Business
Subscription to raise up to £5.0 million
Subscription to raise up to £5.0 million.
About this update from Westmount Energy Limited
[{"type":"text","content":"\n \nRNS Number : 0010K Westmount Energy Limited 23 August 2019 \n\nThe information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.\n \nThis announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company and for the avoidance of doubt this announcement is not an offer and not capable of being accepted.\n \n \n23 August 2019\n \nWESTMOUNT ENERGY LIMITED\n(\"Westmount\" or the \"Company\")\n \nSubscription to raise up to £5.0 million\n \nThe Board of Westmount is pleased to announce a conditional subscription to raise gross proceeds of up to £5.0 million (the \"Subscription\") through the issue of up to 38,461,538 new ordinary shares of nil par value (the \"Subscription Shares\") at 13 pence per share (the \"Issue Price\") to certain new and existing investors. The proceeds of the Subscription will be used to pursue Westmount's ongoing investment strategy, focused on the Guyana-Suriname Basin, as well as for general corporate purposes.\n \nBackground to and reasons for the Subscription\nWestmount's strategy continues to be to seek exposure to opportunities in the prolific Guyana-Suriname Basin, a major emerging hydrocarbon province where, since 2015, ExxonMobil and its Stabroek Block partners have reported discovered recoverable resources in excess of 6 billion oil-equivalent barrels and 13 successes out of 15 exploration wells. Through the Company's existing portfolio of investments in the Guyana-Suriname Basin, the Board believes that the Company will have exposure to between four and seven funded wells over the coming 12-18 months, including the recently announced Jethro-1 Oil Discovery well. The Board continues to engage closely with its portfolio companies and other incumbents in the region, and believes that there may be further investment opportunities for the Company in the short to medium term with the potential for a transformational transaction in due course.\n \nFollowing completion of the Subscription and subject to various approvals, it is expected that, on or around 30 August 2019, Westmount will agree to acqu...