REG - Westmount Energy Ld - Interim Financial Statements

Westmount EnergyAnnouncement

28/03/2025 07:00

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RNS Number : 5944C  Westmount Energy Limited  28 March 2025

28 March 2025

 

WESTMOUNT ENERGY LIMITED

("Westmount" or the "Company")

 

Interim Results

 

Westmount Energy Limited (UK AIM: WTE.L), the AIM-quoted oil and gas
investment company focussed on the Guyana-Suriname Basin is pleased to
announce its unaudited Interim Results for the six months ended 31 December
2024.

Copies of the Company's results are available on the Company's website,
www.westmountenergy.com.

 

CHAIRMAN'S REVIEW

 

2024 Highlights

 

·      Canje Block, Guyana - in December 2024 the Canje JV partners
secured a 1-year extension to the licence to 4(th) March, 2026.

·      Kaieteur Block, Guyana - Ratio Petroleum farm-down process
continues with a primary objective of bringing a new deepwater operator to the
block before February 2026

·      Ratio Energy Partnership Ltd. proposal to acquire Ratio Petroleum
at 0.35NIS per share unit rejected by shareholders - with merger discussions
between the two parties subsequently announced in January 2025

·      Orinduik Block, Guyana - Eco Atlantic in ongoing farm-down
discussions with interested parties with a view to drilling commitment well to
Cretaceous in 2025

·      Africa Oil Corp, Orange Basin - FID with respect to its first
development on the Venus Field (150k BOPD, 45(o)API oil) expected in early
2026

·      Africa Oil Corp, Orange Basin - carried exposure to ongoing
exploration drilling of giant prospects - Marula-1x already spudded (Q1 2025),
Olympe-1x (Q4 2025) and Nayla-1x (2026)

·      JHI, North Falklands Basin - reawakening of interest in
Production Licence PL001 is anticipated post the expected mid-2025 FID of
neighbouring Sea Lion development

 

 

Investment portfolio summary

 

As of the 31(st) December 2024 Westmount had a cash balance of £0.099M,
listed marketable securities of £0.488M, and is debt free.

 

As of the 31(st) December 2024 Westmount held a total of 5,651,270 shares in
JHI Associates Inc ("JHI"). Upon completion of the Argos-JHI transaction, as
announced on the 25(th) September 2023, and subsequent to the voluntary
liquidation of Argos and the distribution of JHI Consideration Shares to Argos
shareholders it is estimated that Westmount will hold circa 5,684,870 shares
in JHI, representing approximately 6.24% of the enlarged issued share capital
of JHI.

 

As of 31(st) December 2024, Westmount holds 474,816 common shares in Cataleya
Energy Corporation ("CEC") representing approximately 4.13% of the issued
shares in CEC, as of 15(th) March 2024.

 

Westmount continues to hold 1,500,000 shares in Eco (Atlantic) Oil & Gas
Ltd. ("EOG"), representing approximately 0.47% of the common shares in issue
as of 13(th) January 2025.

 

Westmount continues to hold 89,653 shares in Ratio Petroleum representing
approximately 0.04% of the issued share capital.

 

As of 31(st) December 2024, Westmount holds 300,000 shares in Africa Oil Corp
("AOC") representing approximately 0.069% of the issued common shares in AOC
as of 31(st) January 2025. On the 27(th) September 2024 AOC paid a cash
dividend of USD$0.025 per common share. On 7(th) March 2024, following
completion of the 'Reorganization' transaction first announced on the 24(th)
June 2024, AOC declared a quarterly cash dividend of USD$0.037 per common
share, payable on the 11(th) April 2025 to shareholders of record on the
27(th) March 2025.

 

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, and administration costs.

 

 

 

 

Summary/Outlook

Westmount's continues to juggle its liquid resources while seeking value
creation for shareholders via exposure to high impact exploration and
appraisal drilling programs primarily in the two global 'exploration-hotspots'
- deepwater Guyana-Suriname Basin and Orange Basin, Namibia-South Africa.

Exploration drilling in the Guyana-Suriname Basin (outside of the Stabroek
Block and Block 58) has started to pick-up again - with clear visibility in
the Suriname sector to drilling wells during 2025 - at Araku Deep-1 (Shell,
Block 65), Macaw-1 (TotalEnergies, Block 64), Korikori-1 (Chevron, Block 5) in
addition to two exploration wells planned by Petronas for Block 52.
Notwithstanding the more benign fiscal terms available offshore Guyana
uncertainty with respect to the timing of Guyanese drilling remains. Against a
backdrop of a dominant player, sector consolidation and the overhang created
by the protracted arbitration surrounding the Chevron-Hess takeover, separate
farm-down processes are ongoing with respect to the Kaieteur, Canje and
Orinduik blocks. With a 1-year licence extension, in the case of the Canje and
Kaieteur Blocks, secured - successful completion of farm-down discussions or
procurement of other sources of funding, and alignment of incumbent or
incoming operators are the next steps. We believe that all three blocks remain
underexplored and substantially derisked by existing discoveries - Tanager-1
(Kaieteur), Jethro-1 and Joe-1 (Orinduik) and pending developments on the
Stabroek Block, such as Hammerhead and Longtail, which are proximal to the
Orinduik and Canje blocks.

