REG - Westmount Energy Ld - Final Results <Origin Href="QuoteRef">WNRG.L</Origin> - Part 1

Westmount EnergyAnnouncement

20/11/2015 07:01

RNS Number : 3729G
Westmount Energy Limited
20 November 2015
20 November 2015
Westmount Energy Limited
("Westmount" or the "Company")
Final Results
The Company is pleased to announce it's Final Results for the year ended 30 June 2015. A copy of the results is available on the Company's website, www.westmountenergy.com, and will be posted to shareholders today.
Notice is hereby given that the Annual General Meeting of Westmount will be held at No 2 The Forum Grenville Street, St Helier, Jersey, JE1 4HH, Channel Islands on 11 December 2015 at 11:00 am.
CHAIRMAN'S REVIEW
The past year has been very challenging for investors in Oil & Gas assets. During the year under review your Company had a loss of 222,239, with administrative expenses reduced to 126,754. As reported at the interim stage the Board has financed the ongoing corporate overheads of the company by disposing of shares in the portfolio; 200,000 shares in Sterling Energy Plc were sold during the year and since the year end the board has had to dispose of 250,000 shares in Falklands Oil & Gas Limited ("FOGL") to finance ongoing administration costs. 
Proposed Placing and Open Offer
Despite the challenging industry conditions, the Directors still believe that there will be opportunities for investment in the sector and want the Company to be able to take advantage of attractive opportunities should they arise. In an effort to put the Company on a sounder financial footing and provide funds for working capital and investment, the Board has agreed to a conditional placing and Open Offer to existing qualifying shareholders (on a 1 for 1 basis) to issue up to a total of 15,830,300 new ordinary shares at a price of 4p per share to raise up to a total of 633,212 before costs The directors will subscribe for their pro rata entitlements in the Open Offer and a total of 6,000,000 new ordinary shares ("the Subscription") has been conditionally placed with two new investors, Mr John Craven and Mr Dermot Corcoran, who are investing in a private capacity. The Board believes that the placing and Open Offer provides new capital for the Company which together with the new shareholders will further enhance the Company's growth prospects. Further details of the Subscription and Open Offer are set out in a circular sent to shareholders today. 
The proposed Subscription and Open Offer, while raising a modest amount, in fact more than doubles the size of the share capital of the Company, which the Board believes is appropriate as the Company needs to increase its market capitalisation and resources if it is to be taken seriously going forward.
The Board requires shareholder approval to amend the nominal value of the Company's ordinary shares in order to complete the Subscription and Open Offer ("the Resolutions"). The Resolutions will be put to shareholders at a General Meeting of the Company convened for 11 December 2015.
 
The Board unanimously recommends that the all shareholders vote in favour of the Resolutions. 
Portfolio
Westmount's portfolio of energy shares is mainly focused on the Falkland Islands where our largest holding, Falklands Oil & Gas Limited, is currently drilling.
In conjunction with its partners, FOGL has this year drilled two oil discoveries in the North Falkland basin. The Zebedee well was an oil and gas discovery announced on 5 April 2015 and extended the Sea Lion field. The second, Isobel Deep oil discovery announced on 28 May 2015 has opened up a new play with exploration upside and could be revisited for a further well later this year.
A consortium involving FOGL recently completed drilling the Humpback prospect in the South Falklands basin. The Humpback well was drilled to a total depth of 5,136 meters (measured depth). The well encountered non-commercial quantities of oil and gas within a number of sandstone intervals. The rig will shortly return to the North Falklands Basin to drill a second well on the Elaine/Isobel fan complex. The Elaine/Isobel fan complex, based on the operator's estimates, has multiple reservoir targets and gross mean un-risked resources of 400 million barrels of oil.
In addition, your company has a holding in Argos Resources Ltd ("Argos") which has recently completed a transaction with Noble and Edison. The transaction provides Argos with exposure to a well on the Rhea prospect on licence PL001 in the North Falklands basin which should be drilled in the fourth quarter, without any financial exposure to Argos.
I remain hopeful that with further exploration and appraisal wells to follow that the FOGL and Argos share price have potential for improvement.
New Ventures
Over the past year, the fall in the oil price together with the risk off investment environment has resulted in a difficult environment to evaluate, execute and finance merger and acquisition activity in the energy sector. As we have seen, share prices across the sector have been adversely affected, in particular companies exposed to high cost production and debt have been the hardest hit.
Given the new oil price environment, efforts are continuing to find a suitable transaction for investment and we continue to engage in discussion with a number of entities as well as brokers and our advisors. I have found that, particularly where exploration teams are concerned, that we are competing with private equity groups, which given the Company's current size and financing ability makes it challenging.
However, I remain hopeful of finding a suitable transaction and efforts will continue. The modest fundraising from the Subscription and Open Offer, the welcome addition of two experienced oil & gas executives and investors joining the share register together with the proposed amendments to the share capital should leave your Company in a stronger position and assist with the search and evaluation process. 
Finally, I take the opportunity to thank all our shareholders for your patience and support.
GERARD WALSH
Chairman
Enquiries:-
David King
Westmount Energy Limited Tel: 01534 823028
Nicholas Wells/Elizabeth Bowman
Nomad and Broker
Cenkos Securities plcTel: 020 7397 8900
www.cenkos.co

