Half Yearly Report

Westmount Energy Limited

Interim Results to 31 December 2011

CHAIRMAN'S REVIEW

The past six months have been one of change for your Company.

Having repaid a total of 160p to shareholders since flotation in 1995 it was your board's agreed strategy to seek a new direction and future for its shareholders.

On the 30th November 2011 we announced that we had issued 2.2 million new shares at 20p to Gerard Walsh and Thomas O'Gorman who were both appointed directors of Westmount on the same date as the Issue. The new directors have considerable experience in the financing of the oil exploration industry and will seek new Investment opportunities for your Company while reviewing our existing investment portfolio.I have also to report that Paul Anderson, who has been involved in Westmount's business since 1996, has resigned as a director and will cease providing company secretarial support in order to pursue his professional career and we would like to record our thanks for all his efforts over the past years and wish him well for the future. David King of Dominion Corporate Services Limited ("DCG") has been appointed as director and DCG as company secretary, to replace Paul and Bedell's, and we welcome him to the board.

The expenses for the half year include a larger than usual non cash item which relates to the formal requirement of IFRS to account for the options granted coincident with recent board appointments. The actual cash expenses for the six month period were £143,000 as compared with £154,000 for the same period in 2010.

We look forward a new and interesting phase of your Company's future.

Mervyn Bradlow

Chairman

Date: 20 January 2012

WESTMOUNT ENERGY LIMITED

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 DECEMBER 2011

(Expressed in United Kingdom Sterling)

Six months ended

Six months ended

Year ended

31 Dec 2011

31 Dec 2010

30 June 2011

(unaudited)

(unaudited)

(audited)

£

£

£

Realised (loss)/gain on disposal of investments

(962,745)

1,466,481

 1,499,314

Unrealised gain/(loss) on financial assets at fair value through

profit or loss

911,865

(2,880,250)

(4,488,522)

Administration expenses

(359,020)

(175,909)

(334,523)

Operating loss

(409,900)

(1,589,678)

(3,323,731)

Interest receivable

42

3,275

4,429

Loss before tax

(409,858)

(1,586,403)

(3,319,302)

Taxation

-

-

-

Comprehensive loss for the period

(409,858)

(1,586,403)

(3,319,302)

Basic loss per share (pence)

(5.19)

(22.73)

(46.06)

Diluted loss per share (pence)

-

-

-

The Company had no items of other comprehensive income during the period.

WESTMOUNT ENERGY LIMITED

CONDENSED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2011

(Expressed in United Kingdom Sterling)

Six months ended

Six months ended

Year ended

31 Dec 2011

31 Dec 2010

30 June 2011

(unaudited)

(unaudited)

(audited)

£

£

£

ASSETS

Non current assets

Financial assets at fair value through profit and loss

891,301

3,012,375

1,298,215

Current assets

Trade receivables

4,816

4,754

7,228

Cash and cash equivalents

787,281

3,450,124

291,519

792,097

3,454,878

298,747

Total assets

1,683,398

6,467,253

1,596,962

LIABILITIES AND EQUITY

Current liabilities

Trade and other payables

118,730

234,692

278,302

EQUITY

Share Capital

1,946,060

1,396,060

1,506,060

Share Premium Account

248,524

261,682

248,524

Share Option Account

550,071

298,717

334,205

Profit and Loss Account

(1,179,987)

4,276,102

(770,129)

Total equity

1,564,668

6,232,561

1,318,660

Total liabilities and equity

1,683,398

6,467,253

1,596,962

WESTMOUNT ENERGY LIMITED

CONDENSED STATEMENT OF CHANGES IN EQUITY

(Expressed in United Kingdom Sterling)

Share capital

Share premium

Share option

Retained

Total equity

Account

Account

Account

Earnings

£

£

£

£

£

As at 1 July 2010

1,396,060

261,682

277,210

5,862,505

7,797,457

Total comprehensive income

Loss for the period ended 31 December 2010

 -

- 

- 

(1,586,403)

(1,586,403)

Transaction with owners

Costs of share options

-

-

21,507

-

21,507

-

-

21,507

-

21,507

At 31 December 2010

1,396,060

261,682

298,717

4,276,102

6,232,561

Total comprehensive income

Loss for the period ended 30 June 2011

-

-

-

(1,732,899)

(1,732,899)

