REG - Westmount Energy Ld - Half Yearly Report <Origin Href="QuoteRef">WNRG.L</Origin>

Westmount EnergyAnnouncement

31/03/2015 07:30

RNS Number : 8865I
Westmount Energy Limited
31 March 2015
Westmount Energy Limited
("Westmount" or the "Company")
Interim Results
The Company is pleased to announce its Interim Results for the period ended 31 December 2014. A copy of the results is available on the Company's website, www.westmountenergy.com, and will be posted to shareholders.
CHAIRMAN'S REVIEW
When I last reported to you, I referred to the ongoing review of various corporate and transaction opportunities. The uncertainty generated by the rapid fall in the oil price resulted in a number of proposals and discussions regarding possible transactions to be being terminated or put on hold. In light of the new oil price environment, I have renewed efforts to assess opportunities to create value for shareholders. As previously stated, should a value enhancing proposal materialise, Westmount shareholders should be afforded the opportunity to participate.
The past six months has seen an acute adjustment in the oil price. The price move was prompted by OPEC's decision last November to leave production quotas unchanged and OPEC's desire to maintain market share. At the time there was an excess supply of approximately 2 million barrels per day in world oil production; however the 60% price fall in light of an effective 2% excess daily supply may be overdone in the longer term. There have been a number of unintended consequences as a result of the rapid pace of the oil price fall, with many smaller OPEC members hurting financially. So the next OPEC meeting together with geo-political events should be closely watched and could further impact on the commodity price.
As oil & gas exploration & production companies adjust to the new price environment, their share prices have reacted negatively to the lower oil price outlook as well as each company's particular challenges. These challenges include, asset valuation write downs, reduced cash flow, unprofitable production, unsustainable debt levels, lack of exploration capital and tougher farm out market. Some companies face a combination of all of the above and may fail.
For others with capital and proven management teams there should be opportunities.
While Westmount's portfolio has suffered from exposure to falling share prices of some holdings in the portfolio, fortunately, Westmount's largest investment holding, Falklands Oil & Gas Limited, has the following positive attributes:
 Exposure to up to 5 exploration wells in both the North and South Falklands Island basins, most of which are carried by third parties, 
 Targeting 1.4 billion barrels of gross prospective resources,
 Cash of c.US$100m at 31 December 2014, and no debt, 
 Interest of at least 40% in each licence ensures their shareholders will have substantial equity exposure to these resources in the case of success.
On March 6th Falkland Oil and Gas Limited made an announcement on the commencement of their 2015 drilling programme, which is available for you to view: 
http://www.fogl.com/fogl/en/Media/pressreleases?id=168.
The Falkland Oil & Gas Limited share price has recovered recently reflecting the above fundamentals. I remain hopeful that our investment exposure to the Falklands could recover shareholder value over the current drilling campaign. 
As mentioned above, other holdings in the portfolio have underperformed relative to FOGL. During the period under review the board agreed to dispose of 200,000 shares in Sterling Energy PLC to raise 50,582 for general and corporate overheads. Westmount still retains 300,000 shares in Sterling Energy PLC.
Finally, Mr Peter Richardson, a long serving director, recently resigned from the board. I wish to thank him for his support and contribution to Westmount and wish him well for the future.
Gerard Walsh
Chairman
31 March 2015
Enquiries:-
David King
Westmount Energy Limited Tel: 01534 835660
Nicholas Wells/Elizabeth Bowman
Nomad and Broker
Cenkos Securities plc Tel: 020 7397 8900
www.cenkos.com


CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2014





Six months ended

Six months ended

Year ended





31 Dec 2014

31-Dec-13

30-Jun-14





(unaudited)

(unaudited)

(audited)







Income statement










Net (loss) / gain on financial assets held at fair value through profit or loss








 (30,685)

 88,305 

 (63,287)
Administration expenses


 (59,659)

 (69,873)

 (142,319)























Operating loss


 (90,344)

 18,432 

 (205,606)













Loss before tax


 (90,344)

 18,432 

 (205,606)













Tax



 - 

 - 

 - 
Comprehensive loss for the period


 (90,344)

 18,432 

 (205,606)













Basic (loss) / gain per share (pence)


 (0.92)

 0.19 

 (2.10)













Diluted gain / (loss) per share


 (0.92)

 0.19 

 (2.10)


























All results are derived from continuing operations.
The Company had no items of other comprehensive income during the period.

CONDENSED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2014





31 Dec 2014

31-Dec-13

30-Jun-14





(unaudited)

(unaudited)

(audited)







ASSETS











Non current assets











Financial assets at fair value through profit or loss
601,621

 834,480 

682,888
Current assets











Other receivables


 1,522 

 4,962 

 7,607 

Cash and cash equivalents


 69,326 

 154,843 

 76,866 































 70,848 

 159,805 

 84,473 


























Total assets


 672,469 

 994,285 

 767,361 













LIABILITIES AND EQUITY










Current liabilities











Trade and other payables


 53,283 

 85,392 

 57,831 























EQUITY 












Share Capital


 1,966,060 

 1,966,060 

 1,966,060 

Share Premium Account


 516,777 

 492,103 

 516,778 

Share Option Account


 293,427 

 293,427 

 293,427 

Retained earnings


 (2,157,078)

 (1,842,697)

 (2,066,735)













