REG - Westmount Energy Ld - Interim Results

Westmount EnergyAnnouncement

21/03/2018 07:05

RNS Number : 3591I
Westmount Energy Limited
21 March 2018
 

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 2017. 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
2017 Highlights
 
·      Continued Focus on Guyana-Suriname Basin
 
·      Operating Profit of £197,645 for the 6 month period to December 31, 2017
 
·      Strategic Investment in Eco (Atlantic) Oil and Gas Limited to gain exposure to the Guyana offshore shows strong performance
 
·      Evaluation of Exploration & Production opportunities with potential for a substantial transaction continue
 
The second half of 2017 was characterised by a continuing improvement in oil prices and investor sentiment towards the sector. In addition, offshore Guyana is proving to be a major exploration hotspot with a string of significant oil discoveries announced by ExxonMobil throughout 2017 and into early 2018 and the announcement by Total of a multi-block farm-in on the 5th February 2018, subject to approval by the relevant authorities.  These elements have contributed to rising asset prices and this improvement is reflected in your Company's financial performance with a net operating profit of £197,645 for the six months to 31 December 2017.
 
The net operating profit results in the main from the share price performance of your Company's strategic investment in Eco (Atlantic) Oil & Gas ('EOG'). As at 20 March 2018, the EOG investment has more than doubled in value since our investment in February 2017 and continues to provide Westmount shareholders with exposure to Guyanese offshore exploration activity. EOG has recently been recognised as a 2018 TSX Venture 50™ company - an annual ranking of top-performing companies on the TSX Venture Exchange (the 'TSX-V') over the last year- achieving a 'top 10' status in the oil and gas sector, one of the five main sectors on the TSX-V.  This accolade reflects, inter alia, two achievements, namely the announcement of the Orinduik Farm-in option agreement with Total E&P Activités Pétrolières, ("Total") on 26th September 2017, which grants Total the option to acquire a 25% working interest in the Orinduik Block; and secondly, the Strategic Alliance and Share Subscription Agreement with Africa Oil Corporation, announced on 13th November 2017, which raised gross proceeds of CAD$14 million.
 
In addition to the general improvement in the London listed Oil & Gas sector, the ExxonMobil led exploration programme on the Stabroek Block, offshore Guyana, continues to deliver excellent results. On the 28th February 2018 ExxonMobil announced a further oil discovery, Pacora-1, the 7th major oil discovery on the block since May 2015 - adding to previous world-class discoveries at Liza, Payara, Snoek, Liza Deep, Turbot and Ranger, which are estimated to contain more than 3.2 billion recoverable oil-equivalent barrels.
Continued success on the Stabroek Block is likely to increase the industry's interest in the Guyanese offshore sector and should continue to support investor interest in EOG and other quoted companies offering investment exposure to this world class deep-water play.
Outlook
Your Company's focus continues to be to seek exposure to exploration opportunities in the Guyana-Suriname basin. Although competition has increased in this space, we believe that significant opportunities remain with the Westmount platform presenting an opportunity to create a London listed and financed vehicle with exploration exposure to the Guyana offshore play.
 
While Guyana is a primary focus, we continue to evaluate other investment and potential transaction opportunities. We will update investors on any significant developments at the earliest opportunity.
 
 
GERARD WALSH
Chairman
20 March 2018
 
 
For further information, please contact:
 
Westmount Energy Limited                             www.westmountenergy.com
David King, Director                                            Tel: +44 (0) 1534 823133
Jane Vlahopoulou                                              
 
Cenkos Securities plc (Nomad and Broker)
Nicholas Wells                                                  Tel: +44 (0) 20 7397 8900
Elizabeth Bowman
 
 
 
 
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2017
 








Six months ended
31 Dec 2017
(unaudited)
£






Six months ended
31 Dec 2016
(unaudited)
£






Year ended
30 Jun 2017
(audited)
£




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


254,106






(38,368)






(8,682)




Administration expenses


(53,461)






(97,796)






(188,818)




Share options expensed


(3,000)






-






(3,000)






























Operating profit / (loss)


197,645






(136,164)






(200,500)






























Profit / (loss) before tax


197,645






(136,164)






(200,500)






























Tax


-






-






-






























Comprehensive profit / (loss)  for the period / year


197,645






(136,164)






(200,500)
























































Basic profit / (loss) per share (pence)


0.48






(0.60)






(0.79)




Diluted profit / (loss) per share


0.39






(0.60)






(0.79)




 
 
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 2017
 








31 Dec 2017
(unaudited)
£






31 Dec 2016
(unaudited)
£






30 Jun 2017
(audited)
£






























ASSETS
























Non-current assets
























Financial assets at fair value through profit or loss


974,697






239,205






720,591




Current assets
























Other receivables


2,984






5,468






10,778




Cash and cash equivalents


466,839






234,516






548,042








469,823






239,984






558,820






























Total assets


1,444,520






479,189






1,279,411
























































LIABILITIES AND EQUITY
























Current liabilities
























Trade and other payables


38,200






17,702






73,736






























EQUITY
























Share capital


3,772,244






3,027,221






3,772,244




Share option account


355,906






349,906






352,906




Retained earnings


(2,721,830)






