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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Westmount Energy Limited | LSE:WTE | London | Ordinary Share | GB00B0S5KR31 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.40 | 1.30 | 1.50 | 1.40 | 1.40 | 1.40 | 82,782 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Offices-holdng Companies,nec | -2.7M | -2.97M | -0.0206 | -0.68 | 2.02M |
| Date | Subject | Author | Discuss |
|---|---|---|---|
| 24/9/2009 08:10 | The dispute has highlighted the continued political risks of doing business in the Kurdish area of Iraq. However, Richard Griffith, oil and gas analyst at Evolution Securities, said that it could also open up opportunities for rivals, such as Genel, of Turkey, and the UK-listed companies Heritage Oil, Gulf Keystone and Sterling Energy that are already operating in the region. "If DNO is kicked out, then other companies like Genel would be in pole position to buy their assets in the region," he said. Another oil industry source said if DNO was stripped of its Kurdish licences, they would be "eagerly contested" by other companies. DNO holds some of the best licences in the Kurdish region, including a 55 per cent stake in the Tawke field, which has been producing 50,000 barrels of oil per day since the group was awarded Iraq's first oil export licence in June. It also holds 40 per cent stakes in two other exploration blocks. Genel, which holds a 25 per cent stake in the Tawke field, is set to merge with Heritage Oil, a British company established by Tony Buckingham, a former mercenary, in a £3.4 billion deal that would create a Kurdish-focused company that would rank as one of the ten largest UK-listed oil companies. The deal is subject to a Financial Services Authority investigation, but if it proceeds, the KRG is due to hold a 17 per cent stake in the combined group, giving it a vested interest in its commercial success. Meanwhile, Sterling Energy is preparing to drill an exploration well in the Sangaw block. Iraq holds the world's thirdlargest proven oil reserves and the Kurdish region is believed to hold significant reserves that have yet to be discovered | jacob fox | |
| 23/9/2009 14:57 | Sterling has news today . look at www.offshore247.com | vraic | |
| 23/9/2009 07:39 | Issue of share options The Company today announces that it has granted, with effect from 22 September 2009, share options over a total of 150,000 20p Ordinary Shares in the capital of the Company to Mr Mervyn Bradlow, share options over a total of 50,000 20p Ordinary Shares in the capital of the Company to Mr Paul Anderson and share options over a total of 50,000 20p Ordinary Shares in the capital of the Company to Mr Peter Richardson. The share options have been granted with a subscription price of 62 pence per share which is equivalent to the average closing middle market quoted price for the Company's 20p Ordinary Shares for the 30 trading days up to and inclusive of 22 September 2009. The options expire on 31 December 2016 and any shares obtained through their exercise cannot be sold before 22 September 2012 unless in specified circumstances. Issued at a price about 1/3 BELOW the current mid price. Nice work if you can get it, eh? They'll REALLY have to work to get some values from these...... | cwa1 | |
| 22/9/2009 09:55 | Apologies CWA1 | jacob fox | |
| 22/9/2009 09:50 | AGM 28 October. | vraic | |
| 22/9/2009 09:30 | Hi JF Might it be best just to post a link to results? Bit messy and I nearly wore my scroll button out getting to end of the post..... :-) | cwa1 | |
| 22/9/2009 08:33 | RNS Number : 4211Z Westmount Energy Limited 22 September 2009 Westmount Energy Limited ('Westmount' or the 'Company') Final Results and Notice of Annual General Meeting The Company is pleased to announce its Final Results. A copy of the results will be made available on the Company's website and will be posted to shareholders by the 25th September 2009. Notice is hereby given that the Annual General Meeting of Westmount Energy Limited will be held at Whiteley Chambers, Don Street, St. Helier, Jersey, JE4 9WG Channel Islands on Wednesday, 28 October 2009 at 11.45 am CHAIRMAN'S REVIEW The past twelve months have been a period of extreme volatility in the Financial Markets and notably in the oil industry in which our company's two remaining investments are based. The oil price has fluctuated from a high of US$147 a barrel to a low of US$32 per barrel and at the time of writing appears to have settled in the US$70 a barrel range. When I became Chairman some eighteen months ago the company had three investments quoted on the Alternative Investment Market (AIM) of the London Stock Exchange and a further investment in unquoted Eclipse Energy Plc (Eclipse). During this period we sold our holding in CDS Oil and Gas Plc