Westmount Energy Limited Investment in Eco (Atlantic) Oil & Gas Ltd (3292W)
February 08 2017 - 4:17AM
UK Regulatory
TIDMWTE
RNS Number : 3292W
Westmount Energy Limited
08 February 2017
8 February 2017
Westmount Energy Limited
("Westmount" or the "Company")
Investment in Eco (Atlantic) Oil & Gas Ltd
The Board of Westmount is pleased to announce that it has
subscribed for 3,125,000 ordinary shares of no par value in Eco
(Atlantic) Oil & Gas Ltd ("EOG") at a price of 16 pence per
ordinary share (the "Subscription"). The Subscription will be
funded by the Company's existing resources and a loan of GBP250,000
from Mr Gerard Walsh, Chairman of Westmount (the "Loan").
EOG is a Canadian oil and gas exploration company that currently
holds interests in the 1,800 km(2) Orinduik offshore block in
Guyana and four offshore petroleum licenses, covering more than
32,000 km(2) in the Walvis and Lüderitz Basins in Namibia. EOG is
currently traded on TSX Venture Exchange and has today successfully
completed a GBP5.09 million placing in connection with its
admission to AIM. It is expected that Westmount will hold
approximately 2.6% of EOG's issued share capital following
admission of the Subscription shares.
For the 12 months ended 31 March 2016, EOG made a net loss of
CAD$5,107,496 and had gross assets of CAD$7,312,774. EOG provides
further disclosures on its business and financial position through
its website at www.ecooilandgas.com. Following completion,
Westmount's shareholding in EOG will represent approximately 63 per
cent. of Westmount's gross assets as at 7 February 2017.
Loan Agreement & Related Party Transaction
To part finance the investment, the Company has entered into a
loan agreement with Gerard Walsh, director of the Company, for the
sum of GBP250,000. The Loan is unsecured and does not attract
interest. The Loan is repayable by the Company within 60 days upon
receipt of written notice from Mr Walsh.
The Loan is considered a related party transaction under the AIM
Rules for Companies. The Board of Westmount, excluding Mr Walsh,
having consulted with Cenkos Securities plc as the Company's
Nominated Adviser, considers the terms of this transaction to be
fair and reasonable in so far as the Company's shareholders are
concerned.
Gerard Walsh, Chairman of Westmount, commented:
"The motive for the investment in EOG is to offer Westmount
shareholders a low entry cost for exposure to the Orinduik block in
the Guyana basin. The Orinduik block is operated by Tullow Oil Plc
and is adjacent to the Stabroek Block operated by Exxon Mobil that
contains the world-class Liza discovery, which is estimated by
Exxon to have recoverable resources of approximately 1.4 billion
boe, together with the recently announced Payara discovery. The
Guyana basin is attracting significant industry interest and
expects to see considerable exploration activity over the coming
years. The EOG management team has strong expertise in global oil
and gas exploration and operation of resource assets. EOG will be
the only junior exploration and production company listed on AIM to
operate in the Guyana basin. I am pleased to offer my continued
support to the Company by providing additional cash resources to
fund this investment."
For further information, please contact:
Westmount Energy Limited www.westmountenergy.com
David King, Director Tel: +44 (0)1534
823028
Cenkos Securities plc Nomad and Tel: +44 (0)20
Broker 7397 8900
Nicholas Wells / Elizabeth Bowman
(Corporate Finance)
This announcement contains inside information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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