31st Mar 2020 16:58
(Alliance News) - Westmount Energy Ltd on Tuesday reported a swing to an interim loss due to losses from financial assets held at fair value, but continues to focus on the Guyana-Suriname basin, offshore South America.
For the six months to the end of December, the investment company's pretax loss was GBP955,810, swinging from a profit of GBP259,421 the year before, mainly driven by a net loss of GBP756,794 on financial assets, compared to a gain of GBP424,084.
Westmount described the period as "exciting", as aggressive exploration drilling by several operators including ExxonMobil, Tullow Oil and Total SA all yielded new discoveries, new plays and stacked petroleum systems.
Looking ahead, with no new offshore deepwater licences awarded since January 2016, Westmount believes it will be the only London-listed junior player offering exposure to drilling offshore Guyana in 2020.
"Westmount's current investment portfolio offers shareholders exposure to potentially a minimum of 3 ExxonMobil operated Upper Cretaceous wells, across the Canje and Kaieteur Blocks, over the next 12 months. With independent geological risks these prospects provide some risk diversification and a portfolio effect in addition to drilling program results over a condensed timeframe," said Chair Gerard walsh.
"Furthermore, current guidance from the various deepwater operators indicates that Westmount is likely to be the only London quoted junior player offering exposure to drilling offshore Guyana in 2020. Success in some of these wells could result in transformational value changes for the medium term and positive times ahead for shareholders," Walsh added.
Shares in Westmount Energy closed flat at 8.25 pence in London on Tuesday.
By Dayo Laniyan; [email protected]
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