In recent months, exploration drilling activity has continued apace in the
Orange Basin, offshore Namibia - with three wells already completed in early
2025 (Tamboti-1x, Sagittarius-1x and Mopane-3x) - all reporting hydrocarbons
and ongoing evaluation. Westmount's investee, AOC, has announced that
'carried' exploration drilling is continuing on Namibian Blocks 2913B and 2912
throughout 2025 - with Maruala-1x spudded in early February and Olympe-1x,
scheduled for later in the year, to be followed by the drilling of the Nyala
prospect in South African Block 3B/4B in 2026. Westmount's shareholding in AOC
offers continuing exposure to high impact drilling in the Orange Basin but, as
a significant liquid asset, it may also be managed to support working capital
requirements going forwards.

While deepwater exploration continues to be a challenging environment for
junior players we remain confident that exploration drilling success in these
'hotspot' areas will be rewarded by an increased share price. In the meantime,
we continue to manage by optimising cash and liquid resources and by trimming
costs where possible.  In this changing landscape, we also remain open to
consolidation manoeuvres which offer shareholder value.

 

GERARD WALSH

Chairman

27 March 2025

 

 

 

For further information, please contact:

Westmount Energy Limited
www.westmountenergy.com (http://www.westmountenergy.com)

David King,
Director
Tel: +44 (0) 1534 823000

 

 

Cavendish (Nomad and Broker)                         Tel: +44
(0) 131 220 6939

Neil McDonald / Pete Lynch

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 DECEMBER 2024

 

                                                                                        Six months ended     Six months ended

                                                                                        31 December 2024     31 December         Year ended

                                                                                        (unaudited)          2023                30 June 2024

                                                                                        £                    (unaudited)         (audited)

                                                                                                             £                   £
 Net fair value losses on financial assets held at fair value through profit or  (95,066)                    (531,596)           (491,941)
 loss
 Investment income                                                               5,889                       11,762              11,969
 Finance income                                                                  762                         1,928                        3,320
 Administration expenses                                                         (138,622)                   (139,930)           (265,915)
 Foreign exchange losses                                                         (3,229)                     (3,686)             (3,167)

 Operating loss                                                                  (230,266)                   (661,522)           (745,734)

 Loss before tax                                                                 (230,266)                   (661,522)           (745,734)

 Tax                                                                             -                           -                   -

 Comprehensive loss for the period / year                                        (230,266)                   (661,522)           (745,734)

 Basic loss per share (pence)                                                    (0.16)                      (0.46)              (0.52)
 Diluted loss per share (pence)                                                  (0.16)                      (0.46)              (0.52)

 

 

All results are derived from continuing operations.

The Company had no items of other comprehensive income during the period /
year.

 

 

 

CONDENSED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2024

 

                                                        31 December 2024      31 December 2023      30 June 2024

                                                        (unaudited)           (unaudited)           (audited)

                                                        £                     £                     £

 ASSETS
 Non-current assets
 Financial assets at fair value through profit or loss  4,179,220             4,247,606             4,274,285
                                                        4,179,220             4,247,606             4,274,285

 Current assets
 Other receivables                                      32,550                29,397                56,401
 Cash and cash equivalents                              98,886                345,913               222,304
                                                        131,436               375,310               278,705

 Total assets                                           4,310,656             4,622,916             4,552,990

 LIABILITIES AND EQUITY
 Current liabilities
 Trade and other payables                               38,716                36,498                50,784
                                                        38,716                36,498                50,784

 Total liabilities                                      38,716                36,498                50,784

 EQUITY
 Share capital                                          16,652,482            16,652,482            16,652,482
 Share option account                                   469,670               469,670               469,670
 Retained earnings                                      (12,850,212)          (12,535,734)           (12,619,946)
 Total equity                                           4,271,940             4,586,418             4,502,206

 Total liabilities and equity                           4,310,656             4,622,916             4,552,990

 

 

 

 

 

 

CONDENSED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 DECEMBER 2024

 

