News blog
Westmount Energy Ltd
- BY: Andrew Hore |
- POSTED: 12/03/2010 |
Oil and gas company investor Westmount Energy Ltd’s net asset value has been boosted by the strong performance of Falkland Islands explorer Desire Petroleum.
Westmount invested more money in Desire in the six months to December 2009. The overall cost of the investment is £1.15m and the value at the end of 2009 was £4.42m. Westmount has sold around 1.1m shares since then leaving it with 3.7m shares. The Desire share price is currently slightly higher than at the end of 2009 but the sales may have been at a higher share price.
Desire started drilling offshore of the Falkland Islands before the end of February. Desire has shrugged off any political worries concerning Argentina’s claim to the islands and the surrounding ocean.
The Ocean Guardian drilling rig arrived in Falklands waters on 19 February. Desire started drilling the Liz 14/19-A exploration well a few days later. It will take 30 days to drill the 3,500 metre well.
The other investment is in Sterling Energy, which was also added to during the period. This holding is currently worth £2.54m, which is slightly lower than cost. The share price has fallen since the end of 2009.
Westmount expects drilling news from Desire and Sterling, relating to its Kurdistan interests, in the next few months.
The additional investment in Desire means that cash had fallen from £874,000 to £219,000. There is £628,000 due from the company’s broker.
At 96p a share, Westmount is valued at £6.7m. The net asset value at the end of 2009 was £7.65m. The current NAV could be higher given the Desire share sale.
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