REG - Westmount Energy Ld - Final Accounts & Notice of AGM
19/11/2025 07:00
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RNS Number : 0754I Westmount Energy Limited 19 November 2025
19 November 2025
WESTMOUNT ENERGY LIMITED
("Westmount" or the "Company")
Final Results & Notice of AGM
The Company is pleased to announce its Final Results for the year ended 30 June 2025, and hereby gives notice that the Annual General Meeting of Westmount Energy Limited will be held at Floor 4, Liberation House, Castle Street, St Helier, Jersey JE1 4HH, Channel Islands on 12 December 2025 at 11.00.
Copies of the Company's results, Notice of AGM and Proxy Form are available on
the Company's website, www.westmountenergy.com from today.
CHAIRMAN'S REVIEW
2025 Highlights
· Production Licence PL001 North Falklands Basin - Sea Lion FID set
to unlock the basin and provide a catalyst for further exploration; Tyche and
Dinlas prospects - within the same stratigraphic interval as the Sea Lion
discovery - high-graded on 3D seismic, in water depths <500m, each
containing a potential 400 MMbbls recoverable
· Significant value re-alignment of AIM listed Falkland Islands
explorers over the period; Westmount holds an effective 6.24% economic
interest in PL001
· Canje Block, Guyana operator secured a 1-year extension to March
2026; specific guidance on drilling and further licence extension plans not
yet available
· Kaieteur Block -Farm-down process continues, spearheaded by
operator Ratio Petroleum; Stabroek operator, ExxonMobil, returns to appraisal
drilling at Ranger Discovery which is proximal to the Tanager-1 Discovery on
the Kaieteur Block
· Ratio Energy Partnership Ltd. merger discussions with Ratio
Petroleum announced in January 2025 but subsequently suspended until year end
2025
· Orinduik Block - Eco remains engaged in active farmout process
while also evaluating the Jethro and Joe heavy oil discoveries to determine
the appropriate appraisal approach; ExxonMobil announces FID re the adjacent
Hammerhead Discovery, a 150,000 BOPD development targeting first oil in 2029
· Block 3B/4B, South Africa - Eco and Africa Oil Corp 'interest
swap transaction' plus joint farm-down to TotalEnergies and QatarEnergy
completed in advance of South African, Orange Basin, drilling campaign
· Company had cash of £0.281M and listed marketable securities of
£0.153M at Year End, 30 June 2025; no debt
The global energy system continues to be shaped by competing forces as
countries around the world seek to adapt to changing political, technological
and environmental priorities. Against a backdrop of geopolitical tensions,
conflicts in Ukraine and the Middle East, international sanctions plus tariff
and trade uncertainties, electricity demand growth from data centres and AI
businesses - governments have been forced to focus on maintaining secure and
affordable energy supplies, in some cases at the expense of net-zero
aspirations. Global primary energy demand is estimated to have increased by 2%
in 2024 - higher than the average increase for the past ten years(1) -
underpinned by continued steady growth in oil and gas demand - notwithstanding
the massive investment and rapid growth in renewable energies such as wind and
solar during recent years.
The general consensus is that oil and natural gas resources will be needed for
many decades to come with some forecasts indicating that oil and natural gas
will make up more than half of the world's energy supply in 2050. Oil demand
is anticipated to stabilize after 2030, remaining above 100 million barrels
per day through 2050. However, demand for natural gas is forecast to rise by
more than 20% - driven by higher electricity demand in developing
countries(2). Since the 2014 oil price crash upstream capital available for
oil and gas investment has declined abruptly from USD$779 billion per annum,
with investment in 2025 estimated to be around USD$570 billion(3). Oil and gas
production is a depletion business with nearly 90% of this annual investment
in recent years dedicated to offsetting production declines rather than to
meeting demand growth. This implies that modest drops in annual upstream
investment can choke off supply growth. Furthermore, the IEA indicates that
oil and gas field depletion may be progressing faster than previously believed
which suggests that the industry will need to invest more on exploration just
to sustain the current rate of production.
While the longer-term outlook for the E&P sector continues to be positive
the near-term picture with respect to supply/demand balance is uncertain -
with Brent prices retreating in the last year from a peak above $80/bbl to
below $65/bbl in early November 2025. A combination of non-OPEC+ supply growth
and continued unwinding of OPEC+ voluntary cuts point to abundant supply.
Simultaneously, with crude inventory building in China and opportunistic
replenishment of the US SPR underway, economic uncertainty due to tariffs and
realignment of trade relationships is likely to impact economic growth
particularly in SE Asia(4) and hence near-term oil demand.
Nevertheless, exploration for conventional oil and gas resources is likely to
remain a core focus for the energy industry through this rebalancing period.
Disciplined capital allocation while building diversification and optionality
into prospect portfolios is a strategy being deployed by the bigger companies
in the hunt for advantaged barrels that can meet their stringent financial
return thresholds and ESG investment metrics. Westmount's investees remain
well positioned with a diversified portfolio of exploration assets in proven,
prolific, hydrocarbon provinces (North Falkland, Guyana-Suriname and Orange
Basins) which should continue to attract a disproportionate share of global
exploration capital in the coming years.
North Falkland Basin (Falkland Islands)
After a long journey, the North Falkland Basin is on the verge of becoming a
significant hydrocarbon producer with FID on Phase 1 of the 2010 Sea Lion
Discovery expected in Q4 2025. A 'Development Pending' Gross 2C Resource of
over 700 MMbbls indicates that Sea Lion is indeed a giant oil field. Located
in water depths of circa 400 metres, with benign met-ocean conditions, and
with the current phased development plan offering 'life of field' breakeven
costs of $25/bbl, it points to robust economic rewards for stakeholders under
a range of oil price scenarios. In addition, other significant discoveries
within the basin - such as the Johnson (14/5-1) gas-condensate discovery made
in 1998, to the north of the Sea Lion Complex, and the 2015-2016 Isobel-Elaine
(14/20-1 and 14/20-2) oil discovery, to the south of Sea Lion, - suggest the
North Falkland Basin is a prolific hydrocarbon province with the potential for
the discovery of significant additional resources. The continued positive
statements from Navitas with regards to the Sea Lion development and the
recent equity fundraisings by both Navitas and Rockhopper indicate that the
project is on track for FID prior to year end. Achievement of this milestone
should unlock the North Falkland Basin and is likely to be a significant
catalyst for further exploration in the area.
Investee Interests - offshore Falkland Islands
Production Licence PL001 (JHI Associates Inc. - 100%)
On 25 September 2023, Argos Resources Limited ("Argos") announced the
completion of a transaction with JHI which resulted in the acquisition of
operatorship and 100% working interest in North Falklands Basin Production
Licence PL001 by JHI in return for a consideration of 8,467,820 JHI Common
Shares ("the Consideration Shares") and £303,500 in cash. It was stated that
these Consideration Shares would represent approximately 9.3 per cent of the
enlarged share capital of JHI following completion of the transaction.
In November 2024 JHI and the Falkland Islands Government ("FIG") agreed upon a
two-year extension to the second exploration period of the PL001 Production
Licence, until 31 December 2026. At that time, JHI can apply to enter the
third exploration period of ten years, running from 1 January 2027 to 31
January 2036 with a firm commitment to drill one exploration well. Fiscal
terms are benign with 9% royalty and 26% corporation tax.
PL001 is immediately adjacent to the west of Production Licence PL032
containing the Navitas Petroleum/Rockhopper Sea Lion development. PL001 is
located in modest water depths (<500m) and is fully covered by 3D seismic.
JHI's internal estimates indicate a prospect inventory defined on 3D seismic
containing an aggregate 3.1bn bbls of prospective recoverable resources with
an upside of more than 10 bn bbls(5). So far, two oil prospects, Tyche and
Dinlas, have been high-graded within the same stratigraphic interval as the
Sea Lion discovery - each containing a potential 400 MMbbls recoverable(5).
Westmount's shareholding in JHI equates to an effective 6.24% economic
interest in these prospects and the PL001 licence.
Guyana-Suriname Basin (offshore Guyana)
During 2025 Guyana reached the 10-year anniversary of the drilling of the
Liza-1 well its first offshore oil discovery. In that time Guyana has been
transformed from a frontier deepwater exploration opportunity into the
industry's largest new oil province - with circa 11 billion barrels of oil
equivalent discovered recoverable resource - and the world's fastest growing
economy powered by a total of more than USD$60bn in funds committed to the
seven approved offshore projects to date. Against a backdrop of some
intermittent friction with respect to the border with Venezuela, Guyana has
become a significant source of non-OPEC production growth and is about to
become the largest oil producer per capita, globally, later this year. By the
end of H1 2025 the three projects already on stream - Liza Phase 1, Liza Phase
2 and Payara - were producing roughly 650k BOPD in aggregate, significantly
above the gross nameplate capacity of the three installed FPSOs. In August
2025 ExxonMobil announced the start-up of production at Yellowtail, the
largest development to date with an initial annual average production of 250k
BOPD - bringing total installed capacity offshore Guyana to over 900k BOPD. In
addition, with the Uaru (250k BOPD, start-up 2026), Whiptail (250k BOPD,
start-up late 2027) and the recently sanctioned Hammerhead (150k BOPD,
start-up 2029) projects progressing through development, Guyana remains on
track to have a total production capacity of 1.7 BOEPD from eight developments
by 2030(6).
While drilling of development wells for sanctioned projects continues to
dominate, a reduction in the drillship fleet from six to five ships for much
of the period points to a reduced level of exploration and appraisal drilling
activity throughout 2024 and into 2025. With drilling exclusively focused on
the Stabroek Block, fewer exploration wells were reported during the period
with Bluefin-1 (60m hydrocarbon bearing - the sole discovery during 2024), and
Hamlet-1 (results not reported) both drilled in the southeast of the block.
Some hub class prospects were also evaluated during this period, in a
relatively undrilled area to the northwest of the initial Liza discovery, with
the drilling of Trumpetfish-1 (unsuccessful) and Redmouth-1, Redmouth-1A
(results not reported). In contrast, significant appraisal drilling/testing
operations were reported during the period at Lau Lau-2, Barreleye-2,
Lukanani-2, Haimara-3, -4 - with the latter wells targeting the more gas rich
resources in the southeast of the block. In September 2025 it was reported
that the Stabroek partners had returned to the 2018 Ranger Discovery in the
northwest of the block with the spudding of a 2(nd) appraisal well, Ranger-3.
The Ranger Discovery is located in >2,700m water depth and is located
proximal to the 2020 Tanager-1 Discovery, which straddles the
Stabroek/Kaieteur block boundary. Separately, in June 2024, it was reported
that the government of Guyana had selected a U.S. startup, Fulcrum LNG, in
partnership with ExxonMobil, to assist with monetization of gas resources
which could be produced on a large scale, for export(7).
On a smaller scale, Guyana's first Gas to Energy project is at an advanced
stage. On 9 October 2024, it was reported that a pipeline connecting the Liza
Phase 1 and Phase 2 FPSOs with onshore integrated gas processing facilities
(currently under construction at Wales, West Bank Demerara) had been
mechanically completed and pressure tested(8). The pipeline has a capacity to
transport circa 130 million cubic feet of gas per day (mmcf/d) but will
initially deliver approximately 50 mmcf/d to feed the 300MW power plant and
NGL facility. As of September 2025, construction of the power plant is
reported to be 76% completed(9). The project, which is expected to help lower
electricity costs and reduce emissions, once completed in 2026, by reducing
dependence on imported heavy fuel oil. The project will be the first to take
advantage of associated gas currently produced with the oil on the Stabroek
Block. Associated gas from the Hammerhead development is also expected to be
transferred to Guyana's Gas-to-Energy (GtE) pipeline for delivery to shore.
The Wales construction project is now also expected to include a natural gas
liquids storage and marine offloading facility, with associated pipelines. The
government has launched a two-part procurement process to find firms to
construct and manage the NGL storage/offloading facility, which will receive
liquids from the separation plant that is currently under construction. The
facility is planned to handle liquids at a rate of about 4,200 barrels per day
(b/d) initially, with room to scale up by an additional 5,900 b/d under a
second phase(10).
In July 2023 Hess reported that the Stabroek partners had secured a one-year
extension to the Stabroek exploration licence, from October 2026 to October
2027, as a result of force majeure due to the COVID-19 pandemic. In July 2025,
it was reported that the Stabroek partners had relinquished 2,534 square
kilometres of the Stabroek block - circa 9% of the block's
26,800-square-kilometer area(11).
On 23 October 2023 Chevron Corporation announced that it had entered into a
definitive agreement with Hess Corporation to acquire all of the outstanding
shares of Hess in an all-stock transaction valued at $53 billion, with a total
enterprise value of the transaction, including debt, of $60 billion. The
transaction was originally expected to close in H1 2024. However, on 6 March
2024, it was reported that ExxonMobil had filed for arbitration, with the
International Chamber of Commerce (ICC) in Paris, to assert it's right of
first refusal under the Stabroek JOA. The protracted arbitration proceedings
were resolved on 18 July 2025, with the ICC finding in favour of Chevron
thereby allowing them to immediately complete the acquisition of Hess
Corporation.