for a net profit of £289,072 and in November of 2008 we accepted an offer from Vattenfall AB (publ) of £18.01 per share for our holding in Eclipse which produced a substantial profit of £3,659,440. As a result of these two transactions we were able to return to shareholders 65p per share by way of a return of capital. The payment in February this year together with the earlier payment of 50p per share in 2006 has allowed the company to repay the shareholders a total of 115p per share. When our late founding Chairman Derek Williams floated the company in 1995 the shares were placed at 15p per share. My fellow directors and I only wish Derek was alive to see his plans fulfilled. Notwithstanding the volatility in the markets I am very pleased to report that our two remaining investments in Desire Petroleum Plc and Sterling Energy Plc have performed well. 1. Desire Petroleum Plc (Desire) On 10 September 2009 Desire announced that they had exchanged letters of intent with Diamond Offshore Drilling (UK) Ltd for a rig to undertake a minimum four well drilling campaign in the North Falkland Basin. The rig is due to arrive in Falkland waters in February 2010. In addition Desire has options to drill a further four wells for itself or its partners. Exercising this option may require further fund raising in the future. Desire's share price has responded to this news and is currently trading at 90.75p per share as compared to 31 December 2008 middle market price of 26.75p per share. The company currently holds 4,100,000 shares in Desire and the market liquidity in the shares has improved considerably. In August this year the Falkland Island Council granted the necessary environmental consents for the proposed drilling programme. 2. Sterling Energy Plc (Sterling) This was the investment that gave your Board the greatest concern as the share price had weakened considerably as Sterling struggled to refinance its bank loans and there seemed to be no end to the bid negotiations announced in the third quarter of 2007. It was with a great sense of relief that in August this year it was announced that negotiation has been successfully concluded for a fund raising of approximately US$100m with a new shareholder, Waterford Finance and Investment Ltd, subscribing for US$46m of the fund raising representing a 29.9% interest in Sterling. It has been widely reported that the new shareholder has been extremely successful in the oil industry having recently accepted an offer for their holding in Emerald Energy Plc which valued that company at over £500m. Their management is very highly regarded in the City and are now strongly represented on the Board of Sterling. We were offered a participation in the remaining Institutional fund raising and your Board decided to participate. Through the good office of Graeme Thompson, Sterling's CEO, we were allocated 42,446,789 new shares at a placing price of 1.3p per share. At the time of the placing it was also announced that there would be a further opportunity for existing shareholders to subscribe for two new shares for every nine held at 1.3p per share. The actions of your Board in respect of the first subscription shall result in the company being eligible to subscribe for approximately 16 million additional new shares. The company currently holds 63,946,786 shares in Sterling and following the second subscription shall hold in the region of 80 million shares, which at their current share price of 3.80p per share represents a value of around £3m. It is worth noting that following the fund raising your company will not have a disclosable interest in Sterling and with the daily turnover being substantial, and averaging 31 million shares in the last month, it is an extremely liquid market. We are obviously very delighted with our decision to increase our exposure in Sterling and I would suggest that any shareholder wishing to view Sterling's revised situation should log on to Sterling's web site which is very explanatory. Nominated Advisors During this period we appointed Cenkos Securities Plc as our Nominated Advisors and would like to thank Ruegg & Co, our previous advisors, for their efforts over the past years. Future Prospects As stated in my previous review the interest of shareholders is of major importance to your Board. Our policy of harvesting our cash resources and only making strategic investments when the opportunity arises has been rewarded. We will continue to consider any transaction that we deem to be in the best interests of the shareholders and at the same time we will always consider our policy of returning surplus funds arising on sales of our investments to shareholders. In addition your Board will continue to maintain its emphasis on controlling our costs. We look forward to the future developments of our two