Last checked at 13 May 2019 12:11
The information contained within this announcement (the "Announcement") is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this Announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
13th May 2019
WESTMOUNT ENERGY LIMITED
("Westmount" or the "Company")
Shareholding in Eco Atlantic Oil and Gas Ltd.
The Board of Westmount wishes to report that it has amended its shareholding in Eco Atlantic Oil & Gas Ltd. ("Eco") through the open market sale of 1,625,000 common shares, resulting in net cash proceeds, after transaction costs, of approximately £1.34m. The proceeds will be used to continue Westmount's investment policy of seeking to pursue value opportunities in the emerging Guyana-Suriname Basin. Westmount retains a substantial holding of 1,500,000 shares in Eco, representing slightly less than 1% of Eco's issued share capital.
Concurrent with its listing and admission to AIM, in February 2017, Eco completed a circa £5m, placing at £0.16 per share. Westmount subscribed for 3,125,000 shares in that placing and this subscription has proved to be an outstanding investment for the company, yielding a +400% return on capital invested to date.
Eco is an AIM and TSX-V listed oil and gas exploration company with its main assets located offshore Guyana and Namibia. Imminent operational activity includes participation in the drilling of 2 fully-funded wells on the Orinduik Licence, offshore Guyana during Q2/Q3 2019. For the nine months ended 31 December 2018, Eco generated a net profit of approximately CAD $11.33m (Year ended 31 March 2018: net loss of CAD $8.36m).
This share divestment is consistent with Westmount's strategy of managing portfolio risk and its capital resources while seeking value opportunities in the prolific Guyana-Suriname Basin. Westmount retains a shareholding of 1,500,000 shares in Eco which the Board considers to offer Westmount shareholders, together with other investments in Westmount's portfolio, exposure to 3 to 7 fully funded wells over the next 12-18 months in the most prolific emerging hydrocarbon province worldwide.
For further information, please contact:
Westmount Energy Limited www.westmountenergy.com
David King, Director Tel: +44 (0) 1534 823133
Jane Vlahopoulou
Cenkos Securities plc (Nomad and Broker) Tel: +44 (0) 20 7397 8900
Nicholas Wells/Harry Hargreaves (Corporate Finance)