19th Nov 2024 14:25
(Alliance News) - Westmount Energy Ltd shares fell as it reported various strategic developments but noted that "patience has been required 'in spades'".
Shares in Westmount were down 15% at 0.98 pence in London on Tuesday afternoon.
The oil and gas investment firm, which is focused on high impact drilling outcomes in emerging basins, reported a pretax loss of GBP745,734 for the year ended June 30, narrowed from a GBP3.0 million loss the year before.
Westmount is non-revenue generating, and the narrowed loss was primarily due to net value losses on financial assets which were reduced to GBP491,941 from GBP2.7 million.
The firm held GBP222,304 in cash and equivalents at June 30, down from GBP478,200 one year prior.
During the year, Westmount said highlights included Exxon Mobil, the operator of the Canje block in offshore Guyana, securing a one-year extension on the licence to March 2026.
Westmount said Exxon Mobil and Hess have exited their interests in the Kaieteur block in offshore Guyana, but that a farm-down process is underway led by new operator and the block's 50% holder Ratio Petroleum.
Also, a farm-down process is ongoing to support drilling of the Cretaceous commitment well in the Orinduik block in offshore Guyana.
As for the Orange Basin in offshore Namibia, Westmount noted that appraisal activities have been carried out on the Venus discovery. In February it was announced that the Mangetti-1X exploration and appraisal well had confirmed the northern extension of Venus and interesected hydrocarbon bearing intervals in the shallower Mangetti fan prospect, "indicating a second significant discovery on Block 2913B".
Westmount said there was a "lull in Orange Basin drilling activity between May and October" but operations have now restarted, with TotalEnergies spudding the Tamboti-1x exploration well in late October.
Chair Gerard Walsh said Westmount currently "retains some liquid assets, a minimal cost base and investment exposure to some high impact exploration and appraisal drilling opportunities".
"While patience has been required 'in spades', we believe that some of our investees are making progress - with visibility to potentially multiple high impact exploration wells from Q4 2024," Walsh continued. In this changing landscape, some of our investees may also consider portfolio diversification and possible consolidation manoeuvres as part of their risk management strategies and financing arrangements.
"In all cases, line of sight to indirect participation in high impact drilling remains the key investment objective for Westmount."
By Emma Curzon, Alliance News reporter
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