remaining investments and in particular to the long awaited exploration of the Falkland Basin in the first Quarter of 2010. Finally at the time of writing this review the net asset value (NAV) of the company fully diluted for share options is 93p per share. The NAV per share is calculated prior to the subscription for approximately 16 million additional new shares in Sterling at a price of 1.3p per share. MERVYN BRADLOW Chairman 21 September 2009 PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2009 (Expressed in United Kingdom Sterling) Note 2009 2008 £ £ £ £ Administrative expenses (374,827) (346,267) Operating (loss) (374,827) (346,267) Profit on disposal of investments 7 3,874,768 507,325 Impairment of investment 7 (2,125,250) - Interest receivable 49,035 45,352 1,798,553 552,677 Net profit on ordinary activities before taxation 3 1,423,726 206,410 Taxation - - Profit for the financial year 1,423,726 206,410 Basic earnings per share 6 20.34p 2.85p Diluted earnings per share 6 19.91p 2.85p There are no recognised gains or losses other than as disclosed above There were no acquisitions or discontinued operations during the current or preceding year. BALANCE SHEET AT 30 JUNE 2009 (Expressed in United Kingdom Sterling) Note 2009 2008 £ £ £ £ FIXED ASSETS Investments 7 1,830,287 4,728,998 CURRENT ASSETS Prepayments and accrued income 10,540 7,689 Cash at bank 873,656 1,118,597 884,196 1,126,286 CREDITORS: amounts falling due within one year 8 (172,377) (131,730) NET CURRENT ASSETS 711,819 994,556 TOTAL ASSETS LESS CURRENT LIABILITIES 2,542,106 5,723,554 SHARE CAPITAL AND RESERVES Share capital 9 1,396,060 1,403,060 Share premium account 10 261,682 416,317 Capital redemption reserve 10 - 251,410 Share option account 10 244,363 269,416 Profit and loss account 10 640,001 3,383,351 SHAREHOLDERS' FUNDS 11 2,542,106 5,723,554 These financial statements were approved and authorised for issue by the board of directors on 21 September 2009 and were signed on its behalf by: P J RICHARDSON Director CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2009 (Expressed in United Kingdom Sterling) Note 2009 2008 £ £ Net cash (outflow) from operating activities A (313,179) (315,740) Returns on investments and servicing of finance B 49,035 45,352 Capital expenditure and financial investment C 4,648,229 1,196,468 Cash inflow before financing 4,384,085 926,080 Financing D (4,629,026) (348,092) (Decrease)/increase in cash (244,941) 577,988 Reconciliation of cash flow to movement in net funds/(debt) (Decrease)/increase in cash (244,941) 577,988 Movement in net funds in the year (244,941) 577,988 Net funds brought forward 1,118,597 540,609 Net funds carried forward E 873,656 1,118,597 Represented by: Cash at bank 873,656 1,118,597 Net funds carried forward 873,656 1,118,597 A. RECONCILIATION OF NET OPERATING LOSS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES 2009 £ 2008 £ Administrative expenses (374,827) (346,267) Cost attributable to issue of share options 23,852 44,003 (Increase) in prepayments and accrued income (2,851) (1,865) Increase/(decrease) in creditors and accrued expenses 40,647 (11,611) Net cash outflow from operating activities (313,179) (315,740) B. RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 2009 £ 2008 £ Interest received 49,035 45,352 Net cash inflow from returns on investments and servicing of finance 49,035 45,352 C. CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT 2009 £ 2008 £ Purchase of fixed asset investments (note 7) (50,250) - Sale of fixed asset investments (note 7) 4,698,479 1,196,468 Net cash inflow from capital expenditure and financial investment 4,648,229 1,196,468 D. FINANCING 2009 2008 £ £ Purchase of ordinary shares (31,668) (348,092) Redemption of B shares (note 9) (4,597,358) - Net cash outflow from financing (4,629,026) (348,092) E. ANALYSIS OF NET FUNDS 30 June 1 July 2009 Cash flow Non cash 2008 £ £ £ £ Net funds Cash at bank 873,656 (244,941) - 1,118,597 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 1. ACCOUNTING POLICIES a) Accounting convention The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards in the United Kingdom. b) Foreign currency Transactions denominated in foreign currencies are translated to United Kingdom Sterling at the rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into United Kingdom Sterling at the rate prevailing at the balance sheet date. Exchange gains and losses are taken to administrative expenses in the profit and loss account. c) Investments Fixed asset investments are stated at cost and are subject to review for impairment. Any impairment is recognised in the profit and loss account in the year in which it occurs. Profits or losses realised on the disposal of individual fixed asset investments are calculated on an average cost basis. d) Financial