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2015















Year ended 30 June 2015

Year ended 30 June 2014
Note














Net loss on financial assets held at fair value through profit or loss


(95,485)

(63,287)
Administrative expenses


(126,754)

(142,319)






Operating loss


(222,239)

(205,606)












Loss before tax


(222,239)

(205,606)












Comprehensive loss for the year


(222,239)

(205,606)












Basic loss per share (pence)
4

(2.26)

(2.10)






Diluted loss per share (pence)
4

(2.26)

(2.10)












All results are derived from continuing operations.






The Company has no items of other comprehensive income.






STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2015





























As at

As at





30 June 2015

30 June 2014
(Restated)



Notes










ASSETS







Non-Current Assets







 Financial assets at fair value through profit or loss 


5

536,821

682,888








Current Assets







 Other receivables


6

9,721

7,607
 Cash and cash equivalents


7

7,291

76,866













17,012

84,473








Total assets




553,833

767,361








LIABILITIES AND EQUITY







Current Liabilities







 Trade and other payables 


8

31,760

57,831







EQUITY







 Share capital


9

1,966,060

1,966,060
 Share premium account


10

551,560

516,778
 Share option account


10

349,906

349,906
 Retained earnings




(2,345,453)

(2,123,214)








Total equity




522,073

709,530








Total liabilities and equity




553,833

767,361








STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2015









Share capital
Share Premium
Share Option
Retained
Total 


Account
Account
Account
Earnings
Equity






























As at 1 July 2013 as previously stated

1,966,060
492,103
293,427
(1,861,129)
890,461







Prior Year adjustment (Note 10)

-
-
56,479
(56,479)
-







As at 1 July 2013 restated

1,966,060
492,103
349,906
(1,917,608)
890,461







Comprehensive Income






Loss for the year ended 30 June 2014

-
-
-
(205,606) 
(205,606)







Transaction with owners






Expired redemption of B shares not taken up

-
24,675
-
-
24,675







At 30 June 2014

1,966,060
516,778
349,906
(2,123,214)
709,530







Comprehensive Income






Loss for the year ended 30 June 2015

-
-
-
(222,239)
(222,239)
Transaction with owners






Expired redemption of B shares not taken up

-
34,782
-
-
34,782







At 30 June 2015

1,966,060
551,560
349,906
(2,345,453)
522,073





















STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2015









Year ended 30 June 2015

Year ended 30 June 2014

Note








Cash flows from operating activities











Total comprehensive loss for the year


(222,239)

(205,606)
Adjustment for net loss on investments at fair value through profit or loss


95,485

63,287
Increase in prepayments and accrued income


(2,114)

35
Decrease in creditors and accrued expenses


(26,071)

(32,090)
Sale of investments


50,582

-
Net cash outflows from operating activities


(104,357)

(174,374)






Cash flows from financing activities











Expired redemption of B shares not taken up
10

34,782

24,675
Net cash generated in financing activities


34,782

24,675






Net decrease in cash and cash equivalents


(69,575)

(149,699)












Cash and cash equivalents at beginning of year


76,866

226,565






Cash and cash equivalents at end of year 
7

7,291

76,866


















NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2015
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 provide seed capital to small companies that are identified as having 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").

