23rd Aug 2019 09:38
(Alliance News) - Westmount Energy Ltd on Friday said it has launched a conditional subscription to raise GBP5.0 million to pursue its ongoing investment strategy, focused on the Guyana-Suriname basin.
The energy investment company said it will issue 38.5 million shares at a price of 13 pence each to new and existing investors. The stock was trading 29% lower on Friday in London at 15.00p a share, giving it a market capitalisation of GBP9.7 million.
Westmount said Hargreave Hale Ltd - which holds 27% of its shares - and Chair Gerry Walsh have subscribed for 10.4 million and 2.3 million shares, respectively. Following the transaction Walsh will hold 11% stake in Westmount.
Westmount said it continues to seek exposure to opportunities in the prolific Guyana-Suriname basin, a major emerging hydrocarbon province where, since 2015, oil & gas firm ExxonMobil Corp and its Stabroek block partners - ExxonMobil affiliate Esso Exploration & Production Guyana, Hess Guyana Exploration, and CNOOC Nexen Petroleum Guyana - have reported discovered recoverable resources in excess of 6 billion oil-equivalent barrels.
Therefore, the company said it continues to engage closely with its portfolio companies and other incumbents in the region, and believes that there may be further investment opportunities in the short to medium term, with the potential for a "transformational" transaction.
Following completion of the subscription, Westmount said it expects, on or around Friday next week, to acquire up to 313,500 shares in Cataleya Energy Corp at a price of USD10.00 per share. Should the proposed investment proceed, Westmount would hold 5.4% stake in Cataleya.
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