The past year has been difficult for the company, the junior oil and gas sector remained out of favour. Valuations and share prices have continued to fall, which has been reflected in the valuation of our portfolio of exploration shares. However there are some signs that the cycle could be bottoming out. The oil price remains strong, the industry has plenty of cash, major stock markets have been strong and there have been a number of IPOs in the oil & gas sector in recent months. There has been an increase in corporate activity, including the recent transaction between Falklands Oil & Gas and Desire Petroleum, both shares were held in the portfolio. In line with our stated strategy, your board continued to look for an acquisition that would create value for shareholders. A large part of the year has been taken up with a specific proposal, outside the resource sector, that the majority of your board believed could have delivered significant value to shareholders. The proposal did not come to fruition. Westmount Energy Limited remains a highly attractive, Jersey based, investment vehicle quoted on AIM. The company is well positioned to evaluate and take advantage of new investment opportunities should they hold value creating potential for shareholders. The board together with our advisors continue to seek a suitable strategic acquisition, primarily but not exclusively within the resource sector where the board has core experience. Finally, following my recent appointment as chairman, I would thank Mervyn Bradlow for his services to the company as chairman over many years, he remains a director of the company. Gerard Walsh 26 March 2014 |