                                                 Share capital account  Share option account  Retained earnings  Total equity
                                                 £                      £                     £                  £
 As at 1 July 2023                               16,652,482             469,670               (11,874,212)       5,247,940
                                                 -                      -                     (745,734)          (745,734)
 Comprehensive Income
 Loss for the year ended 30 June 2024

 As at 30 June 2024                              16,652,482             469,670               (12,619,946)       4,502,206

 Comprehensive Income
 Loss for the period ended 31 December 2024      -                      -                     (230,266)          (230,266)

 As at 31 December 2024                          16,652,482             469,670               (12,850,212)       4,271,940

 

                                           Share capital account  Share option account  Retained earnings  Total equity
                                           £                      £                     £                  £
 As at 1 July 2022                         16,652,482             469,670               (8,899,942)        8,222,210

 Comprehensive Income
 Loss for the year ended 30 June 2023      -                      -                     (2,974,270)        (2,974,270)

 As at 30 June 2023                        16,652,482             469,670               (11,874,212)       5,247,940

 

 

CONDENSED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 31 DECEMBER 2024

 

                                                                    Six months ended     Six months ended                        Year ended

                                                                    31 December 2024     31 December 2023                        30 June 2024

                                                                    (unaudited)          (unaudited)                             (audited)

                                                                    £                    £                                       £
 Cash flows from operating activities
 Total comprehensive loss for the period / year                     (230,266)            (661,522)

                                                                                                                          (745,734)
 Adjustments for:
 Net loss on financial assets at fair value through profit or loss  95,066               531,596                  491,941
 Movement in other receivables                                      23,851               15,580                   1,552
 Movement in trade and other payables                               (12,069)             (17,941)                 (3,655)
 Net cash outflow from operating activities                         (123,418)            (132,287)                (255,896)

                                                                    (123,418)            (132,287)                (255,896)
 Net decrease in cash and cash equivalents
 Cash and cash equivalents at the beginning of the period / year    222,304              478,200                  478,200
 Cash and cash equivalents at the end of the period / year          98,886               345,913                  222,304

 

 

 

 

NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

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 year ended
30 June 2024. 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 Company's annual financial statements for the year ended
30 June 2024.

 

2. Investments

                                                                       Six months ended       Six months ended       Year

                                                                       31 December 2024       31 December 2023       ended

                                                                                                                     30 June

                                                                                                                     2024
                                                                       (unaudited)            (unaudited)            (audited)
                                                                       £                      £                      £

 Africa Oil Corp, at market value                                      328,342                442,680                423,244
 Cost, 300,000 shares                                                  534,836                534,836                534,836
 (31 December 2023: 300,000 shares, 30 June 2024: 300,000 shares)

 Cataleya Energy Corporation, at market value                          1,480,915              1,454,796              1,467,155
 Cost, 474,816 shares                                                  3,751,906              3,751,906              3,751,906
 (31 December 2023: 474,816 shares, 30 June 2024: 474,816 shares)

 Eco Atlantic Oil & Gas Oil Limited, at market value                   160,500                165,000                198,000
 Cost, 1,500,000 shares                                                240,000                240,000                240,000
 (31 December 2023: 1,500,000 shares, 30 June 2024: 1,500,000 shares)

 JHI Associates Inc, at market value                                   2,203,996              2,182,521              2,182,521
 Cost, 5,651,270 shares                                                7,770,027              7,770,027              7,770,027
 (31 December 2023: 5,651,270 shares, 30 June 2024: 5,651,270 shares)

 Ratio Petroleum Energy Limited Partnership shares, at market value    5,467                  2,609                  3,365
 Cost, 89,653 shares                                                   22,256                 22,256                 22,256
 (31 December 2023: 89,653 shares, 30 June 2024: 89,653 shares)

 Total market value                                                    4,179,220              4,247,606              4,274,202
 Total cost                                                            12,319,025             12,319,025             12,319,025

NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024 (CONTINUED)

 

2. Investments (continued)

                                           Six months ended       Six months ended       Year

                                           31 December 2024       31 December 2023       ended

                                                                                         30 June

                                                                                         2024
                                           (unaudited)            (unaudited)            (audited)
                                           £                      £                      £

 Total fair value adjustment               (8,139,806)            (8,071,420)            (8,044,740)
 Reverse prior year fair value adjustment  8,044,740              7,850,598              7,850,598
 Current period fair value movement        (95,066)               (220,822)              (194,142)

 Unrealised loss                           (95,066)               (220,822)              (194,142)
 Realised loss                             -                      (310,774)              (297,799)
 Current period income statement impact    (95,066)               (531,596)              (491,941)

 

 

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