Westmount Energy Share Discussion Threads

[cwa1] 25/2/2008 09:46

Morning Mick

As you say, fingers crossed. Eclipse announcement? That sounds about as likely as my favourite team ever winning a game of footie again. Oh, wait a mo, they did!! ;-) Would be nice to hear something about Eclipse, it's been a loooooong time....

How's things? Very good thanks. Pretty cashy for a while now apart from the usual suspects you know of already(must be the influence of Doctor Doom!).

Do you know much about Solana(SORL) that announced decent looking news this morning?

Apologies to all for the slight veer off topic but it's not as if we're the busiest of boards here :-)

Regards

[mickinvest] 25/2/2008 09:27

Morning CWA, fingers crossed for you and maybe a double with news on Eclipse in the near future. Hows things?

Mick

[cwa1] 25/2/2008 09:23

Well, FWIW, I took a punt on some more Westie this am on the back of the DES announcement but it is nothing more than that. I think it must be significant news coming from DES or they wouldn't have suspended. BUT, is it good or bad news?? Fingers crossed for some juicy farm in with available rigs or something similar/better :-) It could all end in tears though, of course...

[mickinvest] 25/2/2008 09:16

We are on the move, no doubt connected with the DES suspension which must be decent news.

Mick

[whackford] 06/2/2008 09:03

Interesting, Mr M. I find it hard (or should I say, I have not tried) to value Sterling, which is a complex company. A cash takeover of SEY would be welcome in my opinion, as a step towrds liquidating WTE. Derek Williams would seem to have been right when he sold a substantial slice of WTE's holding in SEY for about 22p/share.

I do hope the directors, who are plentiful for such a small company, intend to realise value for shareholders within a reasonable timescale.

[mr multibagger] 05/2/2008 10:12

Sterling Energy's CEO: Company 'Not Averse' to Consolidation

--------------------------------------------------------------------------------

05 February 2008 (AFX News Limited)
Print article Send to friend
Sterling Energy PLC, the AIM-listed oil and gas producer, is "not averse" to ongoing industry consolidation, said Graeme Thomson, the group's new chief executive.

Sterling, like any other AIM-quoted oil company, has been a persistent subject of takeover speculations as their mid- and large-cap peers, hard pressed to grow production and reserves, actively hunt for potential deals.

"We're not averse to consolidation," Thomson told Thomson Financial News in a phone interview, adding that interested suitors have "always been flirting" with the company.

But Sterling preferred to focus on building up its existing operations and strengthening its finances, he stressed.

"We have to make sure we're living within our means," added Thomson, the former finance director who just took on Harry Wilson's role. Wilson, the group's CEO since its listing five years ago, is now the deputy chairman. Both Wilson and Thomson are founders of the company.

Sterling refinanced all of its bank debt in December following the takeover of Whittier Energy Corp, the Nasdaq-listed oil company it bought for 145 mln usd in cash, including 43 mln usd in assumed debt, in March. It also borrowed money to partly finance the deal.

The refinancing agreement allowed Sterling to keep 154 mln usd in borrowings and 4 mln usd of undrawn facilities. The company has cash of around 14 mln usd.

The recent interest rate cuts will reduce the group's annual financing costs by around 3 mln usd, said Thomson.

Sterling's growth projects are all well funded, particularly its core US operations where capital spending for this year is expected to reach 45-50 mln usd.

The group's US production totaled 4,800 barrels of oil equivalent per day at end-2007, of which 80 pct was gas and 20 pct was liquids. Fourth-quarter volumes however averaged at around 4,200 boepd, hit by natural production declines, bad weather and delays in the delivery of equipment.

Sterling is aiming for a "modest" increase in US output this year, and is planning to cut the number of wells it is drilling in the country to around 25-30 from its previous programme of 40, added Thomson.

Its reserves in the US are currently being evaluated, though there are indications the proved and probable estimates there could reach 110 bln cubic feet of gas equivalent, about 65 pct of which are proved.

Increased US production will boost Sterling's overall output for 2008 to over 6,000 boepd, including the contribution from its projects in Mauritania, added Thomson.

Sterling pumped 5,500 boepd in the second half of 2007, up from 4,900 boepd in the first half, bringing the average for the full year to around 5,300 boepd, he said.

The company does not plan to dispose of any of its assets outside the US, which include those in Mauritania, Gabon and Madagascar, Thomson said.

Sterling is also progressing with its exploration plans for the recently acquired Sangaw North license in Iraq. It signed a production sharing contract with the regional government of Kurdistan in November.