In December 2022, the Guyanese government launched a Licensing Round for 14
offshore blocks (3 deepwater and 11 shallow water blocks) under revised fiscal
and contractual terms including biddable signature bonus with a minimum
threshold of USD $20M and $10M for deepwater and shallow water blocks,
respectively. On 15 September 2023, it was announced that bids had been
received for eight of the fourteen blocks on offer, with a total of 14 bids
received from 6 groups, including the ExxonMobil/Hess/CNOOC and the
TotalEnergies/QatarEnergy/Petronas groups. Contract negotiations are
continuing but as of end September 2025 no new licences had been issued(12).
However, on 11 November 2025, TotalEnergies announced that it had signed a
production sharing contract for shallow water Block S4 with an initial work
program consisting 2,000 km(2) 3D seismic acquisition. TotalEnergies (40%)
will operate the block, with QatarEnergy (35%) and Petronas (25%) as partners.
In the Surinamese sector exploration, appraisal and development activities
have continued through this period. On 1 October 2024, Suriname's first
offshore development was confirmed when the Block 58 operator, TotalEnergies,
announced FID with respect to the 'GranMorgu' complex containing the Sapkara
South and Krabdagu low-GOR oil discoveries, with First Oil scheduled for
mid-2028. This development brings together a combined 750 million barrels of
recoverable resources using an all-electric, 220,000 bopd FPSO, with 4-year
plateau and full gas reinjection - meeting the operator's requirements in
terms of unit cost (CAPEX + OPEX $19/boe) and emissions intensity (<16
Kg/boe CO2)(13). The GranMorgu FPSO is designed to accommodate future tie-back
opportunities that would extend its production plateau. One such tie-back
opportunity is the nearby Baja-1 oil discovery on Block 53, operated by APA.
In June 2025, TotalEnergies announced that it had acquired a 25% interest in
Block 53 from Moeve (formerly CEPSA) with a view to using these additional
resources to extend the production plateau at GranMorgu. Separately,
Staatsolie announced in May 2025 that it had concluded a USD$1.6bn bank loan
with a group of 18 banks and financial institutions to part fund its 20%
participation in the GranMorgu project.
Elsewhere, offshore Suriname, Petronas has been progressing the potential for
an integrated oil and gas development in the area of Block 52, notwithstanding
ExxonMobil's exit from a 50% non-operating position in the block in November
2024. On 16 May 2024, Petronas announced a third discovery on Block 52, with
Fusaea-1 encountering several oil and gas-bearing sandstone reservoirs in the
Campanian interval. Subsequently, on 8 August 2024, a successful appraisal
well at Sloanea-2 was reported, with Petronas flagging the potential for a
standalone Floating Liquified Natural Gas (FLNG) project at the field. In May
2025 Staatsolie reported that TotalEnergies would be using the Stena DrillMAX
to spud the Macaw-1 exploration well on Block 64 - the first of five
exploration wells scheduled to be drilled offshore Suriname in 2025. Macaw-1
was due to spud around 19 May and scheduled to take 80 days to drill - no
results have been reported to date. The other exploration wells scheduled for
drilling or underway in 2025 include Caiman-1 and Kiskadee-1 (Petronas, Block
52 - as part of a three well program which commenced in July, using the Noble
Developer semi-submersible), Korikori-1 (Chevron, Block 5 - expected to spud
before end October, using the Noble Regina Allen jack-up) and Araku Deep-1
(Shell, Block 65 - pending the return of the Stena DrillMAX drillship to
offshore Suriname).
On 13 September 2024, Staatsolie announced the signature of two new PSCs
(Blocks 14 & 15) with Petrochina, a subsidiary of CNPC. In June 2025
Petronas reported that it had signed a PSC for Block 66 which includes a firm
commitment to drill two exploration wells, targeting drill-ready prospects
that offer significant resource potential and synergies with their existing
operations in Block 52. In August 2025 Staatsolie announced that it will
launch an 'Open-Door Offering' in November 2025, for open acreage offshore
Suriname. On 5 November 2025 Staatsolie also reported that it had signed new
PSCs for Blocks 9 & 10 - with participants in Block 9 to be Petronas (30%,
operator), Chevron (20%), QatarEnergy (20%), Paradise Oil Co./POC (30%) - and
participants in Block 10 to be Chevron (30%, operator), Petronas (30%),
QatarEnergy (30%) and POC (10%).
In summary, the Guyana-Suriname basin remains a prolific hydrocarbon province
with potential for significant undiscovered resources in multiple plays.
However, 'shifting sands' have seen a more dynamic exploration sector emerge
in the Suriname sector with five exploration wells scheduled for drilling or
underway in 2025 vs one exploration well in the Guyanese sector (none outside
of the Stabroek Block). Macro factors such as operator dominance and
priorities, prolonged arbitration proceedings and the electoral cycle together
with differing prospect economic thresholds have contributed to this
asymmetry. Substantial drill-ready prospects have been high-graded on the
Kaieteur, Canje and Orinduik blocks and remain to be evaluated by the
drill-bit. However, a number of challenges with respect to JV
alignment/composition, licence extensions, environmental permitting and
financing will need to be overcome to progress to the drilling phase.
Investee Interests - offshore Guyana
Kaieteur Block (Cataleya Energy Corp. - 50%; Ratio Petroleum - 50%)
The southern portion of the Kaieteur Block is covered by a 5,750km2 3D seismic
survey, which was acquired in 2017/18 and has provided the foundation for
maturing a significant prospect inventory on the block. A single prospect has
been drilled to date which resulted in a sub-commercial oil discovery. The
ExxonMobil operated Tanager-1 well, which was drilled in H2 2020, encountered
16 metres of net oil pay (20oAPI oil) in high-quality sandstone reservoirs of
Maastrichtian age with a volumetric 'Best Estimate' Unrisked Gross (2C)
Contingent Oil Resource of 65.3 MMBBLs (Low to High Estimates 17.7 MMBBLs to
131 MMBBLs) - Netherland, Sewell & Associates Inc. ("NSAI") published CPR
(February 14, 2021). However, this discovery is currently considered to be
non-commercial as a standalone development.
Subsequent to the Tanager-1 discovery, on May 24, 2021, it was announced that
Hess Corporation ("Hess") had increased its working interest ("WI") in the
Kaieteur Block, offshore Guyana, from 15% to 20% via the farm-down of a 5% WI
by Cataleya Energy Limited ("CEL"). However, in spite of a number of
subsequent postponements, the operator ExxonMobil decided not to exercise its
option to drill a second well on the block.
On 27 September 2023, it was announced by Ratio Petroleum Energy Limited
Partnership ("Ratio Petroleum"), that both ExxonMobil and Hess had elected to
withdraw from the Kaieteur Block and return their participating interests to
the original Kaieteur Licence holders, Ratio Guyana Limited ("RGL") and
Cataleya Energy Limited ("CEL"). The process of reassigning the participating
interests is ongoing, with RGL and CEL each retaining a 50% participating
interest, and RGL operating the block. It was also announced that under the
terms of the Kaieteur Petroleum Agreement, upon submission of an application
to enter the second extension period, and upon the granting of a one year
'Covid extension' the participating interests on the block will have until
February 2026 to commit to drilling a well. In this context, it is noted, that
Ratio Petroleum is actively seeking a farm-down of participating interests
with a view to bringing a new deepwater operator to the block.
In parallel, on 29 September 2024, Ratio Petroleum announced that it had
received a buy-out offer form Ratio Energy Partnership Ltd. (already a
significant shareholder in Ratio Petroleum) at 0.35NIS per share unit, subject
to shareholder approval. Ratio Energy Partnership Ltd. is a well-capitalised
TASE listed company, with a 15% interest in the giant, producing, Leviathan
Gas Field, offshore Israel and a current market capitalisation in excess of
USD $800M. Subsequently, on 12 January 2025, Ratio Petroleum indicated that,
in lieu of the buy-out offer, it was considering a merger proposal from Ratio
Energy and on 11 August 2025 Ratio Petroleum announced the temporary
suspension of this merger review until the end of the year.
As of 30 June 2025, the Kaieteur Block is de facto operated by RGL (50% and
operator) with CEL (50%) as partner. As of 30 June 2025, Westmount retains a
holding of approximately 4.1% of the issued share capital of Cataleya Energy
Corporation ("CEC") the parent company of CEL and circa 0.04% of the issued
share capital of Ratio Petroleum Energy Limited Partnership ("Ratio
Petroleum") the ultimate holding entity with respect to RGL.
Canje Block (JHI Associates Inc. - 17.5%)
In 2016, ExxonMobil, as operator, acquired in excess of 6,100 km(2) of 3D
seismic covering the entire Canje Block. Subsequent processing and
interpretation of this dataset was used to define a substantial prospect
inventory on the block with three prospects (Bulletwood-1, Jabillo-1, and
Sapote-1) high-graded for drilling in the initial drilling campaign in 2021.
All three wells were targeting Late Cretaceous basin floor fans and channel
complexes. Although the drilling confirmed the presence of the Guyana-Suriname
petroleum system, including the presence of some quality reservoirs at all 3
locations, no commercial hydrocarbons were encountered.
Subsequent to the completion of this first phase of drilling on block the
focus of the Canje JV partners has been on the analysis and assimilation of
the 2021 drilling results and data gathering program, the reprocessing and
re-interpretation of the 3D seismic data, and the high-grading of the
Cretaceous prospect inventory including the prospects in the deeper emerging
Santonian-Cenomanian plays.
On 11 September 2023, the operator filed a Cumulative Impact Assessment
("CIA") for the Canje Block with the EPA. This CIA report indicated that
exploration drilling on the Canje Block could potentially recommence from
2024, though this guideline has not been met. In December 2024 JHI and the
Canje JV partners signed a one-year extension to the Canje Petroleum
Agreement, extending the exploration period by one year, ending on 4 March
2026. In addition, as required under the Petroleum Agreement, 20% of the
original Canje area was relinquished reducing the block area to 3,534 square
kilometres.
Westmount holds an indirect interest in the Canje Block as a result of its
circa 6.2% interest (see Table 1) in the issued share capital of JHI
Associates Inc. ("JHI"), as of 30 June 2025. The company also holds an
additional indirect interest in the Canje Block as a result of its
shareholding in Eco (Atlantic) Oil and Gas Ltd. ("EOG") and following the
investments in JHI Associates Inc. ("JHI") announced by EOG on 28 June 2021
and 19 January 2022.
The most recent published financial information with respect to JHI indicated
it had circa USD$19.7 M in cash and cash equivalents as of 31 December
2021(14).
The Canje Block is currently operated by an ExxonMobil subsidiary, Esso
Exploration & Production Guyana Limited (35%), with TotalEnergies E&P
Guyana B.V. (35%), JHI Associates (BVI) Inc. (17.5%) and Mid-Atlantic Oil
& Gas Inc. (12.5%) as partners.
Orinduik Block (Eco Atlantic Oil and Gas Ltd. - 100%)
In 2017 Tullow Oil, the then operator of the Orinduik Block, acquired 2,500
km(2) of 3D seismic data covering the entire block. In 2019 the initial
drilling campaign on the block focused on the shallower Tertiary reservoirs
and resulted in two heavy oil discoveries, Jethro and Joe which are currently
considered to be non-commercial. As of 31 December 2022, the gross 2C resource
attributable to Tullow's then 60% operated interest amounted to 47.7MMBBLs.
Throughout 2022 and 2023 the focus of the Orinduik Block JV partners continued
to be on the analysis and assimilation of the 2019/20 drilling results and
data gathering program, the reprocessing and re-interpretation of the 3D
seismic data, and the high-grading of the deeper Cretaceous light oil prospect
inventory with a view to target selection for the next drilling campaign on
the block. An EOG commissioned CPR by WSP, dated 20 March, 2022, indicates an
aggregate Unrisked Prospective Resource (Best Estimate) of 3,386MMBBLs in 11
Cretaceous prospects. Nevertheless, progress towards drilling on the block
during this period remained stymied due to the diverging strategies of the JV
partners.
On 10 August 2023, EOG announced that it had signed a Sale Purchase Agreement
("SPA") pursuant to which its wholly owned subsidiary, Eco Guyana Oil and Gas
(Barbados) Limited ("Eco Guyana"), would acquire a 60% Operated Interest in
the Orinduik Block, offshore Guyana, through the acquisition of Tullow Guyana
B.V. ("TGBV"), a wholly owned subsidiary of Tullow Oil Plc. ("Tullow") in
exchange for an initial payment of USD$700,000 cash and a series of contingent
payments based upon a commercial discovery outcome and subsequent success case
development milestones.
Following completion of this transaction, on 21 November 2023, EOG became
operator of the block with an aggregate 75% WI held via its wholly owned
subsidiaries Eco Orinduik B.V. (60%) and Eco (Atlantic) Guyana Inc (15%).
Subsequently, at year end, TOQAP Guyana B.V relinquished its 25% WI and EOG
became the sole interest holder in the Orinduik Block with 100% WI.
On January 22, 2024, EOG gave notice to the Minister of Natural Resources of
the Cooperative Republic of Guyana to enter the Second Phase of the Second
Renewable Period of the Orinduik License which under the Petroleum Agreement
contains a commitment to drill a well to the Cretaceous by January 2026.
