Westmount Energy Share Discussion Threads

[mickinvest] 01/6/2007 15:52

Maybe I'm wrong Des but wouldn't the options just lapse if below the strike price as little chance they will be taken up?

That would be my reasons for ignoring them.

Mick

edit - Afterthought, suppose to justify a price over £1.035, then suppose it would be correct to include them now that I'm thinking about it!

[mickinvest] 01/6/2007 14:58

Keeping an eye on them with DES moving up.

What value you using Des?

Market Cap £6.4m

Sey 30m x 15p £4.5m
Des 5.5m x .325 £1.78m
Cash £650k
CDS 37.6m x 2p £750k
Eclipse 244,000 x £7.50 £1.8m

= £9.48m

Have I overcooked that a bit as suggests nearly 50% discount.

CDS could be a real winner and the placing next week of around £8m suggests some are confident that they will succeed.

Best of luck

Mick

[deswalker] 31/5/2007 11:50

Just topped up here whilst there appears to be a seller about.

Currently at a 10% discount even after pricing Eclipse (the supposed jewel in the crown) at zero.

28% discount when Eclipse priced at book.

??% discount when Eclipse finally floats.

Developments at SEY and CDS appear positive. DES remains the high impact sleeper.

[vraic] 01/5/2007 09:29

Story on www. Oilbarrel.com on CDS and possible farm in on leases in Paraguay

[deswalker] 27/3/2007 09:01

Thanks whackford. Not such great news but I doubt it will hold off a float on AIM for very long, particularly if they intend to start the gas side first. Obviously a decent proportion of the funds required must come from equity so it can only be a matter of time. Eclipse is currently valued at £13.3 mill which is way too cheap for their plan IMO.

Here's hoping SEY and DES get their fingers out this year and next.

[whackford] 27/3/2007 08:47

FROM NW EVENING MAIL. Not such good news, I'm afraid. But still a good medium-term bet:



Wind farm shortage
Published on 26/03/2007

THE sight of another wind farm off Walney has been put back for at least a year because the Americans have nabbed all the available wind turbines from European makers.

Ian Hatton, managing director of Eclipse Energy, which is behind the £280m, world's first, combined wind farm and natural gas field, said the project's wind farm will not be up and running seven miles off Walney until at least 2010. One reason was the queue behind the Americans for turbines from the world's main manufacturers in Denmark and Germany.

The Ormonde project consists of 30 giant wind turbines and two small marginal gas fields both of which will feed power into systems on offshore platforms which will then send electricity 40 kilometres by cable to the National Grid at Heysham.

Eclipse which has 80 private shareholders says it is confident it can raise the cash from financial institutions partly because the combination of gas and wind means Ormonde will be able to deliver consistent supplies whether the wind blows or not.

The company is looking to place contracts for the work and for the turbines in the last quarter of this year.

Mr Hatton said: "It is not possible to get even one turbine for love or money for two years because of all the investment in the US."

He said the US government is offering generous tax credits to get people there developing onshore wind farms.

He said it would be a problem getting kit before October 2010, but Eclipse was looking at the feasibility of getting the gas site running first in 2009.

Mr Hatton told a packed meeting at the Chetwynde Hotel organised by the Barrow and District Association of Engineers, that Ormonde planned to use giant five megawatt turbines towering 520ft high from sea level to blade tip.

It may also go for a pioneering method of turbine installation patented by The Engineering Business Ltd of Northumberland which assembles towers, turbines and blades on shore and carries them out to sea in a high cradle to install as one piece.

Only the foundation piles go out separately. The Engineering Business says it is a simpler cheaper way of operating instead of installing turbines in separate bits. It is talking with Eclipse.

[deswalker] 26/3/2007 15:28

Interims out.



More positive noises about Eclipse.

[bionicdog] 23/3/2007 16:09

Someone obviously thinks so.

[whackford] 23/3/2007 10:53

Agreed. Something to look forward to, I hope.

