Westmount Energy Share Discussion Threads

[deswalker] 10/2/2009 08:34

Cheers Whackford,

Apologies to all. It would help if I actually bothered to read the timetable properly. Payment is this Friday as you say.

Des

[whackford] 10/2/2009 08:29

Payday is this Friday i.e. "cheques being sent out and Crest accounts credited".

I will continue to hold the rump, sure in the knowledge that WTE management will sell DES prior to drilling results being known. So, if you want to take the risk and wait for drilling results to be known, sell out of the rump and buy DES.

SEY is a complete mystery to me. However, the last WTE report did imply that a price recovery was expected. That may turn out to be misplaced hope.

[deswalker] 10/2/2009 08:16

Rod,

Curious why you think it would be this Friday ? Have you heard this from your broker and if so which one ? I'm waiting on Selftrade.

I sold my rump at 34p last week so I'm not following any more. Maybe a touch premature but at the time my NAV incl the 65p was 103p so getting 65 + 34 = 99p was close enough for me.

I was always in this for Eclipse and the NAV discount. Both came to be realised and so I sold out. The irony was that I always thought SEY was an absolute dog at 15p (the price when I bought WTE) but hoped it would hold up whilst Eclipse and the discount came good. As it turned out it didn't and so I ended up making a tiny profit after all that work :) However seeing as the market dropped very heavily over the period I still didn't lose money as I would probably have done elsewhere.

The rump may well come good. DES will clearly be the kicker. It's less easy to get excited about SEY's prospects IMO. Holding the rump is basically like holding DES + a scratch card. If DES goes up with the oil price or a rig then so will WTE etc. The scratch card is SEY - I have no idea what it's worth but it's currently valued at 10p ish per WTE share.

If I were a DES fan I'd be watching like a hawk to try and leg out of WTE and into DES at favourable levels. I have other oil stocks so DES isn't so important to me hence I sold WTE and will move on.

When estimating the NAV take note of the 3% profit share to management on the sale of DES detailed in the AR. It makes a small difference to the numbers but it may make a bigger difference as to how long management are willing to wait.

Will holders please post on here when they get the funds in their nominee account. I want to make sure Selftrade are not falling behind. Thanks.

Des

[roderick montrose smythe] 10/2/2009 07:53

No Des. I thought that it would be last Friday but it appears that it will actually be this Friday.

By the way and out of interest what do you make the rump of WTE worth now?

[deswalker] 10/2/2009 07:47

Has anyone received the cash in their nominee account yet ?

[whackford] 04/2/2009 12:59

Quite so. My spreadsheet (for 2 Feb) gives NAV at about 40p. This asumes options all exercised at the price stated in accounts, which board may not have done.

With such a whopping spread I can see little point in buying/selling unless there is a major change in either DES or SEY. Meanwhile, I look forward to receiving my divi cheque for £32k.

[roderick montrose smythe] 03/2/2009 08:38

Look at the date of the copy post whackford!

Minus 65p = 39p....WTE currently trading at 37.5p

[whackford] 03/2/2009 07:56

Not with about 7 million shares in issue.

[roderick montrose smythe] 02/2/2009 21:45

MickinVest - 29 Dec'08 - 10:10 - 1443 of 1452


Morning folk

My fair value of WTE is

500k cash
5.2m des x 27p
31.5m SEY x 2.6p

Total £2.72m

That would give fair value of £1.04.

[zingaro] 02/2/2009 12:52

Well the spread now seems to be 30 to 45 following the 65p capital payment. But I am away and do not have my spreadsheet to value these now.

[roderick montrose smythe] 30/1/2009 12:25

And now for the rump!?!?!

[roderick montrose smythe] 30/1/2009 12:20

RNS Number : 5426M
Westmount Energy Limited
30 January 2009



Westmount Energy Limited

('Westmount' or the 'Company')

30 January 2009

Result of EGM and Return of Capital

At the Extraordinary General Meeting of Westmount Energy Limited ('Westmount') held in Jersey today, the shareholders approved the proposed return of capital to shareholders.

As set out in the Circular to Shareholders dated 19 December 2008, all enabling resolutions were duly passed. Capital of the equivalent of 65 pence per Ordinary Share (in aggregate approximately GBP4,500,000) will be returned to shareholders.

The agreed return of 65 pence per B share is expected to be completed on 6 February 2009.

Commenting on the Return of Capital Mr Mervyn Bradlow, Chairman, stated:

'I am pleased that Westmount has completed another major step in its stated plans to return value to shareholders. The board will continue to monitor the Company's remaining investments to ensure they continue to be attractive to shareholders'.




