RNS Number:7909Q
Westmount Energy Limited
26 March 2008
26 March 2008
CONTACTS:
Westmount Energy Limited Tel: 01534 814209
Paul Anderson,
Director
Ruegg & Co Limited Tel: 020 7584 3663
Gavin Burnell
Brett Miller
PRESS RELEASE
WESTMOUNT ENERGY LIMITED
INTERIM RESULTS FOR THE SIX MONTHS
ENDED 31 DECEMBER 2007
The Board of Westmount Energy Limited (the "Company") today announces the
interim results of the Company for the six months ended 31 December 2007.
These results will be available to download from the Company's website
www.westmount-energy.co.uk and will be posted to shareholders today.
Note for Editors:
Westmount Energy Limited is a Jersey based AIM quoted Energy Investment Company.
Its present investments include 30,000,000 shares of AIM quoted Sterling Energy
plc, 5,200,000 shares of AIM quoted Desire Petroleum plc and 244,000 shares of
presently unquoted Eclipse Energy UK plc. The Company has no borrowings.
________________________________________________________________________________
SUMMARY AND OBJECTIVE
The condensed information contained in this unaudited half-yearly financial
report has been prepared in accordance with pronouncements on interim reporting
issued by the Accounting Standards Board (ASB). The information has been
prepared on the basis of the accounting policies set out in the company's most
recent audited annual financial statements for the year ended 30 June 2007.
CHAIRMAN'S HALF-YEAR REVIEW
I trust you will have seen the announcement earlier this month of the
resignation of our previous Chairman Alan Levison who due to other commitments
could no longer continue his role as Chairman and Director of our company. I
would like to thank Alan for his contribution to the company and wish him well
for the future.
The six months under review reflect the change of direction forecast by my
predecessor's statement issued with the Annual Report and Accounts in November
2007 wherein we indicated that we would be concentrating on managing our
investments for realisation so as to create value for our shareholders.
We thus took the opportunity in September 2007 to dispose of our holding of
3,762,268 shares in CDS Oil and Gas at 22p per share which resulted in a net
cash profit for the company after all costs of £289,071 and added £825,194 to
our Treasury Funds. This is especially welcome considering the financial
uncertainty and volatility of the current financial markets.
As we had the extra liquidity, we took advantage of the weakness of our share
price, and bought back for cancellation 315,500 ordinary shares at an average
price of 79p inclusive of all costs for £249,309. The net asset value of the
company at the time of purchase was 116p and it thus made good commercial sense
to once more initiate the Share Buy Back plan.
We have been disappointed with the share price performance of our holding in
Sterling Energy but we nevertheless believe that the next six months should see
results from the drilling programs being initiated that will further improve the
flow rate of the Chinquetti field in Mauritania and the already announced
drilling programme for the Gulf of Mexico. We would also hope to receive further
news on the exploration portfolios in the Gabon, Kurdistan and Madagascar.
Eclipse Energy has recently published a Memorandum of Information seeking
investment partners to develop its Wind Farm and Gas Fields known as the Ormonde
project offshore Barrow in Furness in the Irish Sea. The results of this are due
to be published in the next few months and at that stage we will be able to more
clearly formulate an opinion as to the increase in value of our holding, and the
plans that Eclipse Energy Board will be considering to further develop their
assets creating increased value for their shareholders.
Our last remaining holding, and indeed the very first investment made by our
late Chairman Derek Williams, Desire Petroleum Plc is at last moving towards a
drilling programme in the Falkland Island Basin and they announced in February
2008 that a Farm In agreement has been signed with a major oil company to drill
two wells. This is extremely encouraging news and has been reflected in the
increase in the Desire share price which we took advantage of and sold 300,000
ordinary shares at a price of 77.79 per share. We await further news on this
development.
It remains your Board's intention to realise value from the investment portfolio
as and when the opportunities arise, and to return capital to shareholders.