Transaction with owners

Issue of ordinary shares

110,000

-

-

-

110,000

Premium on ordinary shares

-

89,250

-

-

89,250

Issue of B shares

75,303

(75,303)

-

-

-

Redemption of B shares

(75,303)

-

-

(3,313,332)

(3,388,635)

Redemption costs

-

(27,105)

-

-

(27,105)

Cost of share options

-

-

35,488

-

35,488

110,000

(13,158)

35,488

(3,313,332)

(3,181,002)

At 30 June 2011

1,506,060

248,524

334,205

(770,129)

1,318,660

Total comprehensive income

Loss for the period ended 31 December 2011

-

-

-

(409,858)

(409,858)

Transaction with owners

Issue of ordinary shares

440,000

-

-

-

440.000

Cost of share options

-

-

215,866

-

215,866

440,000

-

215,866

-

655,866 

At 31 December 2011

1,946,060

248,524

550,071

(1,179,987)

1,564,668

WESTMOUNT ENERGY LIMITED

CONDENSED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 31 DECEMBER 2011

(Expressed in United Kingdom Sterling)

Six months ended

Six months ended

Year ended

31 Dec 2011

31 Dec 2010

30 June 2011

(unaudited)

(unaudited)

(audited)

Notes

£

£

£

Net cash outflows from operating activities

1

(300,314)

(127,956)

(209,946)

Purchase of investments

-

(1,024,785)

(1,024,786)

Sale of investments

356,034

2,083,991

2,222,713

Interest received

42

3,275

4,429

Net cash generated from investing activities

356,076

1,062,481

1,202,356

Ordinary shares issued

440,000

-

199,250

Redemption of B shares

-

-

(3,415,740)

Net cash generated/(used) in financing activities

440,000

-

(3,216,490)

Net increase/(decrease) in cash and cash equivalents

495,762

934,526

(2,224,080)

Cash and cash equivalents at the beginning of the period

291,519

2,515,599

2,515,599

Cash and cash equivalents at the end of the period

787,281

3,450,124

291,519

WESTMOUNT ENERGY LIMITED

NOTES TO THE UNAUDITED INTERIM RESULTS

FOR THE PERIOD ENDING 31 DECEMBER 2011

1

Cash flow statement

Reconciliation of net cash flow from operating activities

Six months ended

Six months ended

Year ended

31 Dec 2011

31 Dec 2010

30 June 2011

(unaudited)

(unaudited)

(audited)

Total comprehensive loss for the period

(409,858)

(1,586,403)

(3,319,302)

Adjustment for interest income

(42)

(3,275)

(4,429)

Adjustment for net (gain)/loss on investments at fair value through profit or loss

(911,865)

2,880,250

4,488,522

Adjustment for costs attributable to share options

215,866

21,507

56,995

Adjustments for realised gains on investments at fair value through profit or loss

962,745

(1,466,481)

(1,499,314)

Decrease/(increase) in prepayments and accrued income

2,412

2,261

(213)

(Decrease)/increase in creditors and accrued expenses

(159,572)

24,185

67,795

Net cash outflow from operating activities

(300,314)

(127,956)

(209,946)

2

Investments

Six months ended

Six months ended

Year ended

31 Dec 2011

31 Dec 2010

30 June 2011

(unaudited)

(unaudited)

(audited)

£

£

£

Desire PLC, at market value

430,000

1,217,625

423,115

Cost, 2 million shares

874,643

1,115,174

1,071,438

(31 December 2010: 2.55 million, 30 June 2011: 2.45 million shares)

Sterling Energy, at market value

340,001

1,263,750

592,500

Cost, 0.85 million shares

1,467,208

2,589,192

2,589,192

(31 Dec 2010: 1.5 million, 30 June 2011: 1.5 million shares)

Argos Resources Limited, at market value

121,300

531,000

282,600

Cost, 1 million shares

310,775

372,930

310,775

(31 Dec 2010: 1.2 million, 30 June 2011: 1 million shares)

Total market value

891,301

3,012,375

1,298,215

Total cost

2,652,626

4,077,293

3,971,405

Current period movement

(1,761,325)

(1,064,918)

(2,673,190)

Reverse prior year FV adjustment

2,673,190

(1,815,332)

(1,815,332)

Current period income statement impact

911,865

(2,880,250)

(4,488,522)