Subsequent to assuming operatorship of Orinduik EOG has revitalised farm-down
efforts with a view to attracting partners to drill a stacked-pay target in
the more prolific Cretaceous light oil play, which remains unexplored on the
Orinduik Block. In June 2025 EOG reported that it remains engaged in an active
farmout process for the Orinduik Block while also evaluating the Jethro and
Joe heavy oil discoveries to determine the appropriate appraisal approach.
These endeavours may have been potentially bolstered by the September 2025
announcement by Stabroek operator, ExxonMobil, that the neighbouring
Hammerhead Discovery had achieved FID with first oil projected to be in 2028.
Hammerhead, which contains heavier 20-25(o)API crude oil, was discovered in
2018 with the final appraisal well, Hammerhead-4, drilled proximal to the
Orinduik block boundary, in September 2023.
EOG reported its cash and cash equivalents to be USD$3.6M at 30 June 2025 and
is also due to receive circa USD$11.5M as a result of milestone payments due
under various Block 3B/4B (South Africa) farm-down transactions.
Orange Basin (offshore Namibia and South Africa)
Three years post the initial play opening discoveries at Graff-1x (Shell) and
Venus-1x (TotalEnergies) exploration and appraisal activity has continued to
be focused in the Namibian sector of the Orange Basin. With the completed
drill count since early 2022 now at eighteen exploration wells and six
appraisal wells this campaign has yielded twelve discoveries and a NAMCOR
estimate of +21 Bn boe in-place resources discovered to date(15). In addition,
two of these discoveries - the TotalEnergies operated Venus Discovery on Block
2913B (PEL56) and the Galp operated Mopane complex on Block 2813B (PEL83) -
are progressing towards FPSO development, in the context of discussions with
the government re licence conditions and gas disposal challenges and in the
case of Mopane, farm-down discussions attempting to attract a new development
partner. In contrast, new Orange Basin drilling activity has yet to occur on
the South African side as operators including Shell and TotalEnergies grapple
with environmental permitting and associated legal challenges -
notwithstanding the presence of a substantial drill-ready prospect inventory
including Volstruis (Deep Water Orange Basin Block) and Nyala (Block 3B/4B).
During the period two unsuccessful exploration wells were completed,
back-to-back, by the operator TotalEnergies on Block 2913B using the DeepSea
Mira semi-submersible rig. Tamboti-1x which was spudded on 20 October 2024,
encountered 85m of net reservoir in lower quality Upper Cretaceous sandstones
containing black oil which was drill-stem tested. On 28 April 2025, it was
reported that the Marula-1x had been drilled to TD without encountering
hydrocarbons in the primary Albian reservoir target. With respect to Block
2813B, after reporting initial discovery (Mopane-1x, tested at 14kBOEPD) and
successful appraisal (Mopane-2x) in H1 2024 Galp Energia proceeded to drill
two further appraisal wells on the Mopane complex, using the Santorini
Drillship, in Q4 2024. Mopane-1A confirmed the extension to the south of the
main AVO-1 reservoir, while Mopane-2A confirmed an extension of the AVO-3
reservoir and discovered AVO-4, a new light-oil bearing reservoir. No
hydrocarbon-water contacts were found in any of these reservoirs and initial
analysis indicated good porosities and permeabilities, high pressures and low
fluid viscosity characteristics, with minimum CO2 and no H2S concentrations.
The drillship then moved to Mopane-3x an 18km step-out to the southeast from
the Mopane-1x discovery well. On 25 February 2025 it was confirmed that the
well had been successfully drilled, cored and logged, encountering stacked
high-quality sandstone reservoirs with significant columns of light oil and
gas-condensate across the AVO-10 reservoir plus the presence of light oil
columns in the AVO-13 reservoir and a deeper sand.
On 16 December 2024, it was announced that Qatar Energy had farmed into Block
2813B (PEL90) prior to the spudding of the first well on the block. On 15
January 2025, it was reported that Chevron had drilled a dry hole, at
Kapana-1x, in the southeast corner of the block using the DeepSea Bollsta
semi-submersible rig. On 17 March 2025, Pancontinental reported that it had
received notification from Woodside Energy that Woodside had elected not to
exercise its option to farm-in to Blocks 2713A & 2713B (PEL 87).
Subsequent to the Azule Energy farm-in to Block 2914A (PEL85) in May 2024,
Rhino Resources spudded its first well on this block, Sagittarius-1x, in
December 2024 using the Noble Venturer drillship - reaching TD on 6 February
2025. It was reported that the well encountered a hydrocarbon bearing
reservoir in the Upper Cretaceous, with no observed water contact, and with
fluid and reservoir properties to be confirmed by laboratory analysis. The
drillship then moved to spud Capricornus-1x reaching TD on 2 April 2025. This
well encountered 38m of net pay in a high quality, light oil bearing, Lower
Cretaceous reservoir target with no observed hydrocarbon-water contact. A
subsequent production test achieved a surface-constrained flow rate in excess
of 11,000 stb/d on a 40/64" choke, recovering light ~37° API oil with limited
associated gas, less than 2% CO2 and no hydrogen sulphide. On 31 July 2025,
Rhino Resources announced the spudding of a third well, Volans-1x, using the
Deepsea Mira rig. This well, which reached TD on 30 August 2025, encountered
26m of net pay in a rich gas-condensate bearing, Upper Cretaceous, reservoir
with no observed hydrocarbon-water contact. The reservoir has excellent
quality petrophysical properties and two fluid samples taken from the top and
the base of the reservoir indicate the presence of a high liquid-yield gas
condensate (CGR >140 bbl/mmscf) and a liquid density of around 40° API
gravity. Subsequently, Rhino Resources reported that the company is planning
to develop a fast-track production hub centred on these discoveries -
targeting FID in late 2026/early 2027 and first oil in 2030. On 18 September
2025 it was announced that the Deepsea Mira rig had moved to spud the
Kharas-1x well for BW Energy in the northwest of the Kudu license. On 31
October 2025 BW Energy reported that the well had reached total depth with
several intervals showing indications of hydrocarbon presence and reservoir
potential and with the K1 interval indicating the presence of wet gas.
Subsequent wireline operations would assess reservoir quality, fluid type, and
pressure characteristics and guide decisions with respect to future appraisal
strategy.
All the evidence suggests that the prolific Orange Basin petroleum system,
with multiple plays and deepwater reservoir targets, extends from the Namibian
sector south into the South African sector. In addition, a substantial
prospect inventory has already been defined on 3D seismic in the South African
sector suggesting that the Orange Basin is still in the early part of the
creaming curve with the potential for the discovery of additional large-scale
resources.
Investee Interests - offshore South Africa
Block 3B/4B (Eco Atlantic Oil and Gas Ltd. - 5.25% 'fully carried')
Westmount previously held indirect interests in Block 3B/4B via its
shareholdings in Africa Oil Corp ("AOC")/subsequently Meren Energy Inc.
("MER") and EOG. Following the disposal of its holdings in MER reported on 10
June 2025, Westmount's remaining interest in Block 3B/4B is held via its stake
in EOG.
Prior work undertaken on Block 3B/4B, including the reprocessing of 2,200
km(2) of 3D seismic and an independent review of Block 3B/4B prospective
resources, undertaken by RISC Advisory (UK) Limited ("RISC"). The RISC
analysis of the licence identified a total Unrisked Gross P50 Prospective
Resource of approximately 4 billion barrels of oil equivalent ("BOE") in 24
prospects, with individual prospect probabilities of success ranging from 11%
to 39%.
Subsequent to a Letter of Intent announced by EOG on 11 July 2023 and the
entry into an Assignment and Transfer Agreement on 14 July 2023, EOG agreed to
farm out a 6.25% Participating Interest in Block 3B/4B, offshore South Africa
to AOC for up to US$10.5 million in cash, payable via a series of contingent
milestone payments. Upon completion of this transaction, on 22 January 2024,
the Block 3B/4B Licence holders were as follows: Africa Oil SA Corp a wholly
owned subsidiary of AOC (26.25%, operator), Azinam Limited a wholly owned
subsidiary of EOG (20%) and Ricocure (Proprietary) Limited (53.75%).
On 6 March 2024, EOG announced a further farm-down of a 13.75% participating
interest in Block 3B/4B [as part of an aggregate 57% farm down transaction
along with its JV Partners Africa Oil SA Corp. ("AOC") and Ricocure
(Proprietary) Limited ("Ricocure")] to TotalEnergies EP South Africa B.V., who
will become Operator ("TotalEnergies") and QatarEnergy International E&P
LLC ("QatarEnergy"). EOG reported the value of this transaction to EOG as up
to USD$32.1M - including 'loan carry' of EOG's residual 6.25% interest on up
to two wells, contingent cash milestone payments from farminees and payments
due to EOG from AOC and Ricocure under prior agreements. Completion of this
transaction was reported on 28 August 2024 with the revised JV interests as
follows: TotalEnergies (operator) 33%, QatarEnergy 24%, AOC 17%, EOG 6.25%
and Ricocure 19.75%.
Separately, on 29 July 2024, EOG announced that it had entered an Assignment
and Share Cancellation Agreement with AOC whereby EOG would sell a 1% interest
in Block 3B/4B to AOC in exchange for cancellation of all of AOC's shares and
warrants in EOG (worth C$ 11.5m). AOC currently holds, in aggregate,
54,941,744 Common Shares and 4,864,865 Warrants in EOG which, assuming
conversion of the Warrants, would equal 16.16% on a diluted basis (c.15%
non-diluted) of the total outstanding common shares of EOG. On 13 January 2025
EOG announced the completion of this transaction with EOG having a circa 15%
reduction in its issued share capital, while retaining a 5.25% 'carried'
interest in Block 3B/4B.
EOG had previously reported the submission, in March 2023, of an Environmental
Authorisation application for drilling of up to 2 wells on prospects defined
on 3D seismic in a high-graded area in the north of Block 3B/4B. The EIA was
reported to be approved by the Department of Mineral Resources and Energy in
early October 2024(16).
Block 1 (Eco Atlantic Oil and Gas Ltd. - 75% and operator)
Block 1 is located immediately south of the Namibia-South African maritime
boundary and extends, from shoreline out to 1,000 metre water depth, covering
an area of 19,929km². Subsequent to a farm-in agreement with Tosaco Energy
(Proprietary) Ltd., announced on 5 June 2024, EOG reported on 4 June 2025 that
it had secured the transfer of a 75% Working Interest and operatorship with
respect to Block 1. The consideration for this transaction was a series of
staged cash payments totalling USD$750k and a carry of the remaining 25%
Interest through the Budget and Work Program for the first three years up to
an agreed sum of USD$2.3 million of a total work program.
EOG has already purchased and is analysing the existing, high-quality legacy
dataset, including extensive 2D seismic datasets, 3,500 km(2) of 3D seismic
and well data with respect to the three exploration wells previously drilled
on the block. These wells include the Soekor AF-1 gas discovery, which tested
gas at 32.4 MMscfd, and Soekor AE-1, which encountered oil and gas shows -
providing clear evidence of an active petroleum system in the area. The block
is adjacent to a number of recent discoveries in the Namibian sector of the
Orange Basin - such as the Graff, La Rona, Lesedi, Enigma and Jonker
discoveries made by Shell and the Capricornus-1x light oil discovery made by
Rhino Resources.
EOG anticipates launching a formal farm-out process in respect of its interest
in Block 1 in August 2025.
Investment portfolio summary
As of 30 June 2025, Westmount had a cash balance of £0.281M, listed
marketable securities of £0.153M, and is debt free.
On 10 June 2025 Westmount reported that it has received proceeds of circa
£286,155, net of all costs, from the sale of 300,000 common shares in Meren
Energy Inc. (formerly Africa Oil Corp.; "MER"; TSX: MER.TO, Nasdaq Stockholm:
MER.ST), representing all of Westmount's holding in MER. The purchase cost of
these shares, in June 2023, was £538,633 which indicates a net loss of
£224,221 had been incurred after exchange rate movements and attributable
dividends of circa £28,255 during the ownership period.
On 30 June 2025, Westmount held a total of 5,651,270 shares in JHI,
representing approximately 7.2% of the issued common shares in JHI as of 31
December 2022. Following the completion of the Argos-JHI transaction announced
on 25 September 2023, the completion of the members voluntary liquidation by
Argos and the pro rata distribution of JHI Consideration Shares to Argos
shareholders, subsequent to period end Westmount received 33,987 JHI
Consideration Shares in lieu of its one million shares in Argos. Westmount
currently holds 5,685,257 shares in JHI, representing approximately 6.24% of
the enlarged issued share capital of JHI.
As of 30 June 2025, Westmount retains 474,816 common shares in Cataleya Energy
Corporation ("CEC") representing approximately 4.13% of the issued shares in
CEC.
Westmount continues to hold 1,500,000 shares in EOG, as of 30 June 2025.
Further to the completion of the EOG-AOC transaction announced on 29 July
2024, whereby EOG sold a 1% interest in Block 3B/4B South Africa in exchange
for cancellation of all of Africa Oil's shares and warrants in EOG,
Westmount's 1,500,000 shares represent approximately 0.47% of EOG's common
shares estimated to be in issue at completion.