Mervyn Bradlow
Chairman
26 March 2008
CONDENSED PROFIT AND LOSS ACCOUNT
(Expressed in United Kingdom Sterling)
Six months ended Six months ended Year ended
31 December 2007 31 December 2006 30 June 2007
(unaudited) (unaudited) (audited)
£ £ £
Administrative expenses (168,381) (150,671) (436,410)
Profit on disposal of investments 289,072 - -
Interest Receivable 21,306 59,581 72,487
Net profit/(loss) on ordinary
activities before taxation 141,997 (91,090) (363,923)
Taxation - - -
Profit/(loss) for the period 141,997 (91,090) (363,923)
Basic earnings per share 1.92p (1.23)p (4.89)p
Diluted earnings per share 1.92p (1.11)p (4.89)p
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
(Expressed in United Kingdom Sterling)
Six months to Six months to Year to
31 December 2007 31 December 2006 30 June 2007
(unaudited) (unaudited) (audited)
£ £ £
Profit/(loss) retained for the period 141,997 (91,090) (363,923)
Total recognised gains and losses
relating to the period 141,997 (91,090) (363,923)
Prior period adjustment - - (143,664)
Total profit/(loss) recognised
since last annual report 141,997 (91,090) (507,587)
CONDENSED BALANCE SHEET
(Expressed in United Kingdom Sterling)
31 December 2007 30 June 2007
Note (unaudited) (audited)
£ £
FIXED ASSETS
Investments 4,882,017 5,418,141
CURRENT ASSETS
Debtors 9,159 5,824
Cash at bank 1,033,142 540,609
1,042,301 546,433
CREDITORS amounts falling due
within one year (116,597) (143,341)
NET CURRENT ASSETS 925,704 403,092
TOTAL ASSETS LESS CURRENT
LIABILITIES 5,807,721 5,821,233
SHARE CAPITAL AND RESERVES
Share Capital 1 1,443,900 1,488,000
Share Premium Account 2 550,787 679,469
Share Option Account 3 242,686 225,413
Capital Redemption Reserve 4 210,570 166,470
Profit and Loss Account 5 3,359,778 3,261,881
SHAREHOLDERS' FUNDS 5,807,721 5,821,233
Notes to the condensed balance sheet:
£
1. Share Capital -
Balance 01.07.2007 1,488,000
Purchase of 220,500 own shares of 20p (44,100)
Balance 31.12.2007 1,443,900
2. Share Premium Account -
Balance 01.07.2006 and 31.12.2007 679,469
Purchase of 220,500 own shares of 20p (128,682)
Balance 31.12.2007 550,787
3. Share Option Account -
Balance 01.07.2007 225,413
Costs attributable to period 17,272
Balance 31.12.2007 242,685
4. Capital Redemption Reserve -
Balance 01.07.2007 166,470
Purchase of 220,500 own shares of 20p 44,100
Balance 31.12.2007 210,570
5. Profit and Loss Account -
Balance 01.07.2007 3,261,881
Profit for 6 months ended 31.12.2007 141,997
Purchase of 220,500 own shares of 20p (44,100)
Balance 31.12.2007 3,359,778
CONDENSED CASH FLOW STATEMENT
Six months to Six months to Year to
31 December 2007 31 December 2006 30 June 2007
(unaudited) (unaudited) (audited)
£ £ £
Net cash (outflow)/inflow from
operating activities (Note 1) (181,188) 327,129 (326,654)
Returns on investment and
servicing of finance 21,307 59,581 36,234
Taxation - - -
Capital expenditure and
financial investment 825,195 (536,123) -
Cash inflow/(outflow) before financing 665,314 (149,413) (290,420)
Financing (172,782) (63,442) (49,193)
Increase/(decrease) in cash 492,532 (212,855) (339,613)
Reconciliation of cash flow to
movement in net funds/(debt)
Increase/(decrease) in cash 492,532 (212,855) (339,613)
Loan repayment - (500,000) -
Change in net funds/(debt) resulting
from cash flows 492,532 (712,855) (339,613)
Conversion of loan to equity investment - - (500,000)
Movement in net funds in the year 492,532 (712,855) (839,613)
Net funds brought forward 540,609 1,380,222 1,380,222
Net funds carried forward 1,033,141 667,367 540,609
Represented by:
Cash at bank 1,033,141 667,367 540,609
Net funds carried forward 1,033,141 667,367 540,609
Note to the cash flow statement:
1. Reconciliation of net operating loss to net cash flow outflow from operating
activities -
£
Administrative expenses (168,381)
Cost attributable to issue of share options 17,272
(Decrease) in prepayments and accrued income (3,335)
(Decrease) in creditors and accrued expenses (26,744)
Net cash outflow from operating activities (181,188)
This information is provided by RNS
The company news service from the London Stock Exchange
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