Westmount Energy’s 2025 results – what actually moved the dial
Westmount Energy has published its final results for the year ended 30 June 2025 and set a clear narrative for the year ahead: the Falkland Islands could become the catalyst. The headline operational theme is that Sea Lion – a giant North Falklands discovery – is expected to reach FID (final investment decision) in Q4 2025. That is important, because Westmount has look-through exposure via Production Licence PL001.
Financially, it was another loss-making year, driven by non-cash fair value movements and modest overheads. There is no debt, a lean cost base, and a portfolio of private and listed holdings that provide optionality, but the cash balance is slim and the Guyana assets still need fresh catalysts.
Sea Lion FID in Q4 2025 – why the Falklands could unlock value
Sea Lion Phase 1 sits on a Gross 2C contingent resource of more than 700 million barrels, in around 400 metres of water with benign conditions and a life-of-field breakeven of $25/bbl. If FID lands on schedule, it should de-risk the wider North Falkland Basin and spur new exploration.
PL001 next door – Tyche and Dinlas prospects in focus
Westmount has an effective 6.24% economic interest in PL001 via JHI. The block is adjacent to Sea Lion and fully covered by 3D seismic. JHI’s internal work highlights an aggregate 3.1 billion barrels of prospective recoverable resources on PL001, with upside above 10 billion barrels. Two prospects within the same stratigraphic interval as Sea Lion – Tyche and Dinlas – have each been high-graded at c.400 million barrels recoverable.
PL001’s second exploration period has been extended to 31 December 2026, with the option to enter a ten-year third period from 1 January 2027 that includes a firm well commitment. Fiscal terms are described as benign – 9% royalty and 26% corporation tax – which helps economics.
Guyana-Suriname: rich basin, slower near-term pace
Guyana remains a world-class province, but Westmount’s investees saw limited drilling progress in 2024-2025. The operator at Canje secured a one-year extension to March 2026, while farm-out processes continue at Kaieteur and Orinduik. The RNS is frank: several drill-ready prospects are high-graded, but JV alignment, permitting, financing and licence timing need to fall into place for rigs to arrive.
Canje Block – extension in hand, drilling guidance not disclosed
The Canje JV signed a one-year exploration extension to 4 March 2026 and relinquished 20% of the original area. The operator’s Cumulative Impact Assessment contemplated drilling from 2024, but that has not happened yet. Westmount owns circa 6.2% of JHI Associates Inc., which holds 17.5% of Canje. The RNS notes JHI’s last published cash was about USD$19.7 million as of 31 December 2021 – anything more current is not disclosed.
Kaieteur Block – farm-down drive continues
After ExxonMobil and Hess relinquished, the block reverted to Ratio Guyana and Cataleya (50% each). Ratio Petroleum is seeking to farm down, aiming to bring in a new deepwater operator. The 2020 Tanager-1 discovery is sub-commercial as a standalone, but appraisal activity at Ranger on neighbouring Stabroek is a useful regional datapoint.
Orinduik Block – Eco as 100% operator, well commitment by January 2026
Eco took operatorship and now holds 100%. A well to the Cretaceous is committed by January 2026 under the Petroleum Agreement. Eco is actively farming down and re-evaluating the Jethro and Joe heavy oil finds. ExxonMobil’s FID at the adjacent Hammerhead development – targeting first oil in 2029 – is a timely read-across.
Orange Basin, South Africa – carried exposure to a big-league drilling campaign
On Block 3B/4B, Eco and partners completed an “interest swap” and farm-down to TotalEnergies and QatarEnergy. Eco retains a 5.25% interest that is fully carried for up to two wells, and Westmount participates here via its listed holding in Eco. The environmental authorisation for drilling up to two wells was reported approved in October 2024. In short, Westmount keeps a low-capex ticket to a high-profile Orange Basin campaign.
Financial snapshot – lean cost base, modest cash, Level III assets doing the heavy lifting
Results were shaped by non-cash valuation movements rather than big operational cash flows. The sale of Africa Oil Corp (now Meren Energy Inc.) shares crystallised a loss over the holding period, but boosted cash in the year.
| Metric | FY25 |
|---|---|
| Total comprehensive loss | £551,794 (FY24: £745,734) |
| Earnings per share | -0.38p |
| Cash and cash equivalents | £0.281 million |
| Listed marketable securities | £0.153 million |
| Unlisted investments (Level III) | £3.536 million |
| Net assets | £3.95 million |
| Shares in issue | 144,051,486 |
| Debt | None |
Portfolio positions called out
- JHI Associates Inc. – 5,651,270 shares at 30 June 2025, valued at £2.183 million. Post period end, Westmount received a further 33,987 JHI shares in July 2025, taking the holding to 5,685,257 – an effective 6.24% economic interest in PL001.
- Cataleya Energy Corporation – 474,816 shares, valued at £1.353 million.
- Eco (Atlantic) Oil & Gas – 1,500,000 shares, valued at £147,450, representing 0.48% of Eco’s issued share capital as at 30 June 2025.
- Ratio Petroleum – 89,653 shares, valued at £5,892.
Admin costs were £254,317, continuing the disciplined trend. Net fair value losses were £295,478 and foreign exchange losses were £5,499. Management says the company has resources to fund minimum overheads into H2 2026, with liquid investments available to extend runway if needed.
My take – positives, negatives, and the catalysts to watch
What looks good
- Falklands leverage at the right moment – Sea Lion FID could unlock basin-wide activity. PL001 sits next door, in shallow water, on 3D seismic, with two high-graded 400 MMbbl prospects.
- Portfolio optionality – exposure to Falklands, Guyana and the Orange Basin provides multiple shots on goal, with a carried position in South Africa keeping capital intensity low.
- No debt and a tight cost base – helpful in a market that is rewarding discipline.
Where I am cautious
- Cash is modest – £0.281 million is fine for a lean shell, but it limits flexibility. Westmount remains dependent on monetising listed holdings or portfolio events.
- Guyana timing risk – Canje, Kaieteur and Orinduik are all quality geological addresses, but the RNS acknowledges that JV alignment, permitting, financing and licence extensions are gating items. Drilling guidance is not disclosed.
- Level III valuations – unlisted holdings are inherently judgemental. The auditor flags this as a key audit matter, although the opinion is unmodified.
Key near-term triggers
- Sea Lion FID in Q4 2025 and any follow-on Falklands exploration news from adjacent blocks.
- Farm-out progress at Orinduik and Kaieteur, plus clarity on Canje well plans before the March 2026 deadline.
- Orange Basin drilling timetable on Block 3B/4B – a carried, low-cost catalyst for Westmount via Eco.
Macro backdrop – mixed, but still supportive for advantaged barrels
Brent drifted from above $80/bbl to below $65/bbl in early November 2025, reflecting a looser near-term balance. Longer term, the company points to underinvestment and depletion as reasons exploration still matters. That dovetails with Westmount’s strategy of holding interests in basins that attract a disproportionate share of global capital.
AGM details and housekeeping
The AGM will be held at Floor 4, Liberation House, Castle Street, St Helier, Jersey JE1 4HH on 12 December 2025 at 11.00. The company is not recommending a dividend. There were no share issues, and the share-based payment reserve was transferred as options lapsed.
Bottom line: if Sea Lion gets the green light and farm-outs land in Guyana, Westmount’s look-through interests could start to be recognised again. Until then, this remains a holding company with meaningful geological torque, modest cash, and a disciplined cost base – high risk, but with clear catalysts on the horizon.