Basis of Preparation
The financial statements have been prepared under the historical cost convention with the exception of investments measured at fair value and are in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the European Union, including standards and interpretations issued by the International Accounting Standards Board ("IASB"). 










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.










Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Company
At the reporting date of these financial statements, the following new standard, amendments and interpretations to existing standards have been published but is not yet effective and have not been adopted early by the Company.The standard below is not expected to affect the financial position of the Company however it will require additional disclosure in future financial statements. IFRS 9 has not yet been EU Endorsed.










 IFRS 9 Financial Instruments - Classification and Measurement, effective for annual periods beginning on or after 1 January 2018
The Directors believe that the standard listed above, that has been issued but is not yet effective, will not have a material impact on the Company.

Use of estimates and judgements
The preparation of the financial statements in conformity with IFRS requires the Directors to use judgement and make estimates and assumptions that affect the application of policies and the financial statements. The actual outcome may differ significantly from the estimates. 
(a) Impairment
The Company assessed at the reporting date whether there was any objective evidence that any financial asset was impaired. A financial asset or portfolio of financial assets is impaired and an impairment loss incurred if there is objective evidence that an event or events since initial recognition of the asset have adversely affected the amount or timing of future cash flows from the asset.






















(b) Estimates
The preparation of financial statements in conformity with IFRS requires the use of accounting estimates and exercise of judgement by the management while applying the Company's accounting policies in relation to the value of options issued, as set out in note 10. These estimates are based on the management's best knowledge of the events which existed at the date of issue of the financial statements and at the statement of financial position date however, the actual results may differ from these estimates. 










Foreign currency









(a) Functional and presentational currency
The functional currency of the Company is United Kingdom 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.
(b) Transactions and balances
 Foreign currency monetary assets and liabilities balances are translated into Sterling at the rate of exchange ruling on the last day of the Company's financial year. 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 assets 



The Company classifies its financial assets in the following categories: 
 at fair value through profit or loss
The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

Financial assets at fair value through profit or loss
The Company designates its financial assets as at fair value through profit or loss (FVTPL) as the financial assets are managed and their performance is evaluated on a fair value basis. Financial assets carried at fair value through profit or loss are initially recognised at fair value and any transactions costs are recognised in the statement of comprehensive income. Regular purchases and sales of financial assets are recognised on the trade date, the date on which the Company commits to purchase or sell the investment.
Financial assets are derecognised when the rights to receive cash flows from the investments have expired or the Company has transferred substantially all the risks and rewards of ownership. Financial assets at fair value through profit or loss are subsequently carried at fair value. Any gains or losses on derecognition of investments is calculated after setting the proceeds against the fair value and, in respect of a part disposal, against the fair value at the date of sale. The surplus or loss on realisation is transferred to the statement of comprehensive income. 
Gains or losses arising from changes in the fair value of the 'financial assets at fair value through profit or loss are presented in the statement of comprehensive income in the period in which they arise.
 
Financial liabilities 
Financial liabilities are trade and other payables and are financial liabilities with fixed or determinable payments that are not quoted in an active market. They arise when the Company either receives services from another entity or purchases any security the settlement of which remains outstanding as at the reporting date. Payables are recognised initially at fair value less transaction costs, if any. These are subsequently measured at amortised cost using the effective interest method. Given the short term nature of payables, (period between their origination and settlement), their amortised cost is considered a reasonable estimate of their fair value.
Share capital 
Shares are classified as equity when there is no obligation to transfer cash or other assets.




