Investment company Westmount Energy Ltd has been hit by a sharp decline in its oil exploration company shares.
Although there was a realised gain on disposals of £1.5m in the year to June 2011, this was more than offset by £4.49m of investment write-downs.
At 17.5p, down 3.5p, Westmount is valued at £1.32m. The company’s NAV is £1.32m, down from £7.8m one year earlier. Shareholder distributions accounted for £3.42m of that decline.
Westmount has investments in three quoted companies – Desire Petroleum, Sterling Energy and Argos Resources – plus £292,000 in cash. The majority of the write-down was accounted for by Sterling Energy.
Sales of shares in Sterling Energy have raised £100,000 since the year end. The current market value of the remaining portfolio is £1.3m, which is similar the June 2011 figure.
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