TIDMWTE
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 GBP197,645 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 5(th)
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 GBP197,645 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(TM) 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 26(th)
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 13(th) 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 28(th) February 2018 ExxonMobil announced a further
oil discovery, Pacora-1, the 7(th) 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 PERIODED 31 DECEMBER 2017
Six months Six months Year ended
ended ended
31 Dec 2017 31 Dec 2016 30 Jun
2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
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 31 Dec 30 Jun
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
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 PERIODED 31 DECEMBER 2017
Share Share Share
capital premium option Retained Total
account account account earnings equity
GBP GBP GBP GBP GBP
---------------------- ----------- ---------- ---------- ------------- -----------
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 Share Share
capital premium option Retained Total
account account account earnings equity
GBP GBP GBP GBP GBP
-------------------- ----------- ----------- ---------- ------------- -----------
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 Six months
ended ended Year ended
31 Dec 31 Dec 30 Jun
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
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 Six months Year
ended ended ended
31 December 31 December 30 June
2017 2016 2017
(unaudited) (unaudited) (audited)
GBP GBP GBP
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
END
IR LLFITVFIIFIT
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