Westmount Energy Reports 2025 Final Results with Sea Lion FID Set to Unlock Falkland Basin

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.