Westmount Energy Share Discussion Threads

[cwa1] 07/12/2005 08:08

The redeemable b shares are the ones to be issued to shareholders that can be redeemed for cash(50p) immediately(31/1/06)-there is also a later redemoption date(I assume for tax reasons) They are not going to be listed on any market, So, effectively, they are "cash", yes.

[bomfin] 06/12/2005 23:06

Thanks CWA1,

I'll phone TDW in the morning to see what they've got.

Are the redeemable 'b' shares the cash?

[cwa1] 06/12/2005 22:34

Hi B

From my recent communication(Squaregain amongst other broker holdings)...

Dates: 22 Dec 05 Record date for share consolidation and issue of redeemable `b` shares. 23 Dec 05 Dealings expected to commence in the new ordinary shares of 20p (8.00am). 23 Dec 05 Issue of redeemable b shares. NOTE: Shareholders who sell their holdings prior to 22 December 2005 will not be eligible to partake in this corporate action and will not receive the B shares. Further information will be sent to you in due course.

[bomfin] 06/12/2005 19:04

wormcather,

Where did you get that?

My broker's meant to tell me when anything comes through and they havn't said anything yet.

[wormcatcher] 06/12/2005 18:59

p@
22 Dec I think

[bomfin] 06/12/2005 16:09

Also added today CWA1

[p@] 06/12/2005 15:45

When does this go ex-return of 50p capital?

[cwa1] 06/12/2005 10:31

Och. This is silly IMHO. I'll have a few more:-/ Buying at below mid at moment, so all showing as sells...

[bomfin] 02/12/2005 09:19

That's a tough choice:-)

Tax reasons?

[bionicdog] 01/12/2005 14:21

Got en e-mail today asking if I want the money on the 1st of January or the 1st of May ........ errrrrr.

[bomfin] 01/12/2005 13:41

Added today.

Can't understand the weakness.

Excellent time for Eclipse to float this winter with natural gas and electricity prices at record highs. imho dyor

rgds bomfin

[bomfin] 25/11/2005 18:04

They're not making Eclipse's turbines.

Check out the figures P@

Eclipse website says 220 megawatt development. Life of development over 25 years. Current wholesale electricity prices £50/ megawatt hour.

My calculations based on only 65% production (i.e. 143 megawatts) for a development of 20 years life are. £40 x 24(hours in day) x 143(number of megawatts) x 365 days in year x 20 years = just over £1 billion of revenues.

If you take maximum capacity and use 25 years and use current wholesale price of £50/megawatt hour you get. = £2.4 billion potential revenues.

Power companies wanting to secure supply might be prepared to buy as if wholesale prices stay at £50/megawatt hour to guard against the possibility of them increasing.

What is the value of this project to a Centrica, Scottish Power or E.ON?

IMHO DYOR

rgds bomfin

[p@] 25/11/2005 17:36

Heard this morning on Bloomberg that the shares of Vestas (largest wind farms manufacturing Co.) were down another 10% on a profits warning.

[bomfin] 25/11/2005 15:04

What's that about.

Eclipse have 11.25 million boe of gas. so not dependant on the wind farm going ahead. imho dyor

rgds bomfin

[p@] 25/11/2005 14:51

Bom do you think the Vestas Wind farm profit warning will have an effect on the
Eclipse value?

[bomfin] 25/11/2005 12:06

Hi CWA1,

I've been buying over the last couple of weeks and will add. The risk seems so small and the potential appears so big.

Basically at current share price we'll get our 50p/share cash back and then have half the number of shares at the same price. The market cap will be about £7.5 million. I'm sure you've worked that bit out already btw.

It's Eclipse which seems to be totally underestimated and may have given DW the idea to sell Buchan royalty and 40 million Sterling shares and return the cash to share holders.

It makes the upside potential on share price of Eclipse far greater and I believe it is very substantial. I find it hard to believe the big power companies won't be interested in this project. It appears to push all the right buttons.

Also after the cash return and 1 share for 2 held deals are through it only has to get to market cap of £22.5 million to be a 3 bagger.

IMHO DYOR

rgds bomfin

[cwa1] 25/11/2005 11:31

Hi Bomfin

Thanks for that. I've been doing as few sums myself and every time I do them I come up thinking that they look very cheap. The potential of Eclipse seems very overlooked to me within the stable of companies that WTE has. Obviously given that I have a large holding, I would say that though!

The company looks to be "worth" a £1 per share POST the cashback and reorganisation WITHOUT taking in to account the Eclipse value, whatever that is. IMHO, your three bagger comment is not just pie in the sky, it could be very real given time.

If you don't mind me asking, are you a holder currently?

[whackford] 25/11/2005 09:51

With Desire at 24p, Sterling at 16p and residual cash (after the 50p divi)of £1.5m, I see a consolidated Westmount share being good value at about 100p.

The large dividend suggests DW can see no attractive new opportunities at the moment. It is also consistent with the eventual winding up of Westmount at any time after Eclipse has floated. Anyone know when Eclipse is due to float?

Rgds.
Whackford

[bomfin] 25/11/2005 09:37

So once the return of cash is done and we're issued 1 share for every 2 that we have there will be approximately 7.5 million shares in issue.

What will be left for those 7.5 million shares.

Hopefully at least £1 million in cash.

30 million Sterling Energy shares currently worth nearly £5 million.

5.5 million Desires share currently worth approximately £1.4 million and

244,000 Eclipse energy shares.

This is the key. What are 244,000 Eclipse Energy shares worth?

WTE's last report suggested they owned 1/7th of Eclipse.

Eclipse own 2 small gas fields with reserves of 11.25 million boe in natural gas.

Currently 2008 forward prices are nearly £25/boe natural gas.

Without the windfarm this gas has a potential value of about £100 million.

If some how WTE were to realise this value and they do indeed own 1/7th of Eclipse then potentially they have an asset worth £14 million which would make WTE at a market cap after the return of cash of £7.5 million look like a potential 3 bagger. IMHO DYOR

On the other hand Eclipse ( Video from Channel 4 news on their website about the windfarm/gas electricity producing project ) are intending to use this gas along with a wind farm to produce electricity.


The project development costs are said to be about £235 million.

By my calculations the potential revenues over the first 20 years of the project(the gas should last 8 years and produce roughly half the elecricity during those 8 years whilst the wind turbines are increased in number) is £1 billion.

Electricity wholesale prices are being pushed up and may even go higher than this.



What is a potential float price for Eclipse Energy?

All IMHO DYOR

rgds bomfin

[bomfin] 24/11/2005 05:47

Watch this one closely.

Cash gets returned to shareholders. Price stays about the same! because of consolidation. Doesn't look cheap all of a sudden which may have attracted attention!?

Market cap is halved though so any good news from Eclipse has a bigger effect on the share price. Eclipse are looking for a listing soon. Float price could be very significant to a market cap reduced WTE.

All IMHO DYOR

rgds bomfin

[lostcause] 23/11/2005 22:46

The share consolidation seems strange given the small number of shares in issue.

[cwa1] 10/11/2005 14:32

Interesting to see 10,000 going thro' at 112p.