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

Westmount EnergyAnnouncement

31/03/2017 07:08

RNS Number : 0987B
Westmount Energy Limited
31 March 2017
Westmount Energy Limited
("Westmount" or the "Company")
Interim Results
The Company is pleased to announce its Interim Results for the six months ended 31 December 2016. A copy of the results is available on the Company's website, www.westmountenergy.com, and will be posted to shareholders shortly.
CHAIRMAN'S REVIEW
The period under review continued to be a challenging and uncertain time for the Oil & Gas industry but there were continued signs of improvement. 
From a Westmount perspective, the more stable oil price and improved investor sentiment towards the E&P sector has given rise to some opportunities which should enable the process of repositioning your Company as a niche exploration and production investor in the conventional oil and gas sector. 
We have identified the Guyana offshore basin as an area of interest and in line with our strategy, on February 8, 2017, we announced a 500k strategic investment in Eco (Atlantic) Oil & Gas Ltd ("EOG") at a price of 16 pence per ordinary share as part of the EOG IPO on AIM.
EOG successfully raised GBP5.09 million in an oversubscribed placing, which is further evidence of the improvement in investor sentiment and interest in ECO's Guyanese and Namibian exploration permits. Westmount holds 2.6% approximately of EOG's issued share capital and EOG is the only junior E&P company listed on AIM with exposure to offshore Guyana, which is emerging as a major oil province.
The primary motive for the investment in EOG was to offer Westmount shareholders a low entry cost exposure to the 1,800 km2 Orinduik offshore block in the Guyana basin. The Orinduik block is operated by Tullow Oil Plc and is adjacent to, and updip of, the Stabroek Block operated by ExxonMobil. Stabroek contains the world-class Liza & Payara oil discoveries, which are estimated by ExxonMobil to have recoverable resources of approximately 1.4 - 2 billion boe. ExxonMobil is currently drilling the Snoek exploration well which is also located a short distance from the Orinduik block and well results are expected shortly. I expect to see significant exploration activity in the region over the coming years and would like to expand Westmount's interest in this exciting exploration region.
The Interim Financial Statements show a loss for the period of 136,164 of which 38,368 relates to a write down of the value of the portfolio. 
Portfolio 
The recent addition of the investment in ECO (Atlantic) Oil & Gas Ltd ('EOG') has transformed the portfolio.
We continue to hold our legacy investments with exposure to the Falkland Islands, namely Rockhopper and Argos. The share price performance of these holdings continues to be in line with weak oil prices. We have recently disposed of the remaining holding of Sterling Energy Plc for re investment in EOG. 
FUTURE
The Board has carefully assessed the cash position of the Company and believes that the corporate overhead has been reduced as much as possible at the current time. The Board continues to believe that the current Westmount corporate structure and AIM listing provides an ideal platform to leverage on new investment opportunities or provide a vehicle for corporate transactions.
Westmount continues to seek and evaluate corporate transactions and investment opportunities with a focus on the Guyana offshore area. The Board would expect to finance any future corporate transactions via the AIM market platform. 
Finally, I thank our shareholders and stakeholders for their continued support.
GERARD WALSH 
Chairman 
30 March 2017
For further information, please contact:
Westmount Energy Limited
www.westmountenergy.com
David King, Director
Tel: +44 (0)1534 823028






Cenkos Securities plcNomad and Broker
Tel: +44 (0)20 7397 8900
Nicholas Wells / Elizabeth Bowman (Corporate Finance)


CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2016

Six months ended 
31 Dec 2016
(unaudited)

Six months ended 
31 Dec 2015
(unaudited)

Year ended
30 Jun 2016
(audited)
Net loss on financial assets held at fair value through profit or loss 
(38,368)

(284,950)

(260,911)
Administration expenses
(97,796)

(77,857)

(173,112)






Operating loss
(136,164)

(362,807)

(434,023)






Loss before tax
(136,164)

(362,807)

(434,023)






Tax


-

-






Comprehensive loss for the period / year
(136,164)

(362,807)

(434,023)












Basic loss per share (pence)
(0.01)

(0.02)

(2.59)
Diluted loss per share
(0.01)

(0.02)

(2.59)
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 2016

31 Dec 2016
(unaudited)

31 Dec 2015
(unaudited)

30 Jun 2016
(audited)






ASSETS





Non-current assets





Financial assets at fair value through profit or loss
239,205

192,261

216,299
Current assets





Other receivables
5,468

9,451

10,023
Cash and cash equivalents
234,516

494,245

402,716

239,984

503,696

412,739






Total assets
479,189

695,957

629,038












LIABILITIES AND EQUITY





Current liabilities





Trade and other payables
17,702

27,090

31,387






EQUITY





Share capital
3,027,221

3,027,221

3,027,221
Share option account
349,906

349,906

349,906
Retained earnings
(2,915,640)

