Westmount confident in investments as losses narrow
By Josh White
Date: Friday 24 Mar 2023
(Sharecast News) - Oil and gas investor Westmount Energy reported a cash balance of £0.86m with no debt in its interim results on Friday.
The AIM-traded company, which is pre-revenue and focussed on the Guyana-Suriname Basin, added that after the period ended on 31 December, CEC's return of capital transaction yielded an additional $0.36m in cash.
Westmount's comprehensive loss for the six months ended 31 December narrowed to £2.65m, from £7.03m in the same period a year earlier.
It said its Canje and Kaieteur joint venture partners were continuing to work towards identifying optimal targets and environmental permitting.
Drilling decisions were expected to be made from the second half of this year.
The firm said it was also pursuing sector consolidation manoeuvres, subject to certain conditions.
It proposed an "all-paper" acquisition by JHI Associates of a 100% interest in licence PL001 in the North Falkland Basin, from Argos Resources.
"Westmount's strategy remains one of seeking value creation for shareholders via exposure to high impact drilling outcomes," the board said of the company's outlook.
"Westmount is well capitalised, with a minimal cost base and investment exposure to the next round of high impact drilling opportunities offshore Guyana.
"While patience has been required, we anticipate that licence timeframes and relinquishment drivers should help to crystallise some drilling decisions from the second half of 2023."
It said its primary investee companies - CEC, JHI and EOG - remained well-funded for participation in near-term drilling opportunities offshore Guyana.
"In some cases, investee portfolio diversification may also offer exposure to additional high impact drilling events, in particular in the emerging Orange Basin, South Africa.
"Furthermore, the launch of the 2022 Guyana Licensing Round, under less benign fiscal terms, may bring renewed focus on the incumbent junior players and possible consolidation manoeuvres.
"We believe all is yet to play for."
At 1333 GMT, shares in Westmount Energy were down 3.16% at 2.3p.
Reporting by Josh White for Sharecast.com.
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