Westmount continues to hold 89,653 shares in Ratio Petroleum representing
approximately 0.04% of the issued share capital. On 29 September 2024, it was
reported by Ratio Petroleum that they had received a buy-out offer from Ratio
Energy Partnership Limited of 0.35NIS per share unit (at prevailing exchange
rates the aggregate value to Westmount was circa USD$8,475), subject to
shareholder approval. Subsequently, on 12 January 2025, Ratio Petroleum
indicated that, in lieu of the buy-out offer, it was considering a merger
proposal from Ratio Energy and on 11 August 2025 Ratio Petroleum announced the
temporary suspension of this merger review until the end of the year.
The complete investment portfolio is summarised in Table 1. The reported
financial loss for the period is primarily made up of a non-cash loss on
financial assets held at fair value through the profit and loss, some of which
is as a result of Foreign Exchange movements on the portfolio Investments when
valued at the period end.
Summary/Outlook
The last twelve months have been a challenging period for Westmount - against
a backdrop of limited visibility to Guyanese drilling activity within our
investee portfolio, diminishing resources, combined with a large seller and
exiting shareholder - resulting in the company being valued as an investment
shell by the London AIM market for much of this time with little or no value
being attributed to the company's private holdings in JHI and CEC.
Nevertheless, the Guyana-Suriname basin remains a prolific hydrocarbon
province with potential for significant undiscovered resources in multiple
plays. However, in spite of less benign fiscal terms than those available to
Guyanese incumbents, the Suriname sector has delivered a more dynamic
exploration program this year with five exploration wells (from four different
operators) scheduled for drilling or underway in 2025 vs only one exploration
well in the Guyanese sector (none outside of the Stabroek Block). Macro
factors such as operator dominance and priorities, prolonged
ExxonMobil/Hess-Chevron arbitration proceedings and the Guyanese electoral
cycle, together with differing prospect economic thresholds, have all
contributed to this asymmetry.
While the arbitration proceedings were resolved in July 2025 and the sitting
government was re-elected in September 2025 - substantial drill-ready
prospects, which have been high-graded on the Kaieteur, Canje and Orinduik
blocks for some time, remain to be evaluated by the drill-bit. Furthermore, a
number of challenges with respect to JV alignment/composition, environmental
permitting and financing all need to be overcome to progress to the drilling
phase. In particular, it is likely that all three JVs are now going to require
licence extensions to be negotiated from Q1 2026 for drilling activity to be
delivered on these blocks.
In contrast, the Falkland Islands and the anticipated FID with respect to the
Sea Lion development has generated much excitement in recent months. This FID
is being viewed as unlocking the North Falklands Basin and providing a
catalyst for further exploration in this prolific basin. Falkland Islands
explorers have been substantially re-rated over the past twelve months and,
serendipitously, Westmount with an effective economic interest of 6.24% in
Production Licence PL001 now joins a peer group, with two other London AIM
listed players, that offer investors exposure to the emerging Falkland Islands
story. The continued positive statements from Navitas with regards to the
Sea Lion development and the recent equity fundraisings by both Navitas and
Rockhopper indicate that the project is on track for FID prior to year end.
Production Licence PL001 is immediately adjacent to the west of Production
Licence PL032 containing the Navitas Petroleum/Rockhopper Sea Lion
development. PL001 is located in modest water depths (<500m) and is fully
covered by 3D seismic. JHI's internal estimates indicate a prospect inventory
defined on 3D seismic containing an aggregate 3.1bn bbls of prospective
recoverable resources with an upside of more than 10 bn bbls(5). So far, two
oil prospects, Tyche and Dinlas, have been high-graded within the same
stratigraphic interval as the Sea Lion discovery - each containing a potential
400 MMbbls recoverable(5).
Westmount has no debt and sufficient cash resources to fund the minimum
(irreducible) corporate overhead into H2 2026, with liquid investments
available, if necessary, to increase this runway. Westmount is also looking at
ways which would allow shareholders to more efficiently retain shareholdings
in the company's private holdings.
In the interim, the board of Westmount continues to actively explore project
and consolidation opportunities, both within and without the sector, to
deliver improved shareholder value.
GERARD WALSH
Chairman
18 November 2025
Notes
(1)BP Energy Outlook 2025 Edition
https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/energy-outlook/bp-energy-outlook-2025.pdf (https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/energy-outlook/bp-energy-outlook-2025.pdf)
(2)2025 ExxonMobil Global Outlook Executive Summary
https://corporate.exxonmobil.com/-/media/global/files/global-outlook/2025-executive-summary.pdf (https://corporate.exxonmobil.com/-/media/global/files/global-outlook/2025-executive-summary.pdf)
(3)IEA Report - The Implications of Oil and Gas Field Decline Rates - 16 September 2025
https://www.iea.org/reports/the-implications-of-oil-and-gas-field-decline-rates (https://www.iea.org/reports/the-implications-of-oil-and-gas-field-decline-rates)
(4)TotalEnergies 2025 Strategy and Outlook - 29 September 2025
https://totalenergies.com/sites/g/files/nytnzq121/files/documents/totalenergies_strategy-and-outlook-presentation_2025.pdf (https://totalenergies.com/sites/g/files/nytnzq121/files/documents/totalenergies_strategy-and-outlook-presentation_2025.pdf)
(5)JHI Associates Inc. website -
https://www.jhiassociates.com/north-falkland-basin (https://www.jhiassociates.com/north-falkland-basin)
(6) ExxonMobil Press Releases 8 August & 22 September 2025.
https://investor.exxonmobil.com/company-information/press-releases/detail/1194/exxonmobil-guyana-expands-capacity-with-seventh-offshore (https://investor.exxonmobil.com/company-information/press-releases/detail/1194/exxonmobil-guyana-expands-capacity-with-seventh-offshore)
(7)Oilnow - Guyana taps Fulcrum LNG to partner with Exxon, government on gas development- June 21,2024
(8)Oilnow - Gas-to-Energy pipeline mechanically completed, ready to introduce natural gas - October 10, 2024
(9)Oilnow - Wales Gas-to-Energy project accelerates with 120-day foundation plan - September 16, 2025
(10)Oilnow - Guyana seeks legal and project management experts to steer Gas-to-Energy project - September 18, 2025
(11)Oilnow - Exxon gives back portion of Stabroek Block to Guyana government - July 3, 2025
(12)Oilnow - Four out of six bidders accept new Guyana PSA terms - Ministry - 17 October, 2024
(13)
https://totalenergies.com/news/press-releases/suriname-totalenergies-announces-final-investment-decision-granmorgu (https://totalenergies.com/news/press-releases/suriname-totalenergies-announces-final-investment-decision-granmorgu)
(14)Eco Atlantic Press Release -14 March 2022.
(15)Sintana Energy Inc. - Corporate Presentation - October 2024
(16)Africa Oil and Gas, Vol.27, Issue20 - 10 October 2024
For further information, please contact:
Westmount Energy
Limited
www.westmountenergy.com (http://www.westmountenergy.com)
David King,
Director
Tel: +44 (0) 1534 823000
Cavendish Capital Markets Limited (Nomad and
Broker) Tel: +44 (0) 20 7397 8900
Neil McDonald / Pete Lynch
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2025
The Directors present their annual report and the audited financial statements
of Westmount Energy Limited (the "Company") for the year ended 30 June 2025.
PRINCIPAL ACTIVITIES
The principal activity of the Company is, and continues to be, an energy
investment company. Development of the Company's activities and its prospects
are reviewed in the Chairman's Review on pages 3 to 13.
The Company was incorporated in Jersey on 1 October 1992 under the Companies
(Jersey) Law 1991, as amended, and is a public company with registered number
53623. The Company is listed on the London Stock Exchange Alternative
Investment Market ("AIM") and was formerly available for cross-trading on the
OTCQB Market in New York, U.S. under the ticker symbol "WMELF". On 8
November 2024, the Company decided to voluntarily withdraw from the OTCQB
Market cross-trading facility. Trading ceased effective 2 December 2024.
DIRECTORS AND DIRECTORS' INTERESTS
The Directors who served during the year and subsequently to the date of this
report were as follows:
Shares held at Options held at
30 June 2025 30 June 2025
GWalsh (Chairman) 11,933,565 -
TPO'Gorman 4,650,000 -
DCorcoran 5,250,000 -
DRKing - -
RESULTS AND DIVIDENDS
The results for the year are set out on page 24 in the Statement of
Comprehensive Income. The Directors do not recommend the payment of a dividend
in respect of these financial statements (2024: £Nil).
DIRECTORS' BIOGRAPHICAL INFORMATION
Gerard Walsh, Chairman, age 62, a Swiss resident, is a member of the Chartered
Institute of Management Accountants and has been involved in financing oil and
gas companies for over 25 years. Mr Walsh maintains his knowledge and skills
via direct contact with senior industry investors and other operators, and via
monitoring of significant market activities within the global energy sector.
David R King, age 67, a Jersey resident, is a Fellow of the Institute of
Chartered Accountants in England and Wales and has over 35 years' experience
in capital markets and cross border structuring gained from senior positions
in a number of offshore jurisdictions, notably the Cayman Islands, Hong Kong,
Luxembourg and Jersey. He is an experienced professional Non-Executive
Director and is regulated personally by the Jersey Financial Services
Commission. He maintains his knowledge and skills via fulfilment of regular
continuing professional development obligations and by close monitoring of
significant market activities within the sector. Mr King acts as an
independent director and oversees the efficient operation of Company
Secretarial, Registrar and Administrative operations of the Company.
Thomas P O'Gorman, age 73, a Northern Ireland resident, is a long term
investor in the resource sector and is the former Chairman of Cove Energy Plc
(formerly Lapp Platts Plc) who has been involved in financing oil and gas
companies for over 40 years. Mr O'Gorman maintains his knowledge and skills
via direct contact with senior industry investors and other operators, and via
monitoring of significant market activities within the global energy sector.
Dermot Corcoran, age 66, a Republic of Ireland resident, is a petroleum
geologist and geophysicist, with more than 30 years' experience working with
both major and minor hydrocarbon exploration companies globally. Mr Corcoran
has wide experience in technical and commercial aspects of petroleum
exploration and production, gained from employment and investment experience
in Europe, North Africa, West Africa, Kurdistan, Syria, Pakistan and the USA.
Mr Corcoran maintains his knowledge and skills via direct contact with senior
industry investors and other operators, attendance and engagement at industry
conferences and seminars and via monitoring of significant market activities
within the global energy sector.
SECRETARY
The Secretary of the Company is Stonehage Fleming Corporate Services Limited.
AUDITOR
The auditor, Moore Stephens Audit and Assurance (Jersey) Limited, has
indicated its willingness to continue in office, and a resolution that it is
re-appointed will be proposed at the next annual general meeting.
STATEMENT OF DIRECTORS' RESPONSIBILITIES WITH REGARD TO THE FINANCIAL
STATEMENTS
The Directors are responsible for preparing the Directors' Report and the
financial statements in accordance with applicable law and regulations.
Jersey Company Law requires the Directors to prepare financial statements for
each financial year. Under that law the Directors have elected to prepare the
financial statements in accordance with International Financial Reporting
Standards as adopted by the European Union ('IFRS Accounting Standards') and
applicable law. Under Company law the Directors must prepare financial
statements that give a true and fair view of the state of affairs of the
Company and of the profit or loss of the Company for that period. In preparing
these financial statements, the Directors are required to:
· select suitable accounting policies and then apply them consistently;
· make judgements and accounting estimates that are reasonable and
prudent;
· state whether the financial statements have been prepared in
accordance with IFRS Accounting Standards as adopted by the European Union;
and
· prepare the financial statements on the going concern basis unless it
is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping proper accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements comply with the Companies
(Jersey) Law 1991. They are also responsible for safeguarding the assets of
the Company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
As far as the Directors are aware, there is no relevant audit information of
which the Company's auditor is unaware and each Director has taken all the
steps that he ought to have undertaken as a director in order to make himself
aware of any relevant audit information and to establish that the Company's
auditor is aware of that information.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website. The
Company's website is maintained in compliance with AIM Rule 26.
Legislation in Jersey governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
The Directors confirm that they have complied with all of the above
requirements in preparing these financial statements.
On behalf of the Board
D R KING
Director
18 November 2025
RESULTS AND DIVIDENDS
The results for the year are set out on page 24 in the Statement of
Comprehensive Income. The Directors do not recommend the payment of a dividend
in respect of these financial statements (2024: £Nil).
DIRECTORS' BIOGRAPHICAL INFORMATION
Gerard Walsh, Chairman, age 62, a Swiss resident, is a member of the Chartered
Institute of Management Accountants and has been involved in financing oil and
gas companies for over 25 years. Mr Walsh maintains his knowledge and skills
via direct contact with senior industry investors and other operators, and via
monitoring of significant market activities within the global energy sector.
David R King, age 67, a Jersey resident, is a Fellow of the Institute of
Chartered Accountants in England and Wales and has over 35 years' experience
in capital markets and cross border structuring gained from senior positions
in a number of offshore jurisdictions, notably the Cayman Islands, Hong Kong,
Luxembourg and Jersey. He is an experienced professional Non-Executive
Director and is regulated personally by the Jersey Financial Services
Commission. He maintains his knowledge and skills via fulfilment of regular
continuing professional development obligations and by close monitoring of
significant market activities within the sector. Mr King acts as an
independent director and oversees the efficient operation of Company
Secretarial, Registrar and Administrative operations of the Company.