(2,708,260)

(2,779,476)
Total equity
461,487

668,867

597,651






Total liabilities and equity
479,189

695,957

629,038






CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2016
Share capital account
Share premium account
Share option account
Retained earnings
Total equity
As at 1 July 2015
1,966,060
551,560
349,906
(2,345,453)
522,073
Comprehensive Income
Loss for the year ended 30 June 2016
-
-
-
(434,023)
(434,023)
Transactions with owners 
Open offer at 4p per 20p ordinary share
509,601
-
-
-
509,601
Conversion of 20p ordinary shares to nil par value shares
551,560
(551,560)
-
-
-
As at 30 June 2016
3,027,221
-
349,906
(2,779,476)
597,651
Total Comprehensive Income
Loss for the period ended 31 December 2016
-
-
-
(136,164)
(136,164)
As at 31 December 2016
3,027,221
-
349,906
(2,915,640)
461,487
Share capital account
Share premium account
Share option account
Retained earnings
Total equity
As at 1 July 2014
1,966,060
516,778
349,906
(2,123,214)
709,530
Total Comprehensive Income
Loss for the year ended 30 June 2015
-
-
-
(222,239)
(222,239)
Transactions with owners
Expired redemption of B shares not taken up
-
34,782
-
-
34,782
As at 30 June 2015
1,966,060
551,560
349,906
(2,345,453)
522,073
CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2016

Six months ended 
31 Dec 2016
(unaudited)

Six months ended 
31 Dec 2015
(unaudited)

Year ended
30 Jun 2016
(audited)
Cash flows from operating activities





Total comprehensive loss for the period / year
(136,164)

(362,807)

(434,023)
Adjustments for net loss on financial assets at fair value through profit or loss
38,368

284,949

260,911
Decrease / (increase) in other receivables 
4,556

270

(302)
Decrease in trade and other payables
(13,685)

(4,670)

(373)
Purchase of investments
(61,275)

-

-
Proceeds from sale of investments
-

59,611

59,611
Net cash out flow from operating activities
(168,200)

(22,647)

(114,176)





Cash flows from financing activities





Proceeds from issue of ordinary shares
-

509,601

509,601
Net cash generated from financing activities
-

509,601

509,601





Net increase / (decrease) in cash and cash equivalents
(168,200)

486,954

395,425
Cash and cash equivalents at the beginning of the period / year
402,716

7,291

7,291
Cash and cash equivalents at the end of the period / year
234,516

494,245

402,716
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS 
FOR THE PERIOD ENDED 31 DECEMBER 2016
1. Accounting Policies
Basisof 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 30 June 2016. 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 30 June 2016.
2. Investments 

Six months ended 
31 December 2016

Six months ended 
31 December 2015

Year 
ended
30 June 
2016

(unaudited)

(unaudited)

(audited)









Sterling Energy PLC, at market value
45,000

43,500

45,750
Cost, 300,000 shares
517,838

517,838

517,838
(31 December 2015: 300,000 shares, 30 June 2016: 300,000 shares)











Argos Resources Limited, at market value
45,000

45,000

37,500
Cost, 1,000,000 shares
310,775

310,775

310,775
(31 December 2015: 1,000,000 shares, 30 June 2016: 1,000,000 shares)











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

99,318

-
Cost, nil shares
-

799,081

-
(31 December 2015: 1,196,600 shares, 30 June 2016: nil shares)











Rockhopper Exploration plc ("Rockhopper"), at market value
81,477

-

128,036
Cost, 358,142 shares
799,081

-

799,081
(31 December 2015: nil shares, 30 June 2016: 358,142 shares)











Pancontinental Oil and Gas NL ("Pancontinental"), at market value
7,032

4,443

5,013
Cost, 3,000,000 shares
393,246

393,246

393,246
(31 December 2015: 3,000,000 shares, 30 June 2016: 3,000,000 shares)











JHI Associates Inc ("JHI"), at market value
60,696

-

-
Cost, 100,000 shares 





(31 December 2015: nil shares, 30 June 2016: nil shares)
61,274

-

-






Total market value
239,205

192,261

216,299






Total cost
2,082,214

2,020,940

2,020,940






Current period movement
(1,843,009)

(1,828,679)

(1,804,641)
Reverse prior year FV adjustment
1,804,641

1,651,067

1,651,067

(38,368)

(177,612)

(153,574)






Realised (loss)
-

(107,337)

(107,337)
Unrealised (loss)/gain
(38,368)

(177,612)

(153,574)
Current period income statement impact
(38,368)

(284,949)

(260,911)





This announcement contains inside information.

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