[mr multibagger] 30/1/2008 20:24

Holding(s) in Company




RNS Number:8907M
Westmount Energy Limited
30 January 2008



TR-1(i): notification of major interests in shares

+---------------------------------------------+------------------------------+
|1. Identity of the issuer or the underlying |Westmount Energy |
|issuer of existing shares to which voting | |
|rights are attached(ii): | |
+---------------------------------------------+----------------------+-------+
|2. Reason for the notification (please tick the appropriate box or | |
|boxes) | |
+--------------------------------------------------------------------+-------+
|An acquisition or disposal of voting rights | |
+--------------------------------------------------------------------+-------+
|An acquisition or disposal of financial instruments which may result| |
|in the acquisition of shares already issued to which voting rights | |
|are attached | |
+--------------------------------------------------------------------+-------+
|An event changing the breakdown of voting rights | |
+--------------------------------------------------------------------+-------+
|Other (please specify):________________ | |
+---------------------------------------------+----------------------+-------+
|3. Full name of person(s) subject to the | Hargreave Hale Limited |
|notification obligation(iii): | |
+---------------------------------------------+------------------------------+
|4. Full name of shareholder(s) (if different | Discretionary clients |
|from 3.)(iv): | |
+---------------------------------------------+------------------------------+
|5. Date of the transaction (and date on which| 29 January 2008 |
|the threshold is crossed or reached if | |
|different)(v): | |
+---------------------------------------------+------------------------------+
|6. Date on which issuer notified: | 30 January 2008 |
+---------------------------------------------+------------------------------+
|7. Threshold(s) that is/are crossed or | 15% |
|reached: | |
+---------------------------------------------+------------------------------+
|8. Notified details: | |
+---------------------------------------------+----------------------+-------+
+---------------------------------------------+----------------------+-------+



+------------------------------------------------------------------------------------+
|A: Voting rights attached to shares |
+------------+-------------------+---------------------------------------------------+
|Class/type|Situation previous |Resulting situation after the triggering |
|of shares |to the Triggering |transaction(vii) |
| |transaction (vi) | |
|if possible +---------+---------+----------------+--------------+---------------+
|using the |Number of|Number of|Number of shares|Number of voting|% of voting |
|ISIN CODE |Shares |Voting | |rights ix |rights |
| | |Rights +------+---------+------+--------+------+--------+
| | |viii |Direct|Indirect |Direct|Indirect|Direct|Indirect|
| | | | | |x |xi | | |
+----------+---------+---------+------+-------- +------+--------+------+--------+
|Ordinary /|1,051,000|1,051,000| |1,071,000| |1,071,000| |15.0326%|
| | | | | | | | | |
|GB00B0S5KR31 | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
+----------+---------+---------+------+---------+------+--------+------+--------+

+------------------------------------------------------------------------------+
|B: Financial Instruments |
+------------------------------------------------------------------------------+
|Resulting situation after the triggering transaction xii |
+---------------+-----------+------------------+-------------------+-----------+
|Type of |Expiration |Exercise/ |Number of voting |% of voting|
|financial |date xiii |Conversion Period/|rights that may be |rights |
|instrument | |Date xiv |acquired if the | |
| | | |instrument is | |
| | | |exercised/ | |
| | | |converted. | |
+---------------+-----------+------------------+-------------------+-----------+
| | | | | |
+---------------+-----------+------------------+-------------------+-----------+

+-----------------------------------------------------------------------------+
|Total (A+B) |
+-------------------------------------+---------------------------------------+
|Number of voting rights |% of voting rights |
+-------------------------------------+---------------------------------------+
|1,071,000 |15.0326% |
+-------------------------------------+---------------------------------------+


+-----------------------------------------------------------------------------+
|9. Chain of controlled undertakings through which the voting rights and/or |
|the financial instruments are effectively held, if applicable xv: |
+-----------------------------------------------------------------------------+
|690,000 of these shares are for unit trusts operated by Marlborough Fund |
|Managers Ltd, for which Hargreave Hale manages the investments on a |
|discretionary basis. |
+-----------------------------------------------------------------------------+

+-----------------------------------------------------------------------------+
|Proxy Voting: |
+------------------------------------------------+----------------------------+
|10. Name of the proxy holder: | |
+------------------------------------------------+----------------------------+
|11. Number of voting rights proxy holder will | |
|cease to hold: | |
+------------------------------------------------+----------------------------+
|12. Date on which proxy holder will cease to | |
|hold voting rights: | |
+------------------------------------------------+----------------------------+