instruments Financial assets and liabilities are initially recognised on the historical cost basis, which approximate to fair value. The company recognises a financial asset or financial liability in the balance sheet when it becomes a party to the contractual provisions of the instrument. Income and expenses associated with financial instruments are taken to the profit and loss account on an accruals basis. Impairment of financial assets is recognised in the profit and loss account in the year in which it occurs. e) Share options Awards of share options are recorded under Financial Reporting Standard 20: Share-based Payment. The cost of the share options are ascribed a fair value at grant date and accounted for as an administration cost of the company with an equal Share Option Reserve being created in Shareholders' Funds. The cost is recognised in the profit and loss account over the vesting period of the award. f) Capital redemption The nominal amount and the premium paid upon any redemption of shares is charged to Profit and Loss Reserves. Companies (Amendment No.9) Jersey Law 2008 became effective in January 2008 allowing companies to repurchase their capital from any existing reserves without creating a capital redemption reserve account. The company has decided to use this amendment to the law and as such it has changed its accounting treatment regarding capital redemptions such that a capital redemption reserve will no longer be used. 2. TOTAL ASSETS LESS CURRENT LIABILITIES: SEGMENTAL INFORMATION By geographical area 2009 2008 £ £ Total assets less current liabilities South Atlantic 570,287 658,998 North American and African regions 1,260,000 3,335,000 European regions - 735,000 Segment net assets 1,830,287 4,728,998 Unallocated net assets 711,819 994,556 2,542,106 5,723,554 Segmental information is reported under Statement of Accounting Practice 25: Segmental reporting. Since there is only one class of business, reporting is provided by geographical area only. 3. NET PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 2009 2008 £ £ Net profit on ordinary activities before taxation is stated after charging: Directors' emoluments 114,352 173,369 Compensation for loss of office - 24,486 Auditors' remuneration 17,454 16,000 4. REMUNERATION OF DIRECTORS AND RELATED PARTIES 2009 2008 Salary/ fees Salary/ Fees £ £ Executive directors 55,000 137,821 Non-executive director 59,351 35,548 114,352 173,369 Directors' remuneration includes the cost of any share options granted to directors. In 2008, 250,000 share options were granted to directors at a weighted average fair value of 16.47p. There have been no share options granted to directors during the current year. During the year, legal and professional fees totalling £15,158 (2008: £1,641) were paid to Ogier, a firm in which M S D Yates is a partner, in respect of services charged on an arms length basis as the company's legal advisors. Company secretary fees of £42,785 (2008: £37,598) were paid to Bedell Secretaries Limited, a firm in which Mr Anderson is a senior manager. At the balance sheet date the company owed £1,250 to directors in respect of commissions on the sale of shares in Sterling Energy Plc and £2,171 to Ogier in respect of legal and professional fees. The company does not employ any staff except for its board of directors. The company does not contribute to the pensions or any other long-term incentive schemes on behalf of its directors. 5. TAXATION With effect from 1 January 2009 a new system of taxation was introduced in Jersey which is referred to as Zero Ten. Under Zero Ten rules the company is taxed at 0% based on the net profit for the year as adjusted for non-allowable expenses and capital allowances. Jersey resident shareholders are liable to Jersey income tax on distributions of trading companies paid out of profits of accounting periods ending after 1 January 2009. The company is registered as an International Services Entity under the Goods and Services Tax (Jersey) Law 2007 and a fee of £100 has been paid. As no relationship exists between the tax and the level of the company's activities, the tax has been included in the administrative expenses. 6. EARNINGS PER SHARE The calculation of basic earnings per ordinary share is based on the profit for the year after taxation of £1,423,726 (2008: £206,410). The weighted average number of shares in issue during the year was 6,983,273 (2008: 7,246,858). As explained in note 9 there are share options in issue over the company's ordinary shares. Since the exercise price of some of these options at 30 June 2009 was below the average market price of the ordinary shares during the year, they are deemed to have a dilution effect on earnings per share and diluted earnings per share are consequently disclosed separately. 