Thomas P O'Gorman, age 73, a Northern Ireland resident, is a long term
investor in the resource sector and is the former Chairman of Cove Energy Plc
(formerly Lapp Platts Plc) who has been involved in financing oil and gas
companies for over 40 years. Mr O'Gorman maintains his knowledge and skills
via direct contact with senior industry investors and other operators, and via
monitoring of significant market activities within the global energy sector.
Dermot Corcoran, age 66, a Republic of Ireland resident, is a petroleum
geologist and geophysicist, with more than 30 years' experience working with
both major and minor hydrocarbon exploration companies globally. Mr Corcoran
has wide experience in technical and commercial aspects of petroleum
exploration and production, gained from employment and investment experience
in Europe, North Africa, West Africa, Kurdistan, Syria, Pakistan and the USA.
Mr Corcoran maintains his knowledge and skills via direct contact with senior
industry investors and other operators, attendance and engagement at industry
conferences and seminars and via monitoring of significant market activities
within the global energy sector.
SECRETARY
The Secretary of the Company is Stonehage Fleming Corporate Services Limited.
AUDITOR
The auditor, Moore Stephens Audit and Assurance (Jersey) Limited, has
indicated its willingness to continue in office, and a resolution that it is
re-appointed will be proposed at the next annual general meeting.
STATEMENT OF DIRECTORS' RESPONSIBILITIES WITH REGARD TO THE FINANCIAL
STATEMENTS
The Directors are responsible for preparing the Directors' Report and the
financial statements in accordance with applicable law and regulations.
Jersey Company Law requires the Directors to prepare financial statements for
each financial year. Under that law the Directors have elected to prepare the
financial statements in accordance with International Financial Reporting
Standards as adopted by the European Union ('IFRS Accounting Standards') and
applicable law. Under Company law the Directors must prepare financial
statements that give a true and fair view of the state of affairs of the
Company and of the profit or loss of the Company for that period. In preparing
these financial statements, the Directors are required to:
· select suitable accounting policies and then apply them consistently;
· make judgements and accounting estimates that are reasonable and
prudent;
· state whether the financial statements have been prepared in
accordance with IFRS Accounting Standards as adopted by the European Union;
and
· prepare the financial statements on the going concern basis unless it
is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping proper accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements comply with the Companies
(Jersey) Law 1991. They are also responsible for safeguarding the assets of
the Company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
As far as the Directors are aware, there is no relevant audit information of
which the Company's auditor is unaware and each Director has taken all the
steps that he ought to have undertaken as a director in order to make himself
aware of any relevant audit information and to establish that the Company's
auditor is aware of that information.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website. The
Company's website is maintained in compliance with AIM Rule 26.
Legislation in Jersey governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
The Directors confirm that they have complied with all of the above
requirements in preparing these financial statements.
On behalf of the Board
D R KING
Director
18 November 2025
CORPORATE GOVERNANCE
The Board have adopted the Quoted Companies Alliance Corporate Governance Code
("the QCA Code") following the London Stock Exchange's requirement for AIM
listed companies to adopt and comply with a recognised corporate governance
code.
Strategy and Business Model
The strategy of the Company is to invest in and provide follow on capital to
small and medium sized companies which have significant growth possibilities
operating in the oil and gas sector. Members of the Board have specialist
knowledge and experience in the upstream sector of the oil and gas industry
(gained from extensive investing activity over a number of decades) allowing
them to identify projects and growth companies with potentially higher
returns, commensurate with acceptable levels of risk. The Company undertakes
extensive due diligence on potential investment opportunities and monitors
performance of its investments via close contact with the companies concerned
and analysis of their public announcements and presentations. In common with
other investment companies in this sector, access as a minority shareholder to
projects and valuable investments is challenging but the Board is confident of
its ability to continue to source attractive investment opportunities given
close relationships with a number of companies and their management teams, and
recognition of the Board's experience and strong network.
Shareholder Relations
The Company engages closely with its principal shareholders, a number of whom
are Directors of the Company, primarily via face-to-face meetings and
publishes announcements of significant activity consistent with market
requirements. Shareholders receive annual and half-year financial statements
and are invited to the Company's Annual General Meeting. Contact details for
the Company are maintained on the website and on Regulatory News Service
announcements. The Board seeks to build strong relationships with its
institutional shareholders which are managed by the Chairman and supported by
other members of the Board.
Gerard Walsh, Chairman, and Dermot Corcoran, Director, are primarily
responsible for shareholder liaison, and can be contacted via the Contact Page
on the Company's website.
Stakeholder and Social Responsibilities
The Board has identified its key stakeholders as being its shareholders and
investee companies, given it has no employees and a small range of contracted
service providers. It maintains contact with shareholders, of whom a
significant proportion are Directors, via Regulatory News Service and periodic
feedback from these parties. Contact with investee companies is operated via
the Chairman and individual Board directors responsible for the relevant
investment recommendation, and is geared to key operational, project and
transactional cycles identified for the company concerned.
Risk Management
The Company actively monitors and manages risk in its activities, principally
through oversight and operation of its investment portfolio. The Company
identifies key risks in all of its investments during the selection and due
diligence cycle, and subsequent recommendations for investment by the Company
consider for each proposal a range of risks and mitigating factors.
Identification of these risks is achieved by direct engagement with the
companies in which Westmount seeks to invest, close analysis of their market
opportunities and threats, combined with detailed knowledge of the market
sector where they operate and their competitors.
Board Composition, Evaluation and Decision Making
The Board comprises three shareholder Directors (including the Chairman Gerard
Walsh) and one Non-Executive Director (David King) resident in Jersey, who is
considered to be independent.
The Company deviates from the requirements of the QCA Code in that it has only
one independent non-executive director. The Directors consider that the
structure of the Board is appropriate and proportionate for the business at
this stage of the Company's growth, and that the Independent Director, in
conjunction with the Company's Nominated Adviser, provides appropriate
challenge to the executive directors on all corporate governance matters. The
Board intends to keep all aspects of its corporate governance - independence
and the balance of executive and non-executive roles in particular - under
review going forward.
Each of the four directors has considerable experience in their respective
fields and act collectively in all decision making of the Company. The Board
is satisfied that it has a suitable balance between independence on the one
hand and knowledge of the Company's activities, to allow it to properly
discharge its responsibilities and duties. Directors are expected to use their
judgement and experience to challenge and assess the appropriateness of
operations and decision making at all times.
The Board has formally met two times this financial year and Directors each
dedicate between 12 and 150 days' time to the Company per annum, including
informal contact with other Board members and advisors, and attendance at the
Annual General Meeting.
The Board regularly takes advice from its Nominated Advisor, Cavendish
Securities plc, and other external advisors (principally its external lawyers)
in relation to periodic investment opportunities and fund raising.
The Board completes an annual self-evaluation of its performance based on
externally determined guidelines appropriate to the composition of the Board
and the Company's operation, including Board Sub Committees. The scope of the
self-evaluation exercise will be re-assessed each year to ensure appropriate
depth and coverage of the Board's activities consistent with corporate best
practice. The Board has adopted a board effectiveness questionnaire, which
assesses the composition, processes, behaviours and activities of the board
through a range of criteria, including board size and independence, mix of
skills and experience, and general corporate governance considerations in line
with the QCA code.
Given the stage of the business' maturity, the responsibilities of a
nomination committee are delegated to the Board, and there are no formal
succession planning processes in place. The Board intends to keep this under
review as the business develops.
Corporate Culture
Westmount Energy supports the growing awareness of social, environmental and
ethical matters when considering business practices. These statements provide
an outline of the policies in place that guide the Company and its employees
when dealing with social, environmental and ethical matters in the workplace.
Code of Conduct
Westmount Energy maintains and requires the highest ethical standards in
carrying out its business activities in regards to dealing with gifts,
hospitality, corruption, fraud, the use of inside information and
whistleblowing.
Westmount Energy maintains a zero-tolerance policy towards bribery and
corruption.
Equal Opportunity and Diversity
Westmount Energy promotes and supports the rights and opportunities of all
people to seek, obtain and hold employment without discrimination.
It is our policy to make every effort to provide a working environment free
from bullying, harassment, intimidation and discrimination on the basis of
disability, nationality, race, sex, sexual orientation, religion or belief.
Joint Venture Partners, Contractors and Suppliers
Westmount Energy is committed to being honest and fair in all its dealings
with partners, contractors and suppliers.
Procedures are in place to ensure that any form of bribery or improper
behaviour is prevented from being conducted on Westmount Energy's behalf by
joint venture partners, contractors and suppliers. Westmount Energy also
closely guards information entrusted to it by joint venture partners,
contractors and suppliers, and seeks to ensure that it is never used
improperly.
Operating Responsibility and Continuous Improvement
Westmount Energy adopts an environmental policy which sets standards that meet
or exceed industry guidelines and host government regulations. This is
reviewed on a regular basis. Wherever we operate we will develop, implement
and maintain management systems for sustainable development that will strive
for continual improvement.
Westmount Energy is committed to maintaining and regularly reviewing its
Health and Safety and Environmental Policies.
Periodic feedback from stakeholders, as described in relation to Stakeholder
and Social Responsibilities (above), allows the Board to monitor the culture
of the Company, as well as its ethical values and behaviours.
Governance Structures
The Board operates to manage and direct the affairs of the Company via close
contact between Board members and through both regular scheduled and ad-hoc
Board meetings. The Board aims to meet regularly with a timetable set by the
external Company Secretary with formal agendas and papers delivered in advance
supporting key matters for consideration or approval. Additionally, contact is
maintained between the directors via email and telephone given the geographic
separation of the Board.
Mr Walsh as Chairman is responsible for setting the strategy of the Company
and maintaining performance of the Board in line with the broad objectives set
in that strategy. He is responsible for liaison with key stakeholders,
including shareholders and prospective investee companies, and also with
advisers and regulatory authorities.
Mr King, as a Jersey resident, maintains close contact with the Company
Secretary and other contracted service providers from Jersey. The Board does
not operate separate sub-committees (Audit, Remuneration or Nomination) given
its small size and close contact for key decisions. The Company does not plan
to establish new sub-committees for the foreseeable future.
The Board retains full authority for the Company such that all decisions on
behalf of the Company are reserved for the Board.
Communication with Stakeholders
The Company communicates with shareholders through the Annual Report and
Audited Financial Statements, annual and half year results announcements, the
Annual General Meeting, and periodic meetings with significant institutional
shareholders and analysts.
Corporate information (including all Company publications and announcements)
is available to all shareholders, prospective investors and the public and is
maintained on the Company's website, www.westmountenergy.com
(http://www.westmountenergy.com) .
In the last 12 months there were no votes of shareholders where a significant
proportion voted against a resolution.
INDEPENDENT AUDITOR'S REPORT
TO THE SHAREHOLDERS OF WESTMOUNT ENERGY LIMITED
Opinion
We have audited the financial statements of Westmount Energy Limited (the
'Company') as at and for the year ended 30 June 2025 which comprise the
Statement of Comprehensive Income, the Statement of Financial Position,
Statement of Changes in Equity, the Statement of Cash Flows, and the notes to
the financial statements, including a summary of significant accounting
policies. The financial reporting framework that has been applied in their
preparation is International Financial Reporting Standards ('IFRSs') as
adopted by the European Union and the requirements of the Companies (Jersey)
Law 1991.
In our opinion, the financial statements:
· give a true and fair view of the state of the Company's affairs as at
30 June 2025 and of its loss for the year then ended;
· have been properly prepared in accordance with IFRSs as adopted by
the European Union; and
· have been prepared in accordance with the requirements of the
Companies (Jersey) Law 1991.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing
(UK) (ISAs (UK)) and applicable law. Our responsibilities under those
standards are further described in the Auditor's responsibilities for the
audit of the financial statements section of our report.
We are independent of the Company in accordance with the ethical requirements
that are relevant to our audit of the financial statements in Jersey,
including the Financial Reporting Council's Ethical Standard as applied to
listed entities, and we have fulfilled our ethical responsibilities in
accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
An overview of the scope of our audit
During our audit planning, we determined materiality and assessed the risks of
material misstatement in the financial statements including the consideration
of where directors made subjective judgements, for example, in respect of the
assumptions that underlie significant accounting estimates and their
assessment of future events that are inherently uncertain. We tailored the
scope of our audit in order to perform sufficient work to enable us to provide
an opinion on the financial statements as a whole taking into account the
Company, its accounting processes and controls and the industry in which it
operates.
Emphasis of matter
We draw your attention to note 6 and note 12 of the financial statements,
which include unlisted investments held by the Company and carried at
£3,535,961 (2024:4,274,285) based on Directors' valuations. These are Level
III investments and have been valued based on the recent sales price of the
investments and/or using relevant market proxies where available. The
Directors have also considered market expectations of future performance of
the entity's industry sector, in particular known interest in the area of
current exploration, in arriving at their valuations. Our audit opinion is not
modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were
of most significance in our audit of the financial statements of the current
period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) we identified, including those
which had the greatest effect on the overall audit strategy; the allocation of
resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. we have determined the matters
described below to be the key audit matters to be communicated in our report.