[deswalker] 23/3/2007 10:49

Bought another 5k yesterday at 91.5. Looking like a good buy right now. Most recent RNS gives clear indications that a flotation of Eclipse can't be far away.

[papillon] 20/3/2007 20:54

Probably worth buying at this price.

[zingaro] 20/3/2007 13:29

Westmount Energy Directorate Change


RNS Number:3000T
Westmount Energy Limited
20 March 2007




Westmount Energy Limited

Appointment of Director


Following the death of Westmount's Chairman Mr Derek G Williams on the 19th
January 2007, the Board is pleased to announce the appointment of Alan Levison
to the Board of Directors, and his appointment as Chairman of the Board. With
his appointment to the Board, Alan brings with him 30 years of experience in the
oil and gas industry. He holds an M.Sc. in Petroleum Geology from Imperial
College London and spent the majority of his career at Chevron Oil and British
Gas in senior management roles. In recent years, Alan has served on the Boards
of Fusion Oil & Gas Plc, Sterling Energy Plc and Eclipse Energy UK Plc, where
Westmount has held, and continues to hold in respect of the latter two
companies, significant equity interests.


Marc Yates, one of the existing Jersey based directors of Westmount said:-


"My fellow directors and I are very pleased to welcome Alan as a member of the
Board. Whilst we will miss our colleague Derek, we are fortunate in having Alan
accept the role in that not only does he have considerable experience in the
industry, but also he has an intimate knowledge in respect of Westmount's
holdings in Sterling Energy Plc and Eclipse Energy UK Plc, on whose Boards he
has served."


Alan Levison in commenting on his recent appointment said:-


"To follow my late friend Derek Williams onto the Board of Westmount Energy is
an honour and a role to which I greatly look forward. Westmount has an
interesting portfolio of investments with significant unrecognised and future
potential, particularly the low carbon energy company, Eclipse Energy UK Plc
which has recently been granted consent to construct and operate the world's
first co-development of offshore gas and wind energy in the East Irish Sea. As
the Board of Westmount, we intend to undertake a detailed review of Westmount's
strategy in relation to both existing investments as well as other opportunities
which may exist or may arise to enhance the value per share for the benefit of
shareholders."

[Abuse team] 19/2/2007 13:35

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[Abuse team] 19/2/2007 13:30

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[deswalker] 13/2/2007 11:14

Whackford,

No I won't be at Oilbarrel. After years in the City I'm now back in Yorkshire and I ain't interested enough to travel. I'm vaguely interested in Afren and Gulfsands but I'm not in oily buying mode at present. I made an exception for my tiny purchase of WTE because of the Eclipse development last week, a decent outlook for SEY and a gut-feeling about DES all at an 18% discount. But apart from that I'm well and truly in Hold mode.

Any thoughts you may have on the conference then please let the board know. Altho I'm a newbie here I doubt anyone will mind and most will probably be very interested.

Des

[deswalker] 12/2/2007 14:29

Many thks whackford. If there are only 1.765 mill Eclipse shares in issue then I'm a very happy bunny as my investment decision was based on 2.408 mill.

I looked back down this thread and saw Bomfin's £22.50 per Eclipse share although I couldn't see any reasoning for his 3x book value estimate. I'll check out the posts you suggest.

I have no clue about valuing Eclipse to be honest. Current book value is 1.766 mill times £7.50 = £13.245 mill. I find it hard to believe that an initial mkt cap would be less than £40 mill say, so Bomfin's 3x current book value would seem perfectly reasonable. But that is a pure guess and it could well be higher.

So multiplying your 23p per WTE share by three gives an extra 46p to the NAV and a very decent uplift for the share price This plus new developments at SEY (once they can get the spectre of Mauritania behind them) and, to a lesser extent, DES seems to add up to a nice energy stock at an attractive price. Any result from CDS would be the cherry on the icing on the cake with WTE now owning over 10% of the equity but I'm not exactly holding by breath on this one.

Thks again,

Des

[whackford] 12/2/2007 14:04

Des. I have the latest published ARA, to June 30 2006.

