Westmount Energy to invest in possible Guyana interests

Westmount Energy is to raise £764,258 in order to invest in possible offshore energy interests in Guyana.

The AIM-listed investor will raise the funds from a subscription of 4m new shares of 5p each to raise £200,000, before expenses, with two institutional investors and an open offer of up to 11.28m shares of 5p each to raise £564,258.35, before expenses.

The 5p share price is a 23.1% discount on the closing middle market price of 6.5p on Tuesday.

The subscription shares are expected to be admitted to trade on AIM on 18 April and the open offer shares on 8 May.

Westmount directors Gerard Walsh, Thomas O'Gorman and Dermot Corcoran, who collectively hold 29.99% stake in the company, are intending to take up their open offer entitlements.

The proceeds will be used to fund potential investments in Guyana’s offshore basin and will also be used to repay up to £77,500 of a £270,000 loan from Walsh, related to an investment in Eco (Atlantic) Oil & Gas in February.

Shares in Westmount Energy were down 4% to 6.24p at 0802 BST.