Key Audit Matter How the matter was addressed in the audit
Risk of incorrect valuation of unquoted investment
Our main audit procedures to address the identified risk in respect of the
unlisted investment were:
The valuation of the Company's investments is a key driver of the Company's
investment return and investments represent a material proportion of the § we discussed with management their unlisted valuation methodology, and
Company's financial assets. The relevant accounting policies and investment assessed the recognition and measurement of the unlisted investment held for
composition are discussed in note 2, note 6 and note 12 to the financial compliance with IFRSs, and whether it had been accounted for in accordance
statements. with the stated accounting policy and with IPEVC Guidelines;
§ we substantiated the nature and background of recent transactions which had
been used as the basis of the valuation.
As of 30 June 2025, the investments comprise listed and unlisted equity
instruments valued at £0.15 million and £3.54 million, respectively. The § where the price of recent transaction does not coincide to the Company's
primary risk is associated with the unlisted equity instruments, whose year-end, we have performed independent research about events or conditions
valuation involves a higher degree of judgement by the directors. These that may indicate the need to recalibrate the price to consider the impact of
instruments have been valued based on the price of recent investments, such event or condition.
classifying them as Level III investments.
The valuation of these Level III investments has been determined using the
recent sales price of the investments and/or relevant market proxies where Key Observations
available. In addition, the Directors have taken into account market
expectations of the future performance of the entity's industry sector, We have not identified any material issues from the completion of the above
particularly considering the known interest in current exploration activities, procedures. We conclude that the valuation of unquoted investment in
to arrive at their valuations. This valuation methodology is in accordance accordance with the requirements of Financial Reporting Standards ('IFRSs') as
with the International Private Equity and Venture Capital Guidelines (IPEVC adopted by the European Union
Guidelines).
Risk of management override of controls Our main audit procedures in respect of Management Override of Controls were
as follows:
Management is in unique position to perpetrate fraud because of management's
ability to manipulate accounting records and prepare fraudulent financial § We have obtained understanding of the financial reporting process.
statements by overriding controls that otherwise appear to be operating
effectively. Although the level of risk of management override of controls § We have reviewed opening balances and completeness of journals.
will vary from entity to entity, the risk is nevertheless present in all
entities. Due to the unpredictable way in which such override could occur, it § We have reviewed high-risk journals as part of our testing.
is a risk of material misstatements due to fraud and thus a significant risk.
§ We have reviewed accounting estimates and potential management bias.
Key Observations
We did not note any material issues arising from the procedures performed in
this area.
Going Concern Our main audit procedures in respect of Going Concern were as follows:
The financial statements have been prepared on a going concern basis as · Inquiry with management on its view on going concern of the
discussed in note 2. The Company has negative retained earnings. We included company
the going concern assumption as a key audit matter given the continued losses
and the Company's cash reserve compared to the annual expenses · Obtain management assessment of going concern
· Review cash flow forecasts and budget
Key Observations
We did not note any material issues arising from the procedures performed in
this area.
Our application of materiality
We apply the concept of materiality both in planning and performing our audit,
and in evaluating the effect of misstatements on our audit and on the
financial statements. For the purposes of determining whether the financial
statements are free from material misstatement we define materiality as the
level of misstatement that would probably influence the economic decisions of
a reasonably knowledgeable person.
We have used approximately 5% of net assets, or £197,000 which reflects the
fact that this is an investment fund where its market value is determined
predominantly by its net asset value.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Director's
use of the going concern basis of accounting in the preparation of the
financial statements is appropriate.
Our evaluation of the directors' assessment of the Company's ability to
continue to adopt the going concern basis of accounting included understanding
the nature of the Company, its business model, system of internal control and
related risks, reviewing the performance of the underlying investments,
critically assessing the key assumptions made by management including its
appropriateness in the context of the financial reporting framework, and
evaluating the directors' plans for future actions in relation to their
assessment.
Based on the work we have performed, we have not identified any material
uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the Company's ability to continue
as a going concern for a period of at least twelve months from when the
financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to
going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information
comprises the information included in the annual report, other than the
financial statements and our auditor's report thereon. Our opinion on the
financial statements does not cover the other information and, except to the
extent otherwise explicitly stated in our report, we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements, or our
knowledge obtained in the audit or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether there is a material
misstatement in the financial statements or a material misstatement of the
other information. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required to
report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its
environment obtained in the course of the audit, we have not identified
material misstatements in the chairman's review or the directors' report.
We have nothing to report in respect of the following matters where the
Companies (Jersey) Law 1991 requires us to report to you if, in our opinion:
· adequate accounting records have not been kept, or
· returns adequate for our audit have not been received from branches
not visited by us; or
· the financial statements are not in agreement with the accounting
records and returns; or
we have not received all the information and explanations we require for our
audit.
Responsibilities of directors
As explained more fully in the statement of directors' responsibilities with
regard to the financial statements set out on page 15, the directors are
responsible for the preparation of the financial statements and for being
satisfied that they give a true and fair view, and for such internal control
as the directors determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the directors are responsible for
assessing the Company's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the company or
to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting
irregularities, including fraud
The objectives of our audit in respect of fraud, are to identify and assess
the risks of material misstatement of the financial statements due to fraud;
to obtain sufficient appropriate audit evidence regarding the assessed risks
of material misstatement due to fraud, through designing and implementing
appropriate responses to those assessed risks; and to respond appropriately to
instances of fraud or suspected fraud identified during the audit. However,
the primary responsibility for the prevention and detection of fraud rests
with both management and those charged with governance of the Company.
Our approach was as follows:
· We obtained an understanding of the legal and regulatory
requirements applicable to the Company and considered that the most
significant but not limited to the Companies (Jersey) Law 1991, AIM Rule 26
and the applicable OTCQB Market standards (until the voluntarily withdrawal
from OTCQB on 02 December 2024). We also reviewed the laws and regulations
applicable to the Company that has indirect impact to the financial
statements.
· We obtained an understanding of how the Company complies with
these requirements by discussions with management and those charged with
governance.
· We assessed the risk of material misstatement of the financial
statements, including the risk of material misstatement due to fraud and how
it might occur, by holding discussions with management and those charged with
governance.
· We inquired of management and those charged with governance as to
any known instances of non-compliance or suspected non-compliance with laws
and regulations.
· We reviewed the compliance reports and minutes of the meeting to
see whether there is non-compliance reported to management and those charged
with governance.
· Based on this understanding, we designed specific appropriate
audit procedures to identify instances of non-compliance with laws and
regulations. This included making enquiries of management and those charged
with governance and obtaining additional corroborative evidence as required.
A further description of our responsibilities for the audit of the financial
statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor's report.
Use of our report
This report is made solely to the Company's shareholders as a body, in
accordance with Article 113A of the Companies (Jersey) Law 1991. Our audit
work has been undertaken so that we might state to the Company's shareholders
those matters we are required to state to them in an auditor's report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company and the Company's
shareholders as a body, for our audit work, for this report, or for the
opinions we have formed.
Phillip Callow
For and on behalf of Moore Stephens Audit and Assurance (Jersey) Limited
1 Waverley Place
Union Street
St Helier Jersey
Channel Islands JE4 8SG
Date
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
Year ended 30 June 2025 Year ended 30 June 2024
Notes £ £
Net fair value losses on financial assets held at fair value through profit or (295,478) (491,941)
loss
6
Investment income 1,893 11,969
Finance income 1,607 3,320
Administrative expenses 4 (254,317) (265,915)
Foreign exchange losses (5,499) (3,167)
Operating loss (551,794) (745,734)
Loss before tax (551,794) (745,734)
Tax 3 - -
Loss after tax (551,794) (745,734)
Other comprehensive income - -
Total comprehensive loss for the year (551,794) (745,734)
Basic earnings per share (pence) continuing and total operations 5 (0.38) (0.52)
Diluted earnings per share (pence) continuing and total operations 5 (0.38) (0.52)
The Company has no items of other comprehensive income.
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
As at As at
30 June 2025 30 June 2024
Notes £ £
ASSETS
Non-current assets
Financial assets held at fair value through profit or loss 6 3,535,961 4,274,285
3,535,961 4,274,285
Current assets
Financial assets held at fair value through profit or loss 6 153,342 -
Other receivables and prepayments 7 38,137 56,401
Cash and cash equivalents 8 281,883 222,304
473,362 278,705
Total assets 4,009,323 4,552,990
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 9 58,911 50,784
58,911 50,784
Total Liabilities 58,911 50,784
EQUITY
Stated capital 10 16,652,482 16,652,482
Share based payment reserve 11 - 469,670
Retained deficit (12,702,070) (12,619,946)
Total equity 3,950,412 4,502,206
Total liabilities and equity 4,009,323 4,552,990
These financial statements were approved and authorised for issue by the Board
of Directors on 18 November 2025 and were signed on its behalf by:
D R King
Director
18 November 2025
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
Retained Total
Stated Share-based
capital payment reserve deficit equity
£ £ £ £
As at 1 July 2023 16,652,482 469,670 (11,874,212) 5,247,940
Comprehensive income
Total Comprehensive loss for the year ended 30 June 2024 - - (745,734) (745,734)
As at 30 June 2024 16,652,482 469,670 (12,619,946) 4,502,206
Comprehensive income
Transfer of share-based payment reserve - (469,670) 469,670 -
Total Comprehensive loss for the year ended 30 June 2025 - - (551,794) (551,794)
As at 30 June 2025 16,652,482 - (12,702,070) 3,950,412
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025
Year ended 30 June 2025 Year ended 30 June 2024
Notes £ £
Cash flows from operating activities
Loss for the year (551,794) (745,734)
Adjustments for:
Net fair value losses on financial assets at fair value through profit or loss 295,478 491,941
6
Movement in other receivables and prepayments 18,264 1,552
Movement in trade and other payables 8,127 (3,655)
Net cash used in operating activities (229,925) (255,896)
Cash flows from investing activities
Proceeds from return of capital on investment 289,504 -
Net cash used in investing activities 289,504 -
Net increase/(decrease) in cash and cash equivalents 59,579 (255,896)
Cash and cash equivalents at beginning of year 222,304 478,200
Cash and cash equivalents at end of year 8 281,883 222,304
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
1. GENERAL INFORMATION AND STATEMENTS OF COMPLIANCE WITH
INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION
Westmount Energy Limited (the "Company") operates solely as an energy
investment company. The investment strategy of the Company is to invest in and
provide follow on capital to small and medium sized companies that have
significant growth possibilities.
The Company was incorporated in Jersey on 1 October 1992 under the Companies
(Jersey) Law 1991, as amended, and is a public company with registered number
53623. The Company is listed on the London Stock Exchange Alternative
Investment Market ("AIM") and was formerly available for cross-trading on the
OTCQB Market in New York, U.S. under the ticker symbol "WMELF". On 8
November 2024, the Company decided to voluntarily withdraw from the OTCQB
Market cross-trading facility. Trading ceased effective 2 December 2024.
Basis of Preparation
The financial statements are prepared on a going concern basis in accordance
with International Financial Reporting Standards as adopted by the European
Union ("IFRS Accounting Standards") and applicable legal and regulatory
requirements of the Companies (Jersey) Law 1991. The financial statements have
been prepared under the historical cost convention except for the valuation of
financial assets held at fair value through profit or loss.
The Directors have assessed the Company's ability to continue as a going
concern for a period of at least eighteen months from the reporting date.
During the year, the Company incurred operating losses, which raised concerns
regarding its ability to meet obligations as they fall due. However, these
losses are primarily non-cash in nature. In addition, the Company holds
significant highly liquid assets in the form of quoted investments, which can
be readily disposed of to generate funds if required. Based on these factors,
the Directors believe that the Company has sufficient resources to continue as
a going concern.
2. ACCOUNTING POLICIES
The significant accounting policies that have been applied in the preparation
of these financial statements are summarised below. These accounting policies
have been used throughout all periods presented in the financial statements.
New standards, amendments and interpretations to existing standards that are
effective in the current year
Amendments to IAS 21 'Lack of Exchangeability'
The above amendments which have become effective from 1 January 2025 and have
therefore been adopted do not have a material effect on the financial
statements of the Company.
New standards, amendments and interpretations to existing standards that are
not yet effective and have not been adopted early by the Company
IFRS 18 'Presentation and Disclosure in Financial Statements' (1 January 2027)
Amendments to IFRS 9 and IFRS 7 'Amendments to the Classification and
Measurement of Financial Instruments' (1 January 2026)
At the date of authorisation of these financial statements, certain new
standards, amendments and interpretations to existing standards have been
published but are not yet effective and have not been adopted early by the
Company. The Company is currently assessing their impact, particularly of
IFRS 18 which the Company expects may change the format and subtotals
presented in the primary financial statements and may enhance note
disclosures.
Use of estimates and judgements
The preparation of financial statements in conformity with IFRS Accounting
Standards requires the use of accounting estimates and the exercise of
judgement by management while applying the Company's accounting policies.
Financial assets at fair value through profit and loss that are not listed
have been valued in accordance with IFRS Accounting Standards using the
International Private Equity and Venture Capital ("IPEVC") Guidelines and
information received from the investment entity. The inputs to value these
assets require significant estimates and judgements to be made by the
Directors. The Directors have considered the sensitivity of the valuations
as detailed in note 12.