It says WTE has 244,000 shares in Eclipse (apologies for the misplaced £244,000 of my previous post), representing 13.82% of Eclipse. I am not aware of any change since that date (having looked at recent RNSs) so assume there are 244,000/.1382 = 1,765,557 approx shares in issue. Valuing WTE's holding at £7.5 per share gives £1.83m i.e. 1.83/8.1 = about 23p per WTE share using fully diluted shares in issue of about 8.1m (750,000 options outstanding at 103.5 p exercise price).

According to an article I printed from www.energy-focus.com Issue 6 2006, Ormonde requires £220m of investment. Taking this to be the case and assuming funded entirely by Eclipse Energy, what do you reckon WTE's share will be worth post-Eclipse float i.e. after dilution? It's obviously a guessing job, and I would like to know the answer.

Don't get carried away, but suggest you look at posts 723 and 1065 by Bomfin.

I reckon that's worth a pint when we meet - are you going to Oilbarrel next week?

[deswalker] 12/2/2007 10:35

Hi whackford,

Hopefully you can clarify something about the Eclipse stake. The Prelims for the year ending June 05 contain the following ...

In addition the company subscribed for 14,000 ordinary shares on 1 April 2005 at a subscription price of £7.50 per share in satisfaction of the remainder of the loan outstanding. As a result the company now holds 244,000 ordinary shares of Eclipse, representing 13.96% of the issued share capital of Eclipse at a carrying book value of £735,000, being an average cost of approximately £3 per share.

On 20 July 2005 Eclipse confirmed that it had completed a placing of new shares
at a price of £7.50 each to raise £4,950,000, before expenses.

Now there's two ways of interpreting this. One way says that 244,000 shares represents 13.96% before the 20 July placing, the other way says that 244,000 shares represents 13.96% after the 20 July placing. Do you know which one is correct ?

The former implies that aftre the placing the total number of Eclipse shares in issue is ...

244,000/0.1396 + 4,950,000/7.50 = 1.748 mill + 0.66 mill = 2.408 mill so that WTE owns 0.244/2.408 = 10.13% post 20 July placing. At £7.50 per share book value this gives a total book value for Eclipse of £18.06 mill.

The latter implies that the total number of Eclipse shares in issue is ...

244,000/0.1396 = 1.748 mill. At £7.50 per share book value this gives a total book value for Eclipse of £13.11 mill

Obviously I'm hoping the latter is correct as the uplift upon admission to AIM will be even larger but I must admit I'd only assumed the former when making my decision to invest.

Rgds,

Des

[deswalker] 12/2/2007 08:38

Just bought a small stake (3k) to get me interested. I'd never looked at this stock before until this weekend.

Newsflow from Sterling and Eclipse plus longer term developments at Desire plus Director buying was enough for me at about an 18% discount.

Even CDS may have some merit. Their disastrous year has allowed WTE to pick up a boat load of shares but the drilling and geo results so far have hardly been terrible. Clearly cash-strapped with a few credibility issues to overcome however.

Des (big swinging 3k holder)

[whackford] 10/2/2007 09:02

Papillon - I don't think so. When you look at WTE price it is tading at around 15% discount to sum of parts when Eclipse is valued at the subscription price (i.e. balance sheet asset value). I can only conclude this is a case when the significance of the news has not got thru to the "market" i.e. the few shareholders who take this company seriously.

To keep your spirits up, review the excellents posts by Bomfin and Mickinvest around April 2006. What about giving us an update Bomfin and Mickinvest? They made substantial (but not precisely quantifiable) estimates on value of Eclipse when its floated.

Remember also that the company was buying back shares at £1.20 before Eclipse planning obtained.

It's a share with only a few followers. I believe eventually value will emerge following the Eclipse float - perhaps with another special divi. Sit tight!

[whackford] 08/2/2007 14:51

Here it is, ladies and gentlemen. Great news! It's now on Eclipse Energy website.


