Losses narrow as Westmount Energy significantly reduces corporate overheads

Jersey-based firm Westmount Energy saw losses narrow in its last financial year as corporate overheads were reduced as a result of several board members choosing to offer their services free of charge.

Rising oil prices and strengthening investor sentiment produced a more stable trading environment for Westmount which helped the firm cut its losses from £373,522 at the end of the 2016 financial year to £200,500 for the twelve months ended 30 June.

Westmount spent much of the financial year focusing on the Guyana-Suriname basin in the North Eastern corner of South America, completing a strategic investment of £500,000 in Eco Oil and Gas (EOG) as part of the firm's initial public offering on the London Stock Exchange on 8 February.

EOG carried out a 3D seismic programme on the Orinduik permit located offshore Guyana with its partner Tullow oil, the results of which led Westmount to believe that there was a "major emerging hydrocarbon province" that held the potential to offer "significant investment returns" in a 'lower for longer' oil price environment.

Chairman Gerard Walsh said, "The corporate overhead has been reduced as much as possible in recent years and myself and fellow board members Tom O'Gorman and Dermot Corcoran, who have all invested significantly in the December 2015 and April 2017 fundraisings, continue to provide our services free of charge to the Company while we actively seek and evaluate appropriate transactions for your company."

Administrative expenses widened from £112,611 to £188,818, but diluted losses per share shrunk from 2.23p to 0.79p for the year.

Cash and equivalents ballooned from £402,716 at the end of the prior period to £548,042 as of 30 June.

As of 1345 GMT, shares had retreated 4.15% to 6.35p.