Contacts:




Paul R. Anderson,

Westmount Energy Limited Tel: [phone]




Gavin J. Burnell,

Brett L. Miller,

Ruegg & Co. Limited Tel: [phone]








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

[mickinvest] 29/12/2008 11:19

Who knows Des, I justed weighted up the pro's and con's of what I think is likely to go up, WTE seem to be reliant on Desire going up and I just can't see any action at sub $60 oil. Bowleven have 31p cash (same as the share price)and just need a farm in partner for them to more than double overnight in my view.

I feel it was the right move although can see why most people would hold as WTE is still good value but that's the gamble.

Mick

[deswalker] 29/12/2008 10:52

Whilst I agree that something needs sorting out with the rump in fairly short order, I think it's only fair to point out the successes of the last couple of years (Eclipse, CDS, DES farmout, small DES and SEY sales) and point out that the management will now be much more inclined to sell DES and SEY into any spikes following the NAV hit felt from their recent falls. I am more optimistic about DES than Mick and SEY is extemely hard to value IMO (it could be worth quite a bit more or less than the current share price IMO).

But selling something currently worth about 38p for 26p seems a tad premature to me particularly if one doesn't need the cash. I may be wrong but I'm definitely holding on.

[roderick montrose smythe] 29/12/2008 10:40

OK thanks Mick....so only < 7M WTE shares will remain in play post the payout of 65p. Boy ooh boy do WTE need to sort out something soon reference the rump of the company as that is just un-economic to maintain on AIM. Surely someone would be interested in an AIM almost shell especially based out of tax efficient Jersey?

Any comments?

[mickinvest] 29/12/2008 10:31

Should be Rodrick.

500k cash, £819k SEY and £1.4m DES = total £2.719m

Shares in issue 6,980,300 = 39p

I'd say mid price 33p with a spread of 30-36p may not be far off things.

Mick

[roderick montrose smythe] 29/12/2008 10:25

On the basis of your last post Mick am I right to assume that post the 65p payout that WTE should be trading at around 35p?

[mickinvest] 29/12/2008 10:10

Morning folk

My fair value of WTE is

500k cash
5.2m des x 27p
31.5m SEY x 2.6p

Total £2.72m

That would give fair value of £1.04.

Any upside from that would be diluted by the directors share options.

Any winding up of the company will eat into the £500k cash pile so its looks like any chance of getting a good lift from 90p would require a decent bounce from DES or SEY.

At the current oil price, pigs will fly before DES drill for oil and therefore holding would be a vote of confidence that maybe SEY can get bought out.

I was in no hurry for the cash as sitting on well over 50% cash at the moment but as it is, I've stuck the equivalent of about half of the WTE sale in Bowleven today at an average of around 31.4p so that will give a benchmark on whether it was the correct decision or not to sell.

Best of luck to those holding on.

Mick

PS the paperwork is my liking for simplifying my tax return and adds an extra complication that I don't need!

[whackford] 28/12/2008 09:10

I am not selling any until fate of SEY becomes clear. If SEY were taken over for cash there would be a good case for the board issuing DES shares and all remaining cash in a wind-up. This would allow individual investors to either hold or sell the DES shares according to their risk profile.

I hope we soon get a decision on SEY, but suspect that the "approaches" will come to nothing and hence the present schedule for the return of capital.

Mickinvest - what's this talk of "paperwork"?. I don't want any of that either. No paperwork on previous return of capital.

[bisiboy] 27/12/2008 17:48

what i dont understand is why we need to continue to pay directors fees and
company costs to simply hold 2 assets with no activity the shareholdinfgs are to small to have any input into the direction investee companies are goin

[deswalker] 24/12/2008 13:13

Seems a strange choice to me Mick but I wish you well. Things are working out quite nicely with the exception of SEY, and even that ought to have reasonable upside from here. I could understand your decision if the bid was 105p say but 90-92p is a big haircut.

[mickinvest] 24/12/2008 11:35

Just thought I'd declare I've been selling out over the last week before DES or SEY rocket! The cash returned along with the leftover cash and holdings look to me to leave them fairly valued and I could do without the paperwork that goes with the cash returned.

Suppose I could have tried selling my holding in one go but would probably have got less than 90p so splitting it over many trades and getting up to 92p covered the extra dealing charges.

It never turned out the money spinner I thought it could have been but can't grumble with a small return considering what happened to SEY.

Best of luck to holders and hope SEY & DES do the business.

Mick

[bisiboy] 22/12/2008 18:45

i think that is the conclusion

[whackford] 19/12/2008 13:08

Yes, good news. Can we infer from this that the offer for Sterling Energy is unlikely to succeed?

[roderick montrose smythe] 19/12/2008 09:30

Great news!