7. INVESTMENTS 2009 2008 £ £ Fixed asset investments Desire Petroleum plc ('Desire') 4,500,000 ordinary, fully paid shares at cost (2008: 5,200,000) (a) 570,287 658,998 Eclipse Energy UK plc ('Eclipse') Nil ordinary, fully paid shares at cost (2008: 244,000) (b) - 735,000 Sterling Energy plc ('Sterling') 31,500,000 ordinary, fully paid shares at cost (2008: 29,000,000) (c) 3,385,250 3,335,000 Less: Impairment (2,125,250) - Net carrying value of Sterling shares 1,260,000 3.335,000 1,830,287 4,728,998 (a) On 30 June 2009 the market value of the company's holding of 4,500,000 ordinary fully paid shares in Desire, representing 1.96% of the issued share capital of the company, was £2,025,000 (45.00p per share, 2008: 91.75p per share). During the year, the company disposed of 700,000 ordinary shares in Desire, realising a profit of £215,328 (after expenses). (b) On 19 November 2008 the company disposed of all of its holding of 244,000 ordinary shares in Eclipse Energy UK plc, realising a profit of £3,659,440 (after expenses). (c) On 30 June 2009 the market value of the company's holding of 31,500,000 ordinary fully paid shares representing 1.35% of the issued share capital of Sterling was £699,300 (2.22p per share, 2008 11.25p per share). On 1 October 2008 the company purchased 2,500,000 ordinary shares in Sterling at a cost of 2p per share. In the opinion of the directors, the company's investment in Sterling suffered a permanent diminution in value to an amount of less than cost. The carrying value of this investment has been written down to the directors' estimated recoverable value of 4p per share (2008: 11p per share), at a cost of impairment of £2,125,250. 8. CREDITORS: amounts 2009 2008 falling due within one year £ £ Amounts due to shareholders 127,292 93,892 Accrued expenses 45,085 37,838 172,377 131,730 9. SHARE CAPITAL 2009 2008 £ £ Authorised: 10,000,000 ordinary shares of 20p each 2,000,000 2,000,000 15,100,000 redeemable 'B' shares of 1p each 151,000 151,000 Allotted, called up and fully-paid: 2009 No. 2008 No. 2009 £ 2008 £ In issue: Ordinary shares 6,980,300 7,015,300 1,396,060 1,403,060 'B' shares - - - - No. £ Ordinary shares Ordinary shares Movement Balance at 1 July 2008 7,015,300 1,403,060 Purchase of own shares (35,000) (7,000) Balance at 30 June 2009 6,980,300 1,396,060 'B' shares 'B' shares Issued, fully paid on 30 January 2009 6,980,300 69,803 Redeemed and cancelled on 6 February 2009 (6,980,300) (69,803) Balance at 30 June 2009 - - On 30 January 2009, following the sale of the company's shares in Eclipse Energy plc, the company issued 6,980,300 fully paid redeemable 'B' shares of 1p each ranking parri passu with existing shareholdings to enable the return of capital to shareholders of the company equivalent to 65p per ordinary share (£4,597,358 in aggregate). These 'B' shares were redeemed on 6 February 2009. As at 30 June 2009, options were outstanding over 640,000 (2008: 850,000) ordinary 20p shares, with a weighted average exercise price of 32.87p (2008: 102.8p). The options are exercisable at the election of the option holder, over various periods expiring 31 December 2012. During the year, 150,000 options lapsed (2008: Nil) held by former director A Levison on 12 September 2008. Of the 150,000 options held by former nominated advisor Ruegg & Co Limited, 60,000 options are deemed to have lapsed as at 30 June 2009 for accounting and valuation purposes as these could only be exercised upon a change of control of the company prior to 20 September 2009. The remaining 90,000 options were not exercised and therefore lapsed on 20 September 2009. As at 30 June 2009 480,000 (2008: 510,000) of the options were exercisable at a weighted average exercise price (adjusted to reflect the return of capital to shareholders) of 38.5p (2008: 103.5p) and 100,000 of the options were exercisable at a weighted average exercise price (adjusted) of 26p (2008: 91p). The weighted average vesting date of the 60,000 options issued, currently not vested, is 22 June 2010. The share options are ascribed a total expense for the year ended 30 June 2009 of £23,852 (2008: £44,003). The options were repriced by a deduction of 65pence from the original grant price to take into account the return of capital made to shareholders by the issue and redemption of B shares made during the financial year. The deduction of 65 pence accorded with the advice received by the Board from Ruegg & Co Limited. No share options were granted during the year (2008: 250,000). The fair values of previously granted options were calculated using the Black Scholes valuation model. At each date of grant the volatility of the company was estimated as the standard deviations of daily historical continuously compounded returns over a period commensurate with the expected life of the option, back from the date of grant, and annualised by the factor of square root 252, assuming 252 trading days per year. The risk-free rate is the yield to maturity on the date of grant of a UK Gilt Strip, with term to maturity equal to the life of the option. The expected life of the options is estimated as the mid-point between the date of grant and the date of expiry of the option. 