Functional and presentation currency
The functional currency of the Company is United Kingdom Pounds Sterling
("Sterling"), the currency of the primary economic environment in which the
Company operates. The presentation currency of the Company for accounting
purposes is also Sterling.
Foreign currency monetary assets and liabilities are translated into Sterling
at the rate of exchange ruling on the last day of the Company's financial
year. Foreign currency non-monetary items that are measured at fair value in a
foreign currency are translated into Sterling using the exchange rates at the
date when the fair value was determined. Foreign currency transactions are
translated at the exchange rate ruling on the date of the transaction. Gains
and losses arising on the currency translation are included in administrative
expenses in the Statement of Comprehensive Income in the year in which they
arise.
Financial instruments
Financial assets and financial liabilities are recognised when the Company
becomes party to the contractual provisions of the instrument.
(a) Classification
The Company classifies its financial assets in the following measurement
categories:
- those to be measured subsequently at fair value (either
through other comprehensive income or through profit or loss); and
- those to be measured at amortised cost.
The classification depends on the entity's business model for managing the
financial assets and the contractual terms of the cash flows. The Company
determines the classification of its financial assets and financial
liabilities at initial recognition.
Financial liabilities which are not financial liabilities held at fair value
through profit or loss are classified as other financial liabilities and held
at amortised cost.
(b) Recognition and measurement
Financial assets and financial liabilities are initially measured at fair
value. Transaction costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities (other than financial
assets and financial liabilities at fair value through profit or loss) are
added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs
directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognised immediately in
the Statement of Comprehensive Income.
Subsequent to initial recognition, financial assets at fair value through
profit or loss are re-measured at fair value. For listed investments, fair
value is determined by reference to stock exchange quoted market bid prices at
the close of business at the end of the reporting year, without deduction for
transaction costs necessary to realise the asset. For non-listed investments
fair value is determined by using recognised valuation methodologies, in
accordance with the IPEVC Guidelines. Gains or losses arising from changes
in the fair value of financial assets at fair value through profit or loss are
presented in the Statement of Comprehensive Income in the period in which they
arise.
Subsequent measurement of the Company's debt instruments depends on the model
for managing the asset and the cash flow characteristics of the asset.
The Company measures debt instruments at amortised cost if they are held for
collection of contractual cash flows where those cash flows represent solely
payments of principal and interest. The Company recognises any impairment loss
on initial recognition and any subsequent movement in the impairment provision
in the Statement of Comprehensive Income.
Debt instruments which do not represent solely payments of principal and
interest are measured at fair value through profit or loss.
Financial liabilities, which includes borrowings, are measured at amortised
cost using the effective interest method. The effective interest rate is the
rate that exactly discounts estimated future cash payments through the
expected life of the financial liability or, where appropriate, a shorter
period, to the net carrying amount on initial recognition.
Financial liabilities at fair value through profit or loss are re-measured at
fair value. Gains or losses arising from changes in fair value of financial
liabilities at fair value through profit or loss are presented in the
Statement of Comprehensive Income in the period in which they arise.
(b) Impairment
Under IFRS 9, the impairment model requires the recognition of impairment
provisions based on expected credit losses ("ECL") rather than only incurred
credit losses as was the case under IAS 39. IFRS 9 permits a simplified
approach to trade and other receivables which allows the Company to
recognise the loss allowance at initial recognition and throughout its life
at an amount equal to lifetime ECL. ECL are a probability-weighted estimate
of credit losses. A credit loss is the difference between the cash flows that
are due to an entity in accordance with the contract and the cash flows that
the entity expects to receive discounted at the original effective interest
rate. ECL consider the amount and timing of payments, thus a credit loss
arises even if the entity expects to be paid in full but later than when
contractually due.
The historical default rate has been considered by the Directors and there is
no history of bad debt. Under IFRS 9 ECL Model as well, which is forward
looking, all factors that could contribute to expected future losses have been
considered by the Directors and there is no expectation of credit loss in the
future. As such the Directors concluded that there is no material impact on
the financial statements.
(c) Derecognition
A financial asset or part of a financial asset is derecognised when the rights
to receive cash flows from the asset have expired and substantially all risks
and rewards of the asset have been transferred.
The Company derecognises a financial liability when the obligation under the
liability is discharged, cancelled or expired.
Cash and cash equivalents
Cash and cash equivalents include cash held in banks and cash with broker.
Equity, reserves and dividend payments
Ordinary shares are classified as equity. Transaction costs associated with
the issuing of shares are deducted from stated capital. Retained deficit
include all current and prior period retained profits and losses. Shares are
classified as equity when there is no obligation to transfer cash or other
assets.
Income and Expenditure
The income and expenses of the Company are recognised on an accrual basis in
the Statement of Comprehensive Income.
3. TAXATION
The Company is subject to income tax at a rate of 0%.
The Company is registered as an International Services Entity under the Goods
and Services Tax (Jersey) Law 2007 and a fee of £300 has been paid, which has
been included in administrative expenses.
4. ADMINISTRATIVE EXPENSES
2025 2024
£ £
Administration and consultancy fees 61,876 55,809
Advisory fees 34,136 33,144
Audit fees 23,606 16,648
Directors' fees 60,000 60,000
Legal and professional fees 7,888 13,924
Printing and stationery (6,086) 17,885
Registered agent's fees 22,178 22,567
Insurance expense 24,955 27,470
Other expenses 25,764 18,468
254,317 265,915
5. EARNINGS PER SHARE
2025 2024
Basic earnings per share (pence) (0.38) (0.52)
Diluted earnings per share (pence) (0.38) (0.52)
Current year loss
The calculation of diluted earnings per share is not required this year as the
loss for the year is not diluted. The calculations have been left in for
information.
The table below presents information on the profit attributable to the
shareholders and the weighted average number of shares used in the calculating
the basic and diluted earnings per share.
2025 2024
Basic earnings per share £ £
Loss attributable to the shareholders of the Company (551,794) (745,734)
Diluted earnings per share
Loss attributable to the shareholders of the Company:
Used in calculating basic earnings per share (551,794) (745,734)
Add interest expense - -
Loss attributable to the shareholders of the Company used in calculating (551,794) (745,734)
diluted earnings per share
No. of shares No. of shares
Weighted average number of ordinary shares used as the denominator in 144,051,486 144,051,486
calculating basic earnings per share
Adjustments for calculating of diluted earnings per share:
Share options - -
Weighted average number of ordinary shares and potential ordinary shares used 144,051,486 144,051,486
as the denominator in calculating diluted earnings per share
6. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
2025 2024
£ £
Current Equity investments
Eco Atlantic Oil & Gas Ltd ("Eco Atlantic") 147,450 -
Ratio Petroleum Energy Limited Partnership ("Ratio") 5,892 -
Total investments 153,342 -
Non-current Equity investments
Africa Oil Corp ("AOC") - 423,244
Eco Atlantic Oil & Gas Ltd ("Eco Atlantic") - 198,000
Ratio Petroleum Energy Limited Partnership ("Ratio") - 3,365
Cataleya Energy Corporation ("Cataleya") 1,353,440 1,467,155
JHI Associates Inc ("JHI") 2,182,521 2,182,521
Total investments 3,535,961 4,274,285
During the year, the Company reassessed its investment portfolio and
reclassified certain investments from non-current to current assets. The
reclassification reflects management's change in intention to monetise these
investments when the need arises, rather than holding them for the long-term.
Net changes in fair value of financial assets designated at fair value through
profit or loss
2025 2024
£ £
Opening cumulative unrealised loss (8,044,740) (7,850,598)
Net unrealised movement (50,147) (194,142)
Cumulative unrealised loss on financial assets at fair value through profit or (8,094,887) (8,044,740)
loss
2025 2024
£ £
Unrealised loss (50,147) (194,142)
Realised loss on return of capital of financial assets (245,331) (297,799)
Net changes in fair value of financial assets at fair value through profit or (295,478) (491,941)
loss
During the year, the Company sold all its holdings of 300,000 (2024: 300,000)
ordinary fully paid shares in AOC for a consideration of CAD 531,264.79. On
30 June 2025, the fair value of the Company's holding is £Nil (2024:
£423,244 (1.41p)).
On 30 June 2025, the fair value of the Company's holding of 1,500,000 (2024:
1,500,000) ordinary fully paid shares in Eco Atlantic, representing 0.48%
(2024: 0.44%) of the issued share capital of the company, was £147,450 (2024:
£198,000) (£9.83p per share (2024: £13.20p per share)). No shares were
purchased or disposed of in the current year nor the prior year.
On 30 June 2025, the fair value of the Company's holding of 89,653 (2024:
89,653) ordinary fully paid shares in Ratio, representing 0.04% (2024: 0.04%)
of the issued share capital of the Company, was £5,892 (2024: £3,365) (6.57p
per share (2024: 3.75p per share)). No shares were purchased or disposed of
during the current year nor the prior year.
On 30 June 2025, the Directors' estimate of the fair value of the Company's
holding of 474,816 (2024: 474,816) shares in Cataleya was £1,353,439 (2024:
£1,467,155) (£2.85 per share (2024: £3.09)). No shares were purchased or
disposed of in the current year nor the prior year.
On 30 June 2025, the Directors' estimate of the fair value of the Company's
holding of 5,651,270 (2024: 5,651,270) shares in JHI was £2,182,521 (2024:
£2,182,521) (£0.39 per share (2024: £0.39 per share)). No shares were
purchased or disposed of in the current year nor the prior year.
7. OTHER RECEIVABLES AND PREPAYMENTS
2025 2024
£ £
Accrued income - 11,871
Prepayments 25,161 31,554
Other receivables* 12,976 12,976
38,137 56,401
* The Company is anticipating to receive 33,660 JHI shares from Argos by way
of a post liquidation pro rata distribution of assets to Argos shareholders.
The Directors valued the expected JHI shares at £0.39 (2024: £0.39) per
share which is the estimated fair value its existing JHI shares.
8. CASH AND CASH EQUIVALENTS
2025 2024
£ £
Cash at bank 84,790 222,389
Cash at broker/(overdraft) 197,093 (85)
281,883 222,304
The cash at broker is not held with a banking institution and therefore is
likely to carry higher credit risk.
9. TRADE AND OTHER PAYABLES
2025 2024
£ £
Accrued expenses 58,911 50,784
58,911 50,784
10. STATED CAPITAL
Allotted, called up and fully paid: Ordinary shares Ordinary shares
No. £
1 July 2023 144,051,486 16,652,482
Additions - -
1 July 2024 144,051,486 16,652,482
Additions - -
At 30 June 2025 144,051,486 16,652,482
There were no share issues nor redemptions during the year ended 30 June 2025
(2024: £Nil).
11. SHARE-BASED PAYMENT RESERVE
2025 2024
£ £
At beginning of year 469,670 469,670
Transfer of share-based payment reserve (469,670)
At end of year - 469,670
The number and weighted average exercise price of share options are as
follows:
2025 2025 2024 2024
Weighted average exercise price (p) Weighted average exercise price (p)
Number of options Number of options
Outstanding at start of the year - - 15.00 2,250,000
Granted during the year - - - -
Expired during the year - - - (2,250,000)
Exercised during the year - - - -
Outstanding at end of the year - - 15.00 -
Exercisable at end of the year - - 15.00 -
During the year, no options have expired (30 June 2024: 2,250,000 options).
12. FINANCIAL RISK
The Company's investment activities expose it to a variety of financial risks:
market risk (including foreign exchange risk, price risk and interest rate
risk), credit risk and liquidity risk. The Company's overall risk management
programme focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the Company's financial performance.
a) Market risk
i) Foreign exchange risk
The Company's functional and presentation currency is Sterling. The Company is
exposed to currency risk through its investments in Africa Oil Corp, Cataleya,
JHI and Ratio, and cash at bank. The Directors have not hedged this exposure.
Currency exposure as at 30 June:
Assets and net exposure Assets and net exposure
2025 2024
Currency £ £
US Dollars 1,495,172 1,764,237
Canadian Dollars 2,047,350 2,470,594
Israeli Shekel 5,892 3,365
Total 3,548,414 4,238,196
If the value of Sterling had strengthened by 5% against all of the currencies,
with all other variables held constant at the reporting date, the equity
attributable to equity holders and the loss for the year would have decreased
by £177,093 (2024: £203,814). The weakening of Sterling by 5% would have an
equal but opposite effect. The calculations are based on the foreign currency
denominated financial assets as at year end and are not representative of the
period as a whole.
ii) Price risk
Price risk is the risk that the fair value of the future cash flows of a
financial instrument will fluctuate due to changes in market prices. The
Company is exposed to price risk on the investments held by the Company and
classified by the Company on the Statement of Financial Position as at fair
value through profit or loss. To manage its price risk, management closely
monitor the activities of the underlying investments.
The Company's exposure to price risk is as follows:
Fair value
£
Fair Value Through Profit or Loss, as at 30 June 2025 3,689,303
Fair Value Through Profit or Loss, as at 30 June 2024 4,274,285
With the exception of JHI and Cataleya, the Company's investments are all
publicly traded and listed on either the AIM, OTCQB, Tel Aviv Stock Exchange
or Toronto Stock Exchange. A 30% increase in market price would decrease the
pre-tax loss for the year and increase the net assets attributable to ordinary
shareholders by £46,003 (2024: £187,383). A 30% reduction in market price
would have increased the pre-tax loss for the year and reduced the net assets
attributable to shareholders by an equal but opposite amount. 30% represents
management's assessment of a reasonably possible change in the market prices.