Date: February 08, 2007 Time: 10:45

World's first wind and gas offshore energy project given green light

A unique dual energy scheme to be sited off the Cumbrian coast was given the go-ahead today by Energy Minister Lord Truscott.

The Ormonde project from Eclipse Energy will be sited 10KM from Walney Island near Barrow in Furness.

This innovative hybrid development has the potential to generate up to 200MW of electricity with almost half coming from the wind farm comprising up to 30 turbines. This is enough clean energy for around 70,000 homes.

When the wind isn't sufficient, power will still come via conventional gas sources pumped from two fields in nearby Morecambe Bay for which DTI approval has also been sought.

Energy Minister Lord Truscott said:

"We are now starting to see a real flow of approvals for energy projects in UK waters. The London Array and Thanet schemes in the Thames Estuary went through in December and the good progress continues in 2007.

"The Ormonde scheme is unusual in that it will combine wind and gas power to produce continuous electricity for the region. It is an exciting and innovative technological first that will make a contribution to our renewable energy aims."

Minister for the Marine Environment, Ben Bradshaw, said:

"This development reinforces the Government's commitment to renewable energy and combating climate change. All of the environmental issues and possible impacts on others users of the sea have been addressed in the planning and consent process."

Commenting on the licence award, Ian Hatton, Managing Director of Eclipse said,

"Eclipse is delighted to have gained consent for the world's 1st hybrid energy generation facility.

"We have combined both North Sea oil and gas experience and business models to provide a commercial catalyst to enable us to harness the energy from offshore natural gas fields and wind power, this is a global first.

"Over the next few years the UK's natural gas reserves will become depleted and we will become increasingly dependent upon imported energy. It is therefore vital that we explore the opportunities for producing energy from renewable sources and that we maximise recovery of the nation's indigenous energy.

"We believe that wind power can play a key role by producing electricity from a clean, free, abundant and inexhaustible resource. We expect Ormonde to be the first of a series of similar projects where offshore wind energy is developed using the hybrid concept."

Rob Hastings, Director of the Marine Estate at The Crown Estate said,

"The Crown Estate is delighted to have been able to work closely with the developer and the DTI to enable this important demonstration of transitional technology. The combination of hydrocarbon and renewable energy is part of the future of energy production."

The Ormonde project is scheduled for completion in 2010.

WRITTEN MINISTERIAL STATEMENT

MALCOLM WICKS MP: MINISTER OF STATE FOR SCIENCE AND INNOVATION

8 FEBRUARY 2007

GRANT OF CONSENT FOR AN ELECTRICITY GENERATING STATION OFF THE CUMBRIAN COAST

The Secretary of State for Trade and Industry has granted consents under section 36 of the Electricity Act 1989 for the construction and operation of the gas generating station and wind farm that comprise the Ormonde project.

The consents are being granted to Eclipse Energy Company Limited (EECL) and Ormonde Energy Limited (a majority owned subsidiary of EECL). This innovative hybrid project will be sited around 10km from Walney Island and has the potential to generate a total of up to 200MW of electricity, with around half coming from the wind farm.

The decision to grant the consents was taken after a thorough consideration of the possible impacts of the project on a range of environmental and other issues and interests and of the advice received from a range of stakeholders, including statutory consultees on navigation and nature conservation issues. The Secretary of State concluded that the impacts envisaged by those making representations will either be of low significance or can be mitigated or avoided by the use of suitable conditions in the Electricity Act consents or in the licence for the project that is to be issued by the Secretary of State for Environment, Food and Rural Affairs under the Food and Environment Protection Act 1985.

The Secretary of State will, in due course, announce the outcome of an application for the grant of approval for the proposed Ormonde gas field development under the separate Petroleum Act 1998 regime, relating to the extraction of gas from the sea bed. Today`s announcement does not pre-judge the outcome of that application."

Department of Trade and Industry
7th Floor
1 Victoria Street
London SW1H 0ET
Public Enquiries [phone]
Textphone [phone]
(for those with hearing impairment)

[Abuse team] 24/1/2007 15:28

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