(2,915,640)






(2,919,475)




Total equity


1,406,320






461,487






1,205,675






























Total liabilities and equity


1,444,520






479,189






1,279,411






























 
 
 
 
 
CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2017
 




 


Share capital account
£


Share premium account
£


Share option account
£


Retained earnings
£


Total equity
£




As at 1 July 2016


2,966,120


-


349,906


(2,718,975)


597,651




Comprehensive Income
Loss for the year ended 30 June 2017


-


-


-


(200,500)


(200,500)




Transactions with owners
Subscription and open offer at 5p per nil par value ordinary share


805,524


-


-


-


805,524




Share options expensed


-


-


3,000


-


3,000




As at 30 June 2017


3,772,244


-


352,906


(2,919,475)


1,205,675




Comprehensive Income


 


 


 


 


 




Profit for the period ended 31 December 2017


-


-


-


197,645


197,645




Transactions with owners


 


 


 


 


 




Share options expensed


-


-


3,000


-


3,000




As at 31 December 2017


3,772,244


-


355,906


(2,721,830)


1,406,320




 




 


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 (as previously reported)


-


-


-


(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)


-


-


-




Prior year adjustment


(60,501)


-


-


60,501


-




As at 30 June 2016


2,966,120


-


349,906


(2,718,975)


597,651




 
 




 
CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2017
 








Six months ended
31 Dec 2017
(unaudited)
£






Six months ended
31 Dec 2016
(unaudited)
£






Year ended
30 Jun 2017
(audited)
£




Cash flows from operating activities
























Total comprehensive profit / (loss) for the period / year


197,645






(136,164)






(200,500)


 




Adjustments for net (profit) / loss on financial assets at fair value through profit or loss


(254,106)






38,368






8,682


 




Adjustment for share options expensed


3,000






-






3,000


 




Decrease / (increase) in other receivables


7,794






4,556






(755)


 




(Decrease) / increase in trade and other payables


(35,536)






(13,685)






42,349


 




Purchase of investments


-






(61,275)






(561,274)


 




Proceeds from sale of investments


-






-






48,300


 




Net cash out flow from operating activities


(81,203)






(168,200)






(660,198)


 




 






















 




Cash flows from financing activities






















 




Receipt of loan from Director


-






-






300,000


 




Repayment of loan from Director


-






-






(300,000)


 




Proceeds from issue of ordinary shares


-






-






805,524


 




Net cash generated from financing activities


-






-






805,524


 




 






















 




Net (decrease) / increase in cash and cash equivalents


(81,203)






(168,200)






145,326


 




Cash and cash equivalents at the beginning of the period / year


548,042






402,716






402,716


 




Cash and cash equivalents at the end of the period / year


466,839






234,516






548,042


 















 
 
 
NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2017
 
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 30 June 2017. 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 2017.
 
 
2. Investments








Six months ended
31 December 2017






Six months ended
31 December 2016






Year
ended
30 June
2017








(unaudited)






(unaudited)






(audited)








£






£






£






























Sterling Energy PLC, at market value


-






45,000






-




Cost, nil shares


-






517,838






-




(31 December 2016: 300,000 shares, 30 June 2017: nil shares)


















































Argos Resources Limited, at market value


28,000






45,000






30,000




Cost, 1,000,000 shares


310,775






310,775






310,775




(31 December 2016: 1,000,000 shares, 30 June 2017: 1,000,000 shares)


















































Eco Atlantic Oil & Gas Oil Limited, at market value


790,625






-






531,250




Cost,  3,125,000 shares


500,000






-






500,000




(31 December 2016: nil shares, 30 June 2017: 3,125,000 shares)


















































Rockhopper Exploration plc, at market value


75,210






81,477






80,582




Cost, 358,142 shares


799,081






799,081






799,081




(31 December 2016: 358,142 shares, 30 June 2017: 358,142 shares)


















































Pancontinental Oil and Gas NL, at market value


6,938






7,032






1,772




Cost, 3,000,000 shares


393,246






393,246






393,246




(31 December 2016: 3,000,000 shares, 30 June 2017: 3,000,000 shares)


















































JHI Associates Inc, at market value


73,923






60,696






76,987




Cost, 100,000 shares
























(31 December 2016: 100,000 shares, 30 June 2017: 100,000 shares)


61,274






61,274






61,274






























Total market value


974,696






239,205






720,591






























Total cost


2,064,376






2,082,214






2,064,376






























Current period movement


(1,089,680)






(1,843,009)






(1,343,785)




Reverse prior year FV adjustment


1,343,784






1,804,641






1,804,641








254,106






(38,368)






460,856






























Realised (loss)


-






-






(469,538)




Unrealised gain / (loss)


254,106






(38,368)






460,856




Current period income statement impact


254,106






(38,368)






(8,682)




 






















 















 



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