LONDON (Alliance News) - Westmount Energy Ltd on Friday reported a wider pretax loss in its last financial year and said it will raise GBP633,212 in order to make further investments.
The oil and gas sector investment vehicle said its pretax loss in the year ended June 30 widened to GBP222,239 from GBP205,606 the year before, in what it said was a very challenging year for investors in oil and gas assets due to the fall in oil prices.
However, it said that despite challenging industry conditions, it believes there will be opportunities for investment in the sector and therefore is conducting a conditional placing and open offer to raise funds for working capital.
Westmount aims to raise GBP633,212 through the issue of 15.8 million shares at 4.0 pence each. The conditional subscription will account for GBP240,000 through the issue of 6 million shares to two private investors, Dermot Corcoran and John Craven, and the open offer will account for the remaining GBP393,212 through the issue of 9.8 million shares to existing shareholders on a one-for-one basis. The company
Westmount said all of its directors will take up their full entitlements in the open offer, totalling 2.6 million open offer shares. Chairman Gerard Walsh and Thomas O'Gorman, a director, also will subscribe to any leftover shares but will ensure their holdings don't exceed 29.9%, the company said. They each hold 1.1 million shares currently, representing 11% of the company each or 22% in total.
Shares in Westmount were untraded on Friday, having last traded at 6.08 pence.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Westmount Engy. (WTE)