10. SHARE PREMIUM ACCOUNT AND RESERVES Share Premium Account Capital Redemption Reserve Share Option Account Profit & Loss Account £ £ £ 1 July 2008 416,317, 251,410 269,416 3,383,351 Issue of B shares (69,803) - - Redemption of B shares - - - (4,467,391) Redemption costs (60,164) - - Cost of share options - - 23,852 - Lapse of share options - - (48,905) 48,905 Purchase of own shares (24,668) - - Transfer to profit and loss (251,410) 251,410 Profit for the year - - - 1,423,726 Balance at 30 June 2009 261,682 - 244,363 640,001 11. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS 2009 £ 2008 £ Profit for the year 1,423,726 206,410 Cost of share options 23,852 44,003 Purchase of own shares (31,668) (348,092) Return of share capital (4,597,358) - Opening shareholders' funds 5,723,554 5,821,233 Closing shareholders' funds 2,542,106 5,723,554 12. CONTROLLING PARTY In the opinion of the directors the company does not have a controlling party. 13. POST BALANCE SHEET EVENTS Desire Subsequent to the year end the company has disposed of an additional 400,000 ordinary shares in Desire realising proceeds of £230,626 and a profit of £179,934 (after expenses). At the current market value of 90.75p per share the carrying value of this investment is £3,720,750. Sterling Subsequent to the year end, and as announced by the company on 17 August 2009, a further 42,446,786 new ordinary shares in Sterling were subscribed for as part of the Placing at a placing price of 1.3p per share. In addition the company has disposed of 10,000,000 ordinary shares realising proceeds of £385,699 (after expenses). At the current market value of 3.80p per share the carrying value of this investment is £2,429,978. This information is provided by RNS The company news service from the London Stock Exchange | jacob fox | |
| 19/9/2009 16:01 | Thanks for that JF | cwa1 | |
| 19/9/2009 15:50 | Kevin Goldstein-Jackson: My Portfolio Published: September 18 2009 19:00 | Last updated: September 18 2009 19:00 On September 10, I was overwhelmed with Desire. The reason for my warm glow was that the share price of small, Aim-listed Desire Petroleum rocketed 25.5p to 90p on the company's announcement that it had "exchanged a letter of intent" with Diamond Offshore Drilling (UK) for the Ocean Guardian drilling rig to undertake "a four well minimum drilling campaign in the North Falkland Basin" with work expected to start in "early February 2010". Desire has options to drill a "further four wells for itself and/or its partners" and the company believes it should "endeavour to drill as many wells as possible to test the full potential of this highly prospective area". The company is investigating the best course of action to raise additional funds and it is intended that Desire's shareholders will have an opportunity to participate in the fundraising. Although I do not actually own any shares in Desire, I should still benefit financially from such exploration activities. The Desire announcement saw the share price of Aim-listed Falkland Oil and Gas (FOG) rise 18p to 126p on September 10 in expectation that if Desire eventually strikes significant oil reserves, then FOG might do so too perhaps hiring the same oil rig. Falkland Islands Holdings (FIH), in which my self- invested personal pension (Sipp) has a shareholding, saw its shares jump 50p to 310p. FIH, as well as owning the UK-based Ports- mouth Harbour Ferry Company and the fine art and logistics company Momart, also has considerable interests in the Falkland Islands ranging from shops and a fishing agency to property. It seems likely the Falklands interests would benefit from an influx of oil workers and drilling activity. At FIH's annual meeting on September 10, David Hudd, the company's chairman, confirmed that FIH continued to hold 15m shares in FOG. Shares in Westmount Energy, the tiny oil investor in which my Sipp also has a holding, rose 15p to 72.5p on Desire's announcement. In March, Westmount reported its interim results for the six months ended December 31 and at that time Westmount held 5.2m shares in Desire. In the interim report, Mervyn Bradlow, company chairman, also commented on the company's holding of 31.5m shares in Sterling Energy, stating it had been "a very disappointing investment over the last year or so" and "in view of the historic carrying value", the board had decided to "make a provision of £2.13m to reflect a reduction which is more aligned to the current