LONDON (ShareCast) - (Sharecast News) - Westmount Energy reported an operating profit of £2.01m for the year ended 30 June on Thursday, up from £0.56m year-on-year.
The AIM-traded firm, which is still pre-revenue, said that was primarily made from net fair value gains on financial assets of £2.65m, rising from £0.72m the prior year, while its net fair value losses on financial liabilities totalled £0.18m for the year, compared to nil in 2018.

During the year, Westmount made material new investments in single-asset private companies JHI Associates and Cataleya Energy, increasing its exposure to ExxonMobil-operated drilling on the Canje and Kaieteur Blocks in 2020.

It also noted that its exposure to a multi-well funded drilling portfolio offshore Guyana during 2019-2020 had yielded two oil discoveries - Jethro-1 and Joe-1 - to date.

The company's investments in Eco Atlantic Oil and Gas and Ratio Petroleum were said to be performing "strongly", and post year-end, the board said a subscription offer and subscription extension at 13p per share had yielded £5.57m in aggregate.

Westmount's board said its focus remained on deploying capital in the "prolific, emerging" Guyana-Suriname Basin.

"Westmount continues to offer the opportunity for private companies, with assets in offshore Guyana, to gain access to London capital markets via RTO or to provide a liquidity event for their shareholders," said chairman Gerarg Walsh.

"While these private companies decide on their path forward, our strategy of investing across four different companies - EOG, Ratio, JHI, CEC - with interests in three different exploration blocks - Orinduik, Canje, Kaieteur - continues to provide our shareholders with exposure to the two discoveries on Orinduik, already announced this year, and a potential further three to seven funded high impact wells over the next 12-15 months."

Walsh said history had shown that small percentages in big assets could reap material returns.

"The upcoming exploration wells and their respective geological risks are independent of each other and therefore our strategy provides shareholders with some risk diversification and a portfolio effect.

"Success in some of these wells could result in transformational value changes.

"The condensed drilling time frame and number of exploration wells points to exciting times ahead for shareholders."

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