Cash and cash equivalents



Cash and cash equivalents include cash in hand and deposits held at call with banks. For the purpose of the Statement of Cash Flows, cash and cash equivalents are considered to be all highly liquid investments with maturity of three months or less at inception.
Equity, reserves and dividend payments
Ordinary shares are classified as equity. Share premium includes any premiums received on issue of share capital. Transaction costs associated with the issuing of shares are deducted from share premium. Retained earnings include all current and prior period retained profits. 










Revenue Recognition









Revenue comprises interest income from short term deposits and is recognised on an accruals basis. 
Expenditure









The expenses of the Company are recognised on an accruals basis in the Statement of Comprehensive Income.
 
 Share options
Equity-settled share based payment transactions are measured at the fair value of the goods and services received unless that cannot be reliably estimated, in which case they are measured at the fair value of the equity instruments granted. Fair value is measured at the grant date and is estimated using valuation techniques as set out in note 10. The fair value is recognised in the statement of comprehensive income, with a corresponding increase in equity via the share option account. When options are exercised, the relevant amount in the share option account is transferred to the share premium account.
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 200 has been paid,which has been included in administrative expenses. 
4. EARNINGS PER SHARE










 The calculation of basic earnings per ordinary share is based on the comprehensive loss for the year of (222,239) (2014: (205,606)). The weighted average number of shares in issue during the year was 9,830,300 (2014: 9,830,300). As explained in note 10 there are share options in issue over the Company's ordinary shares. The options would decrease the basic loss per share and as a result there is no dilution effect on the earnings per share, therefore the diluted loss per share is the same as the basic loss per share.












5. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS



2015

2014




 





Sterling Energy plc ("Sterling")


52,500

148,150
Argos Resources Ltd ("Argos")


81,300

135,000
Falkland Oil & Gas Ltd ("Falkland")


394,198

361,650
Pancontinental Oil & Gas NL ("Pancontinental")

8,823

38,088
Total investments


536,821

682,888









On 30 June 2015 the market value of the Company's holding of 1,446,600 (2014: 1,446,600) ordinary fully paid shares in Falkland representing 0.27% (2014:0.27%) of the issued share capital was 394,198 (2014: 361,650) (27.25p per share, (2014: 25.00p)). 
On 30 June 2015 the market value of the Company's holding of 300,000 (2014: 500,000) ordinary fully paid shares in Sterling representing 0.14% (2014:0.23%) of the issued share capital of the Company was 52,500 (2014: 148,150) (17.50p per share, (2014: 29.63p per share)). 200,000 (2014: nil) shares were disposed in the current year.
On 30 June 2015 the market value of the Company's holding of 1,000,000 (2014: 1,000,000) ordinary fully paid shares in Argos, representing 0.46% (2014: 0.46%) of the issued share capital of the company was 81,300 (2014: 135,000) (13.50p per share, (2014: 18.88p per share)). No shares were disposed in the current or prior year.









On 30 June 2015 the market value of the Company's holding of 3,000,000 (2014: 3,000,000) ordinary fully paid shares in Pancontinental, representing 0.26% (2014: 0.26%) of the issued share capital of the company was 8,823 (2014: 38,088) (0.29p per share, (2014: 1.27p per share)). No shares were disposed in the current or prior year.
6. OTHER RECEIVABLES














2015

2014
 















 Prepayments





9,721

7,607
7. CASH AND CASH EQUIVALENTS











2015

2014
 















Cash at bank





7,291

76,866

Cash and cash equivalents are considered to be highly liquid, so that book cost is considered equivalent to fair value. 
8. TRADE AND OTHER PAYABLES











2015

2014
 















 Amounts due to shareholders from returns of capital

-

34,782
 Accrued expenses





31,760

23,049






31,760

57,831
9. SHARE CAPITAL















2015

2014








 Authorised:









 200,000,000 (2014: 200,000,000) ordinary shares of 20p each

40,000,000

40,000,000
200,000,000 (2014: 200,000,000) redeemable "B" shares of 1p
each

2,000,000

2,000,000
 


















 Allotted, calledup and fully paid:




2015
No.

2014
No.

2015

2014





'000

'000




In issue:











 Ordinary shares




9,830.3

9,830.3

1,966,060

1,966,060

Ordinary
shares

Ordinary
shares
Movement
No.