value". Sterling's shares had been badly affected by the fall in the oil price, reduced production in Mauritania and lower gas prices in the US. Earlier this year, Sterling's share price fell to less than 1p on concerns about its debt levels and future prospects yet it had oil and gas interests in the Gulf of Mexico, Africa and the Middle East and what it described as a "recent world-class multi-billion barrel discovery in Kurdistan". Fortunately, Sterling attracted new financial backers and directors and on August 14 announced a placing of new shares to raise £62.5m and board changes that saw Alastair Beardsall join the board as executive chairman and Keith Henry as a non-executive director. Both have considerable oil industry experience. Beardsall had been executive chairman of Emerald Energy during which time Emerald had grown from a market capitalisation of less than £8m to be worth £532m. On August 17, Westmount announced that it had subscribed for 42.45m new ordinary shares in Sterling at the placing price of 1.3p per share. Sterling's shares are now more than double that price. Kevin Goldstein-Jackson is an active private investor writing about his own investments. He may have a financial interest in any of the companies, securities and trading strategies mentioned. The Financial Times www.ft.com | jacob fox | |
| 18/9/2009 10:35 | What a spread, My broker would jump for joy if I bought this. If only because they would deal at the top, ie, 90p! | rayrac | |
| 17/9/2009 15:01 | Been out of the UK for while and nice to see it move up on news of DES. I think WTE will be an interesting play for the next 12 months with probable drills for DES and SEY. GLTA. | jamesiebabie | |
| 10/9/2009 10:12 | This share just keeps on giving doesn't it. | bionicdog | |
| 01/9/2009 12:43 | Rayrac - WTe is only for those who want to buy and hold - probably for many years; small volumes mean large a spread, so it's not a trading stock. I've been a holder of WTE for about 12 years and it owes me nothing. | whackford | |
| 29/8/2009 12:27 | got out of these earlier in the week been waiting for the right opportunity since eclipse exit. sterling energy look fully valued and as for desire i can never see this coming to anything. | bisiboy | |
| 24/8/2009 14:30 | That's some spread I'm seeing, or is it a mistake? I don't hold the shares, but I have in the past. It always seems to trade at a discount so I got rather fed up with holding. :( | rayrac | |
| 21/8/2009 10:31 | Hmmmmm. We seem to be ticking along again. | cwa1 | |
| 17/8/2009 11:49 | Mick - as you say,cash must indeed be tight assuming options not exercised and DES still at 5.2 I have no reason to think there are any imminent "plans" for the company. After speaking with one of the directors quite some time ago, I understood WTE would still exist at least until the DES situation came to a conclusion. However, I have always thought that the spectrum of WTE holders must involve those with varying risk profiles - some who would like to see DES unsold until drilling finished, and those who would like to see all DES sold prior to drilling.So paying out the shares - if that's possible - would enable everybody to be satisfied. Accounts still some time away, I guess, so we may not get any further indication until then. Obviously I'm pleased to see that WTE still thinks there's life in SEY. | whackford | |
| 17/8/2009 10:46 | Can't buy on line! | whe4to | |
| 17/8/2009 10:11 | Just seen your figures whackford and the 78p was bang on with my quick calculations on SEY & DES. Certainly does make things tight on the cash holding unless they are thinking of unloading DES or have other ideas for the company? Mick | mickinvest | |
| 17/8/2009 09:19 | I have just updated my spreadsheet for today's RNS. In answer to your questions, I now have on a fully diluted basis: 0.691 DES per WTE share. 9.820 SEY per WTE share. Guess about 2p cash per WTE share. In fact my current cash estimate is slightly negative,so I'm surprised WTE can subscribe for as many of the new SEY shares that they have. I reckon all that adds up to about 78p for calculated value of all assets. Therefore, current mid-price of 54p is maximum that is justified bearing in mind illiquidity of WTE. | whackford | |
| 17/8/2009 08:47 | On fire now :-) | cwa1 | |
| 17/8/2009 08:37 | Spread narrowing to ridiculous levels now :-) | cwa1 | |
| 17/8/2009 08:15 | Potential nice little earner at these prices | cwa1 | |
| 17/8/2009 07:20 | Nice buy on SEY at that placing price. I like it. Whackford - what are your prices and what figures are you using fully diluted? TIA | jamesiebabie | |
| 16/8/2009 09:27 | So whackford what is your calculation on a fully diluted basis of NAV using Fridays closing prices? | debbie shields |
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