Business
Exploration in Chaco Basin
Exploration in Chaco Basin.
About this update from Westmount Energy Limited
[{"type":"text","content":"\n Westmount Energy Limited\n19 January 2006\n\n\nCONTACTS:\n\nWestmount Energy Limited Tel: 01534 814 209\nDerek Williams, Chairman\nPaul Anderson, Director\n\nRuegg & Co Limited Tel: 020 7584 3663\nGavin Burnell\nBrett Miller\n\nMerlin Tel: 020 7653 6620\nPaul Downes\nTom Randell\n\n\n\n19 January 2006\n\n\n WESTMOUNT ENERGY LIMITED\n \n \n PARTICIPATION IN OIL & GAS EXPLORATION IN THE CHACO BASIN\n \n IN NORTH WEST PARAGUAY THROUGH CDS OIL & GAS GROUP plc\n \n AND OTHER RECENT EVENTS\n\n\nWestmount Energy Limited ('Westmount') the Jersey, Channel Islands, based\nindependent energy investment company quoted on AIM, today announced it has\nprovided a £500,000 Convertible Loan to AIM quoted CDS Oil & Gas Group plc ('CDS'),\nto be utilised solely towards the funding of its exploration programme in the Chaco\nBasin in North West Paraguay.\n\nThe Loan is repayable on 29 December 2006, but in lieu of repayment, Westmount\nhas the option, at any time prior to 29 December 2006 to elect to subscribe for,\nand apply the amount of the Loan by subscribing for and paying up five million\nnew ordinary shares of 1p each in CDS at a subscription price of 10p per share.\nWestmount will waive any interest and CDS will simultaneously procure the issue\nto Westmount of Warrants to subscribe for a further five million new ordinary\nshares of 1p each in CDS at 10p per share for a period of one year thereafter.\n\nIn the event Westmount has not exercised its rights as aforesaid, by 29 December\n2006 it has agreed to apply the Loan (including accrued interest thereon) in\npaying up and automatically subscribing for on 29 December 2006, such number of\nnew ordinary shares of 1p each in CDS as shall be found by dividing the\naggregate amount of the Loan and accrued interest by the 'Average Price' (namely\nthe average mid-market price per share of an Ordinary Share of 1p in CDS as\ntraded on AIM for the previous 14 trading days prior to the 29 December 2006)\nless 5% thereof.\n\nCDS is a London based newly listed AIM company and owns CDS Energy S.A., a\nParaguayan company which was formed to pursue the exploration and development\npotential of three blocks covering a large area (7.22 million acres or 29,210 km\n(2)) of North West Paraguay in South America.\n\nCDS has a 100% working interest in all three blocks, which include the 400km(2...