Total equity


 619,186 

 908,893 

 709,530 













Total liabilities and equity


 672,469 

 994,285 

 767,361 

CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2014

Share capital
Share premium
Share option
Retained 


Account
Account
Account
Earnings
Total equity














As at 1 July 2013
 1,966,060 
 492,103 
 293,427 
 (1,861,129)
 890,461 













Total comprehensive income










Loss for the year ended 30 June 2014
 - 
 - 
 - 
 (205,606)
 (205,606)













Transaction with owners










Expired redemption - B shares not taken up
 - 
 24,675 
 - 
 - 
 24,675 
Issue of ordinary shares
 - 
 - 
 - 
 - 
 - 
Premium on shares issued
 - 
 - 
 - 
 - 
 - 
Cost of share options
 - 
 - 
 - 
 - 
 - 

 - 
 24,675 
 - 
 - 
 24,675 











As at 30 June 2014
 1,966,060 
 516,778 
 293,427 
 (2,066,735)
 709,530 













Total comprehensive income










Profit for the period ended 31 Dec 2014
 - 
 - 
 - 
 (90,344)
 (90,344)













As at 31 December 2014
 1,966,060 
 516,778 
 293,427 
 (2,157,079)
 619,186 

Account
Account
Account
Earnings
Total equity







As at 1 July 2012
 1,946,060 
 480,295 
 305,235 
 (1,106,038)
 1,625,552 






Total comprehensive income





Loss for the year ended 30 June 2013
 - 
 - 
 - 
 (755,091)
 (755,091)






Transaction with owners





Issue of ordinary shares
 20,000 
 - 
 - 
 - 
 20,000 
Premium on shares issued
 - 
 11,808 
 - 
 - 
 11,808 
Costs of share options
 - 
 - 
 (11,808)
 - 
 (11,808)

 20,000 
 11,808 
 (11,808)
 - 
 20,000 






At 30 June 2013
 1,966,060 
 492,103 
 293,427 
 (1,861,129)
 890,461 

CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2014





Six months ended

Six months ended

Year ended





31 Dec 2014

31-Dec-13


30-Jun-14





(unaudited)

(unaudited)

(audited)







Net Cash (outflows) from 










operating activities


 (58,123)

 (71,722)

 (174,374)


























Cash flows from investing activities










Sale of investments


 50,582 

 - 

 - 
Net cash generated from investing activities

 50,582 

 - 

 - 


























Cash flows from financing activities






Expired redemption - B Shares not taken up


 - 

 - 

24,675
Net cash used in financing activities


 - 

 - 

24,675


























Net (decrease) in cash and cash equivalents
 (7,541)

 (71,722)

 (149,699)











Cash and cash equivalents at the beginning of the period
76,866

226,565

226,565











Cash and cash equivalents at the end of the period

69,325

154,843

76,866
Reconciliation of net cash flow from operating activities




Six months ended

Six months ended

Year ended




31 Dec 2014

31-Dec-13

30-Jun-14




(unaudited)

(audited)

(audited)


















Total comprehensive (loss) / income for the period
(90,344)

18,432

(205,606)
Adjustment for unrealised (gain) /loss on investments at fair value through profit or loss
(263,960)

(88,305)

63,287
Adjustments for realised gains on investments at fair value through profit or loss
294,644

-

-
Decrease in prepayments and accrued income
6,086

2,680

35
Decrease in creditors and accrued expenses
(4,548)

(4,529)

(32,090)
Net cash out flow from operating activities
(58,122)

(71,722)

(174,374)

NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2014
1. Accounting Policies
Basis of accounting
The interim financial statements have been prepared in accordance with the International Accounting Standard ("IAS") 34, Interim Financial Reporting.
The interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company's annual financial statements for the period to 31 December 2014. The annual financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS").
The same accounting policies and methods of computation are followed in the interim financial statements as in the annual financial statements for the period ended 31 December 2014.
2. Investments

Six months ended

Six months ended

Year ended

31-Dec-14

31-Dec-13

30-Jun-14

(unaudited)

(unaudited)

(audited)









Sterling Energy PLC, at market value
58,620

216,250

148,150
Cost, 300,000 shares
517,838

863,064

863,064
(31 December 2013: 500,000, 30 June 2014: 500,000 shares)











Argos Resources Limited, at market value
145,000

145,000

135,000
Cost, 1,000,000 shares
310,775

310,775

310,775
(31 December 2013: 1,000,000, 30 June 2014: 1,000,000 shares)











Falkland Oil and Gas Limited ("Falkland"), at market value
296,553

374,380

361,650
Cost, 1,446,600 shares
966,029

966,029

966,029
(31 December 2013: 400,000 shares, 30 June 2014: 1,446,000 shares)*











Pancontinental Oil & Gas NL ("Pancontinental"), at market value
101,448

98,850

38,088
Cost, 3,000,000 shares
393,246

393,246

393,246
(31 December 2013: 3,000,000 shares, 30 June 2014: 3,000,000 shares)











Total market value
601,621

834,480

682,888

2,187,888

2,533,114

2,533,114
Total cost








Current period movement
(1,586,267)

(1,698,634)

(1,850,226)
Reverse prior year FV adjustment
1,850,226

1,786,939

1,523,283

263,959

88,305

(326,943)






Realised (loss)/gain
(294,644)

-

263,656
Unrealised gain/(loss)
263,959

88,305

(326,943)
Current period income statement impact
(30,685)

88,305

(63,287)
On 9 December 2013 Desire was acquired by Falkland and 2,000,000 ordinary shares in Desire were converted into 1,246,600 ordinary shares in Falkland.
*Includes 1,246,600 ordinary shares received following Falklands acquisition of Desire Petroleum PLC. 

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