A 30% increase in the market price of JHI and Cataleya would decrease the
pre-tax loss for the year and increase the net assets attributable to ordinary
shareholders by £1,060,788 (2024: £1,094,903). A 30% reduction in market
price would have increased the pre-tax loss for the year and reduced the net
assets attributable to shareholders by an equal but opposite amount. 30%
represents management's assessment of a reasonably possible change in the
market price of JHI and Cataleya based on the price of share purchases over
the last two years.
iii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market interest
rates. The Company is not exposed to material interest rate risk.
b) Credit risk
Credit risk is the risk that an issuer or counterparty will be unable or
unwilling to meet commitments it has entered into with the Company. The
Directors do not believe the Company is subject to any significant credit risk
exposure regarding trade receivables.
At the end of the reporting period, the Company's financial assets exposed to
credit risk amounted to the following:
2025 2024
£ £
Cash and cash equivalents 281,883 222,304
The Company considers that all the above financial assets are not impaired or
past due for each of the reporting dates under review and are of good credit
quality.
c) Liquidity risk
Liquidity risk is the risk that the Company cannot meet its liabilities as
they fall due. The Company's primary source of liquidity consists of cash and
cash equivalents and those financial assets which are publicly traded and held
at fair value through profit or loss and which are deemed highly liquid.
The following table details the contractual, undiscounted cash flows of the
Company's financial liabilities:
As at 30 June 2025
Up to 3 months Up to 1 year Over 1 year Total
£ £ £ £
Financial liabilities
Trade and other payables 58,911 - - 58,911
58,911 - - 58,911
As at 30 June 2024
Up to 3 months Up to 1 year Over 1 year Total
£ £ £ £
Financial liabilities
Trade and other payables 50,784 - - 50,784
50,784 - - 50,784
Capital Management
The Company's objective when managing capital is to safeguard the Company's
ability to continue as a going concern in order to provide optimum returns for
shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce cost of capital.
In order to maintain or adjust the capital structure, the Company may issue
new shares, return capital to shareholders or sell assets. The Company does
not have any debt nor is the Company subject to any external capital
requirements.
Fair Value Estimation
The Company has classified its financial assets as fair value through profit
or loss and fair value is determined via one of the following categories:
Level I - An unadjusted quoted price in an active market provides the most
reliable evidence of fair value and is used to measure fair value whenever
available. As required by IFRS 7, the Company will not adjust the quoted price
for these investments, (even in situations where it holds a large position and
a sale could reasonably impact the quoted price).
Level II - Inputs are other than unadjusted quoted prices in active markets,
which are either directly or indirectly observable as of the reporting date,
and fair value is determined through the use of models or other valuation
methodologies.
Level III - Inputs are unobservable for the investment and include situations
where there is little, if any, market activity for the investment. The
inputs into the determination of fair value require significant management
judgment or estimation.
The following table shows the classification of the Company's financial
assets:
Level I Level II Level III Total
£ £ £ £
At 30 June 2025 153,342 - 3,535,960 3,689,302
At 30 June 2024 624,609 - 3,649,676 4,274,285
The Company has classified quoted investments as Level I, derivative financial
instruments as Level II and unquoted investments as Level III. The Level III
investment is at an early stage of development and therefore has been valued
based on the recent price of the investment. The Directors have considered
current market conditions and market expectations of future performance of the
entity's industry sector, in particular known interest in the area of current
exploration. As such, the Directors consider that the recent price of the
investment in Cataleya, which is the price of the ROC transaction in January
2023, fairly reflects the value of the investment as at 30 June 2025.
Following the most recent completed transaction in January 2022 which is the
acquisition by Eco (Atlantic) Oil and Gas Ltd. of JHI shares, the Directors
have used this price as their basis for determining the Company's fair value
investment in JHI. There have been no movements in classifications during the
year.
A reconciliation of the movements in Level III investments is shown below:
2025 2024
£ £
At start of the year 3,649,676 4,049,925
Change in fair value (113,716) (400,249)
At end of the year 3,535,960 3,649,676
13. DIRECTORS' REMUNERATION AND SHARE OPTIONS
2025 2024 2025 2024
Directors' fees Directors' fees Options outstanding Options outstanding
£ £
DRKing 20,000 20,000 - -
DCorcoran - - - -
GWalsh 20,000 20,000 - -
TO'Gorman 20,000 20,000 - -
60,000 60,000 - -
At the year end the Company owed £25,000 (2024: £10,000) in outstanding
Directors' fees.
During the year consultancy fees of £20,042 (2024: £23,940) were paid to D
Corcoran.
No options were granted during the current year. No options were exercised
during the current nor prior years.
The shares held by the Directors are declared in the Directors' report.
The Company does not employ any staff except for its Board of Directors. The
Company does not contribute to the pensions or any other long-term incentive
schemes on behalf of its Directors.
14. RELATED PARTIES
As at the balance sheet date, Canaccord Genuity as a significant shareholder
of the Company was considered a related party under AIM rules. The Company
paid £391 in Custody fees to Canaccord Genuity for the year (2024: £462).
As noted in Note 16, Canaccord Genuity ceased to be a related party after
significantly reducing its shareholding in the Company in July 2025.
The shares held by the Directors are declared in the Directors' report.
15. CONTROLLING PARTY
In the opinion of the Directors, the Company does not
have a controlling party.
16. SUBSEQUENT EVENTS
In July 2025, the Company received 33,987 JHI shares from Argos by way of post
liquidation pro rata distribution of assets to Argos shareholders.
Also in July 2025, Canaccord Genuity ceased to be a related party because of
its disposal of a significant ownership interest in the Company.
Apart from the aforementioned, there are no other significant events
subsequent to the year-end that require adjustment or disclosure in the
financial statements.
17. COMMITMENTS AND CONTINGENCIES
There are no commitments or contingencies other than those mentioned in these
financial statements.
If the value of Sterling had strengthened by 5% against all of the currencies,
with all other variables held constant at the reporting date, the equity
attributable to equity holders and the loss for the year would have decreased
by £177,093 (2024: £203,814). The weakening of Sterling by 5% would have an
equal but opposite effect. The calculations are based on the foreign currency
denominated financial assets as at year end and are not representative of the
period as a whole.
ii) Price risk
Price risk is the risk that the fair value of the future cash flows of a
financial instrument will fluctuate due to changes in market prices. The
Company is exposed to price risk on the investments held by the Company and
classified by the Company on the Statement of Financial Position as at fair
value through profit or loss. To manage its price risk, management closely
monitor the activities of the underlying investments.
The Company's exposure to price risk is as follows:
Fair value
£
Fair Value Through Profit or Loss, as at 30 June 2025 3,689,303
Fair Value Through Profit or Loss, as at 30 June 2024 4,274,285
With the exception of JHI and Cataleya, the Company's investments are all
publicly traded and listed on either the AIM, OTCQB, Tel Aviv Stock Exchange
or Toronto Stock Exchange. A 30% increase in market price would decrease the
pre-tax loss for the year and increase the net assets attributable to ordinary
shareholders by £46,003 (2024: £187,383). A 30% reduction in market price
would have increased the pre-tax loss for the year and reduced the net assets
attributable to shareholders by an equal but opposite amount. 30% represents
management's assessment of a reasonably possible change in the market prices.
A 30% increase in the market price of JHI and Cataleya would decrease the
pre-tax loss for the year and increase the net assets attributable to ordinary
shareholders by £1,060,788 (2024: £1,094,903). A 30% reduction in market
price would have increased the pre-tax loss for the year and reduced the net
assets attributable to shareholders by an equal but opposite amount. 30%
represents management's assessment of a reasonably possible change in the
market price of JHI and Cataleya based on the price of share purchases over
the last two years.
iii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market interest
rates. The Company is not exposed to material interest rate risk.
b) Credit risk
Credit risk is the risk that an issuer or counterparty will be unable or
unwilling to meet commitments it has entered into with the Company. The
Directors do not believe the Company is subject to any significant credit risk
exposure regarding trade receivables.
At the end of the reporting period, the Company's financial assets exposed to
credit risk amounted to the following:
2025 2024
£ £
Cash and cash equivalents 281,883 222,304
The Company considers that all the above financial assets are not impaired or
past due for each of the reporting dates under review and are of good credit
quality.
c) Liquidity risk
Liquidity risk is the risk that the Company cannot meet its liabilities as
they fall due. The Company's primary source of liquidity consists of cash and
cash equivalents and those financial assets which are publicly traded and held
at fair value through profit or loss and which are deemed highly liquid.
The following table details the contractual, undiscounted cash flows of the
Company's financial liabilities:
As at 30 June 2025
Up to 3 months Up to 1 year Over 1 year Total
£ £ £ £
Financial liabilities
Trade and other payables 58,911 - - 58,911
58,911 - - 58,911
As at 30 June 2024
Up to 3 months Up to 1 year Over 1 year Total
£ £ £ £
Financial liabilities
Trade and other payables 50,784 - - 50,784
50,784 - - 50,784
Capital Management
The Company's objective when managing capital is to safeguard the Company's
ability to continue as a going concern in order to provide optimum returns for
shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce cost of capital.
In order to maintain or adjust the capital structure, the Company may issue
new shares, return capital to shareholders or sell assets. The Company does
not have any debt nor is the Company subject to any external capital
requirements.
Fair Value Estimation
The Company has classified its financial assets as fair value through profit
or loss and fair value is determined via one of the following categories:
Level I - An unadjusted quoted price in an active market provides the most
reliable evidence of fair value and is used to measure fair value whenever
available. As required by IFRS 7, the Company will not adjust the quoted price
for these investments, (even in situations where it holds a large position and
a sale could reasonably impact the quoted price).
Level II - Inputs are other than unadjusted quoted prices in active markets,
which are either directly or indirectly observable as of the reporting date,
and fair value is determined through the use of models or other valuation
methodologies.
Level III - Inputs are unobservable for the investment and include situations
where there is little, if any, market activity for the investment. The
inputs into the determination of fair value require significant management
judgment or estimation.
The following table shows the classification of the Company's financial
assets:
Level I Level II Level III Total
£ £ £ £
At 30 June 2025 153,342 - 3,535,960 3,689,302
At 30 June 2024 624,609 - 3,649,676 4,274,285
The Company has classified quoted investments as Level I, derivative financial
instruments as Level II and unquoted investments as Level III. The Level III
investment is at an early stage of development and therefore has been valued
based on the recent price of the investment. The Directors have considered
current market conditions and market expectations of future performance of the
entity's industry sector, in particular known interest in the area of current
exploration. As such, the Directors consider that the recent price of the
investment in Cataleya, which is the price of the ROC transaction in January
2023, fairly reflects the value of the investment as at 30 June 2025.
Following the most recent completed transaction in January 2022 which is the
acquisition by Eco (Atlantic) Oil and Gas Ltd. of JHI shares, the Directors
have used this price as their basis for determining the Company's fair value
investment in JHI. There have been no movements in classifications during the
year.
A reconciliation of the movements in Level III investments is shown below:
2025 2024
£ £
At start of the year 3,649,676 4,049,925
Change in fair value (113,716) (400,249)
At end of the year 3,535,960 3,649,676
13. DIRECTORS' REMUNERATION AND SHARE OPTIONS
2025 2024 2025 2024
Directors' fees Directors' fees Options outstanding Options outstanding
£ £
D R King 20,000 20,000 - -
D Corcoran - - - -
G Walsh 20,000 20,000 - -
T O'Gorman 20,000 20,000 - -
60,000 60,000 - -
At the year end the Company owed £25,000 (2024: £10,000) in outstanding
Directors' fees.
During the year consultancy fees of £20,042 (2024: £23,940) were paid to D
Corcoran.
No options were granted during the current year. No options were exercised
during the current nor prior years.
The shares held by the Directors are declared in the Directors' report.
The Company does not employ any staff except for its Board of Directors. The
Company does not contribute to the pensions or any other long-term incentive
schemes on behalf of its Directors.
14. RELATED PARTIES
As at the balance sheet date, Canaccord Genuity as a significant shareholder
of the Company was considered a related party under AIM rules. The Company
paid £391 in Custody fees to Canaccord Genuity for the year (2024: £462).
As noted in Note 16, Canaccord Genuity ceased to be a related party after
significantly reducing its shareholding in the Company in July 2025.
The shares held by the Directors are declared in the Directors' report.
15. CONTROLLING PARTY
In the opinion of the Directors, the Company does not
have a controlling party.
16. SUBSEQUENT EVENTS
In July 2025, the Company received 33,987 JHI shares from Argos by way of post
liquidation pro rata distribution of assets to Argos shareholders.
Also in July 2025, Canaccord Genuity ceased to be a related party because of
its disposal of a significant ownership interest in the Company.
Apart from the aforementioned, there are no other significant events
subsequent to the year-end that require adjustment or disclosure in the
financial statements.
17. COMMITMENTS AND CONTINGENCIES
There are no commitments or contingencies other than those mentioned in these
financial statements.
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Copyright 2019 Regulatory News Service, all rights reservedRecent news on Westmount Energy
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