Balance at 30 June 2014 / 30 June 2015
9,830,300

9,830,300




 There were no redemptions or share issues during the year ended 30 June 2015. 
10. SHARE PREMIUM AND SHARE OPTIONS
 






Share PremiumAccount

Share option Account








 1 July 2013



492,103

349,906










Expired redemption of B shares not taken up 



24,675

-
 At 30 June 2014


516,778

349,906










Expired redemption of B shares not taken up 

34,782

-
 At 30 June 2015






551,560

349,906










On 22 September 2009 the Company granted 250,000 share options at a weighted average exercise price of 62p per share.
In 2011 the terms of the options were changed, to give a weighted average exercise price of 17p per share. In 2012 this was changed to 20p per share.

On 5 December 2011 the Company granted 1,500,000 share options at a weighted average exercise price of 20p per share. The fair value of those options granted, after adjusting for the changes in the exercise price, was 184,590 using the Black Scholes valuation model. The adjustment to the option price was omitted, and has been corrected for in the comparative period by a reserve transfer as a prior year adjustment of 56,479.
As at 30 June 2015, options were outstanding over 1,650,000 (2014: 1,650,000) ordinary 20p shares, with a weighted average exercise price of 20p (2014: 20p). The options vested in the year ended 31 December 2012 and are exercisable at the option of the option holder, expiring 31 December 2016. During the year nil (2014: 100,000) options were exercised and nil (2014: 11,808) of the option reserve was released to share premium.
In April 2014, funds held in Escrow in the amount of 24,675 were transferred back to the Company following the expired redemption of B shares which were not taken up. A further amount of 34,782 was transferred back to the company in April 2015
Prior year adjustment: The financial statements have been restated to incorporate the impact of a misclassification pertaining to the share option account prior to 1 July 2013. The change has resulted in retained earnings at 30 June 2015 decreasing by 56,479 with a corresponding increase to the share option account.
11. FINANCIAL RISK
The Company's investment activities expose it to a variety of financial risks: market risk (including currency 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 is not exposed to significant currency risk as it invests in companies listed on the London Stock Exchange, predominately denominated in Sterling and has cash balances denominated in Sterling. 

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 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 2015





536,821
Fair Value Through Profit or Loss, as at 30 June 2014





682,888

The Company's investments are all publicly traded and listed on either the Alternative Investment Market ("AIM") or on the Australian Stock Exchange. The Company's sensitivity to a 15% increase/(decrease) in market price would be 80,523/(80,523) (2014: 102,433/(102,433)). A positive number indicates an increase in the net assets attributable to ordinary shareholders and a negative number indicates a decrease. The 15% increase/(decrease) on the net assets attributable to ordinary shareholders would have the same impact on the post-tax profit for the year. 15% represents management's assessment of a reasonably possible change in the market prices.

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 significantly exposed to interest rate risk as it does not have any borrowings, however, the Company does have short term (<3 months) cash deposits, which exposes the Company to effects of fluctuations in the prevailing levels of market interest rates on its cash flow. 
An increase in the interest rates of 1% would cause the Company's net financial assets to increase by 73 (2014: 769). An equal change in the opposite direction would have decreased the net assets attributable to shareholders by an equal but opposite amount. 1% represents the management's assessment of a reasonably possible change in interest rates.
The following table summarises the Company's exposure to interest rate risks:





Interest rate risk profile
As at 30 June 2015

Up to 
1 year
Over 1
year
Non-interest 
bearing
Total 
Assets




Other receivables
-
-
9,721
9,721
Cash and cash equivalents
7,291
-
-
7,291

7,291
-
9,721
17,012
Liabilities




Trade and other payables
-
-
31,760
31,760





As at 30 June 2014

Up to 
1 year
Over 1
year
Non-interest 
Bearing
Total 
Assets




Trade and other receivables
-
-
7,607
7,607
Cash and cash equivalents
76,866
-
-
76,866

76,866
-
7,607
84,473
Liabilities




Trade and other payables
-
-
57,831
57,831

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 carrying amounts of the financial assets best represent the maximum credit exposure at the end of the reporting period. This also relates to the financial assets carried at cost, as they have a short term to maturity. 