+--------------------------------+--------------------------------------------+
|13. Additional information: |The denominator used in calculating the |
| |percentage holding is 7,124,500 as reported |
| |by the company on 18 January 2008. |
+--------------------------------+--------------------------------------------+
|14. Contact name: |David Clueit |
| | |
| | |
+--------------------------------+--------------------------------------------+
|15. Contact telephone number: |01253 754739 |
| | |
| | |
| | |
| | |
+--------------------------------+--------------------------------------------+



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

[mr multibagger] 30/1/2008 12:35

www.bbc.co.uk

[bisiboy] 24/1/2008 20:16

how many megawatts is the field going to produce

[whackford] 18/1/2008 13:01

Des - With Desire @25p, SEY @ 11.75p, Eclipse @£7.50, my spreadsheet tells me that on a fully diluted basis (all options exercised) the NAV is about £1.08 per share.

I agree with what you say but would definitely like Desire to be retained until the drilling outcome is known.

The last thing I want is to see cash spent on further investments since it is clear that the board do not have the oil expertise that D Williams had.

[deswalker] 18/1/2008 11:00

Another 55k buyback announced.

whackford, I agree it's not easy to tell what the strategy is going forward. But what I think is clear is that they see a step change in NAV coming once Eclipse comes to market (or is sold privately ?) and are taking advantage by buying back as many shares as possible. I'm delighted by this.

It's fairly clear what the "outer" is for DES. At some point DES will announce farmout/drilling plans and the share price will rise (to say 40p ish). Then WTE either sell or hang on for the results (a year after the announcement I'd say). I hope they choose to sell.

The less clear strategy is for SEY. Personally I see some upside from the current share price (maybe 20p or so) based on the US and West Africa (particularly developments in Mauritania) but after that it's all about long term results in places like Madagascar and Kurdistan. If I were WTE management I'd be considering a sale of their SEY shares at 16-18p ish if things in Mauri look to be going well.

Just some ramblings.

[whackford] 18/1/2008 08:47

Des - thanks for reminding me about book value. We are still due from WTE a "strategy" statement, I think. As peviously stated, I would like to see either a liquidation when DES start/finish drilling, or, as you suggested, an issue to WTE shareholders of the underlying SEY and DES shares.

[deswalker] 17/1/2008 18:01

Just noticed the volume this afternoon. Hopefully more shares bought back.

[deswalker] 17/1/2008 16:49

whackford - yes it's there in the NAV at £7.50 per share with WTE owning 244,00 shares. However the current share price can be fully accounted for by Cash, SEY and DES shares so that in effect the current share price prices Eclipse at zero.

[whackford] 17/1/2008 16:35

Des - Eclipse is is in the books at the price paid. A figure of £244,000 sticks in my mind (about 4p per WTE share), but I may be wrong.

[deswalker] 17/1/2008 12:51

Absolutely. Let's hope lots more people decide to sell. I won't be one of them when there is a such a step change to NAV hidden away, as is the case here.

When Eclipse finally comes to market I think we might be in for a nice surprise. Look at the price the market gives to big infrastructure projects. Portland Gas is the latest and is currently valued at about £170 mill. Ofcourse the Ormonde Project is hardly comparable as a project but the debt profile, electricity capacity and prices paid by large utilities to get into this type of business leads me to beleive that Eclipse is worth rather more than £13 mill. It's currently in the WTE price at zero.

[bomfin] 17/1/2008 12:42

That's the way it works.

[whackford] 17/1/2008 12:41

Des - agreed. I suspect some people are selling WTE to raise cash to buy other stocks that now look cheap.

[deswalker] 17/1/2008 12:17

Excellent news. Another 40k bought back at 81p.

[whackford] 08/1/2008 12:46

One of the directors of WTE is ex Hargreaves Hale. Pity it's not WTE doing the buying - they have plenty of cash for it and they'll never get a better chance.

[cwa1] 08/1/2008 12:09

They certainly seem like keen and persistent buyers.

[deswalker] 08/1/2008 11:59

So it was Hargreave Hale picking up the 75k. They now have over 14%.

[deswalker] 04/1/2008 11:16

Fingers crossed for another buyback RNS following today's volume.

[whackford] 31/12/2007 08:57

Des, I would have thought that they could get bank support for a big loan only if they had already raised a substantial sum via equity. Would also think that most of the cash will come from equity.