Westmount Energy plunges on wider annual loss

Shares in Westmount Energy plunged on Friday, after the group reported a wider annual pre-tax loss and unveiled plans to raise funds.

In the year to 30 June, the London-listed company posted a pre-tax loss of £222,239, 8.09% wider year-on-year, on the back of a difficult year for investors in the oil and gas markets, due to a slump in oil prices.

Despite the disappointing results, the group remained confident there will be opportunities for investment in the sector in the medium-term future and has decided to raise funds through a conditional placing and open offer.

The company said it aims to raise £633,212 via the issue of 15.8m shares at 4p each, with the conditional subscription accounting for £240,000 through the issue of 6m to two private investors, Dermot Corcoran and John Craven.

Meanwhile, the open offer will account for the remaining £393,212 through the issue of 9.8m shares to existing shareholders on a one-for-one basis.

Westmount added its directors will take up their full entitlements in the open offer, which will comprise 2.6m open offer shares.

Westmount Energy shares were down 25.93% to 5.00p at 1222 GMT on Friday.