The Directors do not believe the Company is subject to any significant credit risk exposure regarding trade receivables. At the period end date the Company was exposed to credit risk on the investments of which the shareholders are aware. The Directors regularly review the investments held by the Company.

At the end of the reporting period, the Company's financial assets exposed to credit risk amounted to the following:





2015

2014
Investments at Fair Value Through Profit or Loss





536,821

682,888
Other receivables 





9,721

7,607
Cash and cash equivalents





7,291

76,866






553,833

767,361
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 investments held at fair value through profit or loss. The Company's investments at fair value through profit or loss are publicly traded and are deemed highly liquid. 

The following table details the contractual, undiscounted cash flows of the Company's financial liabilities:

As at 30 June 2015

Up to 3 months
Up to
1 year
Over 1
year
Total 
Financial liabilities




Accrued expenses
31,760
-
-
31,760

31,760
-
-
31,760





As at 30 June 2014

Up to 3
Months
Up to 
1 year
Over 1
year
Total 
Financial liabilities




Accrued expenses
23,049
-
-
23,049
Payable to shareholders
-
34,782
-
34,782

23,049
34,782
-
57,831





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 investments held by the Company fall within Level 1 as they are valued by unadjusted quoted prices.

12. DIRECTORS' REMUNERATION AND SHARE OPTIONS

2015

2015

2014

2014

Directors' fees

Options outstanding

Directors' fees

Options outstanding




P J Richardson
4,000

50,000

11,375

50,000
D R King
14,750

-

15,000

-
M Bradlow
8,000

550,000

20,750

550,000
G Walsh
-

500,000

-

500,000
T O'Gorman
-

500,000

-

500,000

26,750

1,600,000

47,125

1,600,000

At the year end the Company owed 1,000 (2014: nil) in outstanding directors' fees. 
Nil share options were issued during the year ended 30 June 2015 (2014: nil) and nil (2014: 100,000) options were exercised during the year. All outstanding options are due to expire 31 December 2016.
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. 

13. RELATED PARTIES 

The preparation of the financial statements of the Company, and Company Secretary services are undertaken by Crestbridge Corporate Services Limited. During the year fees totalling 46,471 (2014: 42,331) were paid to Crestbridge Corporate Services Limited of which 12,360 (2014: 4,750) was outstanding at the year end.
D R King resigned as a Director of Crestbridge Corporate Services Limited on 31 May 2015 and is a an employee of Stonehage Fleming Corporate Services Limited who were appointed as Company Secretary on 17th September 2015.

Fees paid to the Directors are disclosed in note 12.







14. CONTROLLING PARTY
 In the opinion of the Directors the Company does not have a controlling party.









15. SUBSEQUENT EVENTS
On 27 July 2015 the Company sold 200,000 shares in Falkland Oil & Gas Limited for a net consideration of 47,633.
On 19 August 2015 the Company sold 50,000 shares in Falkland Oil & Gas Limited for a net consideration of 11,978.
On 19 November 2015 the market value of the investments that were held at 30 June 2015 not taking into account the above disposals was 254,936 which represents a material decline in the value of the investments from the end of the reporting period. The decline reflects the current market conditions on investments.
On 19 November 2015, the Board of the Company approved a private placement of 6,000,000 shares in the Company at 4p per share to raise 240,000 before expenses. At the same time the Board approved an Open Offer to existing shareholders on a 1 for 1 basis to subscribe for new shares in the Company at 4p per share to raise a further 393,212, before expenses, if fully subscribed.

This information is provided by RNS
The company news service from the London Stock Exchange
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