group is nowdebt free. The Group continues to hold 5.5 million shares of Desire. Through thisinvestment the Group has a continuing interest in Desire's exploration offshorethe Falkland Islands. Desire has recently completed an issue of new shares at45p each to raise approximately £24.4 million. Desire intends to utilise theproceeds to conduct a three-well exploration drilling programme on Tranches Cand D in the North Falkland Basin. The remaining significant event to report is the further progress with theGroup's investment in unquoted Eclipse Energy Company Limited ("Eclipse").Eclipse continues with the planning of its Ormonde hybrid wind and natural gaspowered electricity generation project in the East Irish Sea. The Groupsubscribed for an additional 100,000 shares of Eclipse with effect from 31December 2004 at £5 per share, thereby increasing its shareholding to 230,000shares, in consideration of the satisfaction and discharge of £500,000 of theoutstanding loan which amounted to £599,477 as at 31 December 2004. The standingin cost of this total share investment is £630,000. Eclipse is now raisingapproximately £5 million by way of a placing of new shares at £7.50 per share.The Group has agreed to subscribe in the placing for additional shares at theplacing price of £7.50 per share in satisfaction of the remaining principalindebtedness of £99,477 and accrued interest since 1 January 2005. Eclipseexpects Ormonde Project Consent in Quarter 4 2005 with first production Quarter2 2007. The shares in Westmount Energy Limited commenced trading on AIM on 2 October1995 at 15p. The middle market closing share price on 31 December 2004 was 88.5p(31 December 2003: 48.5p). There are presently 15,013,361 fully paid shares inissue held by approximately 1,600 shareholders. No share options are currentlyoutstanding. Derek G. Williams Chairman 29 March 2005 CONSOLIDATED PROFIT AND LOSS ACCOUNT Six months to Six months to Year to 31 December 2004 31 December 2003 30 June 2004 (unaudited) (unaudited) (audited) £ £ £ Turnover 60,090 69,342 137,092 Operating costs (4,411) (5,351) (10,576) _______ _______ _______ Operating profit beforeadministration expenses 55,679 63,991 126,516 Administration expenses (132,152) (128,479) (277,235) Profit on disposal ofsubsidiaryundertaking - 6,635,500 6,635,500 Profit on disposal ofinvestments - - 123,931 Interest and similar feesreceivable 24,670 72,066 94,417 Bank loan interest and chargespayable (28,983) (74,007) (150,428) ________ ________ ________ (Loss) Profit on ordinaryactivities beforetaxation (80,786) 6,569,071 6,552,701 Taxation (10,904) (12,510) (3,476) ________ ________ ________ (Loss) Profit on ordinary activities after taxation (91,690) 6,556,561 6,549,225 ________ ________ ________ (Loss) Earnings perordinary share (0.61p) 47.85p 45.62p CONSOLIDATED BALANCE SHEET 31 December 2004 30 June 2004 (unaudited) (audited) £ £ FIXED ASSETS Tangible fixed assets 34,078 38,490Investments 9,520,469 9,020,469 ________ ________ 9,554,547 9,058,959 CURRENT ASSETS Debtors 153,211 762,839Cash at Bank 82,868 39,695 ________ ________ 236,079 802,534 CREDITORS Amounts falling due within one year: Bank Loan (795,434) (764,174)Other (58,154) (68,591) ________ ________ (853,588) (832,765) ________ ________ NET ASSETS 8,937,038 9,028,728 ________ ________ SHARE CAPITAL AND RESERVES Equity share capital 1,501,336 1,501,336Share premium account 974,248 974,248Profit and loss account 6,461,454 6,553,144 ________ ________ EQUITY SHAREHOLDERS' FUNDS 8,937,038 9,028,728 ________ ________ CONSOLIDATED CASH FLOW STATEMENT Six months to Year to 31 December 2004 30 June 2004 (unaudited) (audited) £ £ Net cash outflow from operating activities (94,126) (136,989) Returns on investment and servicing offinance 95,424 707 Taxation paid - (19,832) Capital expenditure and financial investment - 208,306 Disposals - (66,244) _______ _______ Cash inflow (outflow) before financing 1,298 (14,052) Financing 41,875 - _______ _______ Increase (decrease) in cash 43,173 (14,052) _______ _______ Reconciliation of cash flow to movement in netdebt Increase (decrease) in cash 43,173 (14,052) _______ _______ Change in net debt resulting from cash flows 43,173 (14,052) Non-cash movements in debt (602,015) (57,019) _______ _______ Movement in net debt (558,842) (71,071) Net (debt) funds brought forward (54,247) 16,824 _______ _______ Net debt carried forward (613,089) (54,247) _______ _______ This information is provided by RNS The company news service from the London Stock Exchange